Welcome back to episode five of Swing Trading: 101 everyone.. I am lead trainer with Stacks To Trade, Tim Bohen, hopefully you're enjoying the entire course.. If you happen to stumble on this video out of sequence, the best thing I can tell you to do is head over to stackstotrade.com/freetraining or hit the link in bio drop. Your email, you'll get the archive.

You'll get future courses past courses. The sheet we worked off of the worksheet, which I think is the most powerful part of this whole course get the sheet. Please just drop your email in., And then you also get a weekly swing trade watch list in your inbox. Every single weekend.

All right. That being said, let's get to work. So today we're gon na be talking about the best afternoon pattern for swing trade entries. Okay.

So I got a different stack for you today, but we won't do another sheet, but trust me, Gogo G-O-G-O was an earnings winner. The other day. You can see this big gap up in close near the high of the day.. It's also internet related.

It's also a breakout, they're, actually profitable.. You know you can see just speeding through the sheet. It checks a lot of the boxes.. So this morning go back to my screen here.

You can see this gapped up from 12.50 to 14.50. That's a big move, $ 2 move on a $ 12 stock. That's a pretty big move and a lot of people might be like `` Whoa. It's quote unquote up too much.'' Drives me nuts, especially in the post 2020 world.

When people say stocks are up too much, but anyway you might be like ``, Hey. I don't wan na jump in in the morning Tim says: wait for afternoons, especially on these higher quality stocks. What am I looking for for confirmation ?''? So what you're looking for is that Hold of VWAP? You can see that right here still pulls back several times, but consolidates and holds VWAP. If you're not familiar with VWAP hit the archive.

Okay, I've probably got 50 videos talking about Volume, Weighted Average Price and why we care., But that being said it held VWAP here in the morning, spiked up pulled back at noon but again held VWAP.. Now, what's the number one afternoon pattern VWAP hold high of day? Okay, So that's you know. Basically I try and use this jargon to you know as shorthand to kind of cut down on the number of words to get it out of my mouth and I get a little verbose at times.. But anyway, we got a big gainer earnings, winner box checker, as I like to call them.

That's held VWAP all through the day.. That means it's bullish. It means the buyers are in control'cause every time it tests VWAP it holds.. That tells me buyers are in control and there's a good chance.

The stock is going to continue into the week or continue into the end of the day and continue into the next day, the next day, et cetera, especially when we got that 52 week breakout.. So you can see once it held that VWAP it breaks out to a new higher day at 12:30 PM, which is the afternoon. That would be your entry, probably more like 12:50.. You know again.

I talk about fixating on whole dollar half dollars. So let's say you took a 12.50 entry, you would risk a VWAP fail which at 12:45 PM would have been 14 or I'm sorry. I said 12.50. 15.50.

Sorry, 15.50.. I was looking at the wrong spot on the chart. So 15.50 would be your entry. At that time.

Vwap was at 14.75. That would be your risk. That would be the point you would stop out at if you're, using a three-to-one risk to reward methodology. That means you to have a goal of 225., But then you can see Gogo after breaking the high of the day.

In that 15.20 15.50 area never got anywhere near back to VWAP, so you would have never been anywhere near getting stopped out of the stock and you can see it just steadily grinds higher and then nice kind of vertical move into the close.. That tells you there's probably a lot of short sellers, involved.. Okay, when you get a slow grinder like Gogo like this, you know I mean all through the afternoon: it's gradually uptrending, but it's not vertical. Then you get a vertical move into the close.

That's great confirmation! It stayed long the stock and hold for continued gains, because, ultimately today, if you look at the S and P 500 up here big down day, I mean ugly ugly couple back to back days and here you've got a stock breaking out and squeezing into the close. You know you've got some shorts, which are always fuel to our swing. Trades. Okay, Listen, I'm a little dubious of Gogo myself.

I fly a lot and the WiFi never seems to work, but they keep making money.. They keep getting my 20 bucks for an hour flight and I can barely send an email so kudos to Gogo for taking all my money. But anyway so shorts love to short the stock, but great close here new 52 week highs you'd. Never you know you never would have gotten stopped out., But then vice versa.

Think about if the trade didn't work say this thing did pull back. You'd be losing 75 cents and right now well into the close. You would have been up two bucks, a share over two bucks, a share, and I expect this the gap and go as well tomorrow.. So look for those criteria, all of the box checkers.

So this thing checked all the boxes yesterday checked the boxes. This morning. Big gap up, but you don't want to chase you wan na wait for the stock to set up. So you got number one big gap up and a box checker number two.

Every time it tests VWAP it holds number three. You get the confirmation, when you get an afternoon high of day, break risking VWAP three-to-one risk to reward Gogo played out nicely and again this. I expect this to gap and go as well tomorrow.. So look for all of these criteria and I tell you you will see this repeat and repeat, and it repeat, because once we get afternoon confirmation, it's such a high likelihood that the stock is gon na, do exactly what Gogo did.

All right - everyone. Hopefully you enjoyed that, as always, like, I said, head to stockstotrade.com/freetraining, to get all of the worksheets to get the watch list to get the past archive and in the next video we're gon na be talking about the best order type to semi-automate your trading.. So if Gogo was your number one idea, if you were looking like, let's say at 11:00, AM you were looking at that 15:50 area for an entry? I'm gon na talk about using an order type to get you in at that high of the day when you don't have to be sitting at the computer., So check out episode, six check out stockstotrade.com/freetraining and we'll see you next time.