Hey everyone welcome back to episode four, the best swing trade pattern for mornings., I'm lead training with Stocks To Trade, Tim Bowen.. If you're stumbling on this video out of sequence, definitely head over to www.stocksoftrade.com/freetraining. You'll get the worksheet. You'll also get the archive..

Obviously this is episode. Four., I'm glad you're here.. I would prefer you start at the beginning and work your way. Through.

And again. If you go to the free training link below in www.stockstotrade.com/freetraining, you'll, be able to catch up. You'll get the worksheet et cetera. All right..

That being said, let's talk about the best swing trade pattern for mornings., Okay, and that is going to be the weak, open red to green., Okay, And let me define a couple terms.: This can be confusing to people because of lot of you know the commonality of Words and stuff. So when I say weak open, it's W-E-A-K like weak, like you, can't pick up much weight like like a weak chart that can't go higher.. A lot of people get confused because they were thinking timeframes which is good.. You know we talk about daily, weekly monthly yearly patterns on the chart., But when I say weak open, I'm talking about W-E-A-K, which is a stock that basically a red open.

You know you could say the same day. You could see a red open red to green, which is a little redundant, but so that's that weak idea., It's a stock, that's been steadily up trending for days., Okay, You can see DATS, I'm going to jump back to today's action, but you can see. Dats has one two three four five, six seven green days in a row. Going back to today would have been six green days today was the seventh, but it's a stock that is steadily up.

Trending at 52 week highs go back to your worksheet.. It closes near the high of the day, which is what we want, because now we've got a bullish chart on the daily, as well as the intraday chart.. So we've got that timeframe alignment.. So the idea is very strong, close on the on the daily chart and the intraday.

Well, how do we? How do we enter this stock? Do we just do a market order in the morning, pile in you know how do we actually approach this thing? What we want and what we love about, that weak, open red to green is it's confirmation, okay And when I say red, to green green to red that is based on the previous days: close., Okay, So anytime, you hear me, say red to green green to red. It is that previous days indicator, which you can see is denoted on my screen as this yellow line and the reason it's called the red to green green to red is if the stock is below the closing days or previous days. Price is red on the day.. If it's above the previous days close, it's called green on the day., So the idea is the stock steadily up trending for days weeks.

Months. I mean this is all time highs for DATS.. Then it opens red which you're looking for buyers to step in and support., And you can see that happen. This morning.

DATS, you know, had a little bit of a gap up but pretty weak, but then went red on the day at about 10:45 AM. And then basically stayed red all the way up until one 30 in the afternoon.. Now I know I'm calling this the best morning pattern, but this is just such a great example.. Normally, normally we would look at a red to green a little earlier in the day.

Focus on the pattern more than the time of day in this example. This is just such a beautiful example. I had to use it today, but normally they'll gap down at the open then go green in that 9 45 window, which you hear me talk about all the time, whether it be in the e-book, the podcast pre-market, prep et cetera.. So once that stock goes green, that's showing us that the buyers are still in control..

They push that stock higher through the high or through that green, to red, a red to green sorry., And then that shows up on everybody's scanners.. It's a new 52 week high because remember now we're above the previous days close and you can see the volume confirmation come in.. So now we're looking at that whole dollar. Half dollar - we talked about again in the previous video.

This would have been 12.. So when 12 breaks you risk off of green to red., So you'd be risking down at 1150.. That gives you a goal of 1350 three to one risk to reward. Something you'll hear me talk about all the way through this course.

Once it breaks 12 you'd use your stop limit order that we talk about as our way to automate this in future videos. You would set your stop order at 1250.. You would set your goal at 1350 and you can see at about an hour or later you would have been filled at 1350.. You would have made a buck 50, a share risking 50 cents, a share in a quote: unquote: quality, hot sector earnings, winner stock., I mean this thing is again very, very good setup.

And ultimately it's the same thing tomorrow.. You know tomorrow cause you can see notice going back to the beginning of the video pay attention to what I said. It now closed. Literally, at the high of the day., I mean it pinned the high of the day at 1460 ish, which is also a new 52 week high, which has also then tomorrow.

The red to green green. To red line is going to be 1460.. We're going to look for that week, open which you can see is gaping down in after hours. Probably key off of the 15 level and we'd have a three to one risk to reward, probably up into the high teens as high as 20, while risking probably a dollar a share down in the 13 area.

All right.. So that being said, I know I went fast.. I know I talk fast, but I want to jam as much content in here as possible. Feel free to re-watch the video but understand the biggest things, I'm just to review biggest things you're.

Looking for that box, checker.. Okay, That checks all the boxes. Other than that neutral on the good company closes at 52s. Okay closes at 52s closes near the high of the day, then gaps down and goes green in the morning..

That is one of the most consistently repeatable patterns and gives you killer swing trade entries on a stock like DATS. And again, even if, let's say so, say you had a different risk to reward and you didn't take profits at 1350. Seeing my gap up., I mean this thing could continue higher for quite some time. And if you, if you've, got a wider risk with a bigger goal, there'd be no reason to be spooked out of this..

You wouldn't have to take profits at 1350 because maybe you're risking a wider stop.. You know maybe you're risking three bucks a share because you've got a smaller position size and your target is more like nine bucks. You're going to hold out. For you know the low twenties et cetera., So weak open, read to green's the best morning.

Pattern for swing trade, entries., All right episode, five. Next episode, we're going to talk about the best afternoon pattern and, oddly enough you'd, be surprised.. I am going to use a different example in the next video, but the great thing about these patterns is they both work together, quite frequently., Great red to greens, become amazing, VWAP holds, which is that next pattern, I'm going to talk about. All right.

Everyone head over to stocks to www.trade.com/freetraining to get access to everything. Worksheets watch list, the video archive and we'll see you next time.