Hi Traders If you're new to this channel, my name is Shea AKA Humble Trader Welcome to the Ultimate Day Trading Strategies Crash Course. This one hour long crash course video will be very insightful for you if you're a beginner or intermediate. Trader Who has a little bit to some experience in technical analysis? Take a look at the video descriptions. There are five important chapters in this crash course.

If I had to start the journey over again from being a beginner to eventually becoming a profitable Trader This is the order I would follow in order to learn and master these time-tested trading strategies. So make sure to smash the like button and save this video to revisit and learn at your own pace. And remember to share the crash course with another person who needs it in my case. I'll be sharing this crash course with my ex-husband Mike Bag holder.

Yeah, he really needs it. Our first chapter is understanding, support and resistance. This is the foundation of day trading and swing trading. In this video, we'll go over the four steps to properly draw support and resistance.

Now let's get started. Finding the right supports and resistance levels is crucial and should be a part of the foundation for technical analysis. Whether you are day trading stocks, crypto, futures, or even Forex as a full-time day trader. I'll also be sharing some tips for utilizing these technical levels when trading short-term volatility.

So if that sounds helpful to you, make sure to gently tap the like button and you will magically get more support from me without the resistance and bad jokes. So what exactly are supports and resistance? Okay, no more jokes this time around. I Promise I Don't want to torture you again. Support levels are areas in the charts.

Historically speaking, when this price sold off to those same price levels, the stock bounced off and people came in to buy the stock. So that's why in a chart, you'll see the stock typically would have bounced out a similar area like here here and here many times in the past before. Because there's a market to support a stock whenever it is sold off to those price levels. Remember a market.

Whether we're talking about the stock market, crypto markets, futures, or Forex it's made up of buyers and sellers. So a support area is where more buyers came in to buy than sellers. On the other hand, resistance levels like these are price levels where sellers came in to sell the stock. So whenever the stock came up to these areas right here here and all the way up here, sellers decided to take profit and get out of their position.

And there were more sellers than buyers. Okay, so now that we all have a basic understanding of what support and resistance means, let's go in and draw the actual price levels step by step. Now, step number one: when drawing support and resistance, you are looking for the extreme highs and the extreme lows. So I'm going to charge over here.

Where do you see the extreme highs and the extreme lows. that we talked about, right? The very obvious extreme highs all the way up here. All-time highs around 159 dollars, You have another extreme high around the same area 155 and you have another extreme levels up here. Right here Here we are seeing like these, uh, these, uh, upside down v-shapes or or W shapes when you are looking on the chart so you can see this is the tip of the V shape and then you have another tip right here.

So those are the extreme highs and down here you see some of the previous levels as well, extreme highs here, highs here, and all the way up here. So these are what we call resistance areas. Up here you're looking for the most obvious levels, the highest levels that stand out and this will work the same way. When you are drawing support lines, you're looking for the extreme lows, so you can see here.

you can see like a V shape here on the chart. This is a support area right here, right the the inside, the extreme lows of the V shape, another one down here because you see and the V right here and then you have V shapes or W shapes. You know all these areas are support areas because that's the extreme lows Before the stock you can see bounced off once twice, couple more times and went up to the resistance area. So we drew out.

So up here around the 140 3 145s area, you have another support area because you have a small V shape down here, right? you can see this will be another extreme low. so that's another support area for the stock. The reason we want to use the extreme highs and extreme Lows the V shapes and W shapes is because we want to find the most obvious level that the market and the majority of the people see and use. We're not trying to find some secret hidden line on a daily chart.

It's the opposite, right? We want to use what the big funds, the big picture, big buyers and sellers use and use those levels with drawing support and resistance. Okay, so now that we have the lines based on the extreme highs and extreme lows, the next step for us, step number two is to make sure that these lines have touched a few candles at least two or three times in the past before. generally speaking, the more times a support or resistance line has been tested in the past before, the more powerful it would be and that would be the same case for resistance levels. You can see now that we're trading near all-time highs, there's a resistance level around 156 area that's been tested once twice, three times over here, so that's a pretty strong resistance and we are still holding up down here as well.

We can see a resistance level around this extreme height right here, right around the 122 123s area that's been tested once over here, second time again, and the third time that's when it succeeded and broke out above that resistance. So while you're on step number two, you can go in and adjust all the lines you've drawn from Step Number one. So I can come in here and move the lines around to make sure that they have indeed touched the candles at these two or three times in the past, the more touches or more contacts you get from the candles, that will be even better. Remember that would mean the levels are stronger like we talked about earlier and that's really the essence of support and resistance levels.

These are not some magical price levels and the candles Just Bounce staff was sold off for no reason. These lines the technical levels. They represent significant price areas that people decide to come into, buy or sell. So that's the reason we want to make sure to chart that out when we are day trading now.

Moving on to step number three and this is more of a very important tip. I have for the beginner new. Traders When you are drawing support or resistance levels, you want to make sure that you're zooming out to the daily chart or the weekly chart. I Know this may sound counter-intuitive or doesn't make sense since we are day.

Traders Sometimes we close out the trade in 5 minutes or 30 minutes, but it's actually very important for us to see the bigger picture a lot of times. I See many new Traders Focus on just the intraday time frames such as the one minute, two minutes, or even the five minute chart. But if you take into consideration all the support and resistance levels from the hourly charts daily chart. and if you are swing trading, you want to look at the weekly chart.

So remember always to zoom out and use a big picture when you are drawing supports and resistance. Now let's move on to step number four and this is another very important tip for the beginner. New Traders is to treat these supports and resistance lines as a general zone of buying and selling. It's important for you to understand that the support toward resistance levels you draw out or anyone else draw out for that matter.

it's never going to touch exact to the scent. Generally speaking, the higher price and the more volatile the stock, the bigger the trading range would be. And this is especially true for low float stocks. For example, you can see the support area for AMD This one's at 1 O2 but down here is around 100.

So for AMD Sometimes the support could be off by one or two dollars and that would be normal for the stock. However, if we look at a completely different stock here Tesla this one is a lot more expensive than AMD about three times more and the range for the support and resistance would be very, very different as well. It's a lot higher so on the charge you can see the support area here. I Would say that, say a thousand dollars.

There's a range between 1019 and down here 987 dollars, so that's more than 20 30 points range for this rough support area on the daily chart and it's the same. up here you can see this is a rough area of support for Tesla stock and this the low of this day was around a thousand one hundred fifty eight and down here the previous stay 1146. so that's the difference of 10 points, but it's still in the same area of support. Same thing down here for resistance.

Up here, the resistance was around a thousand one hundred or four and over here, right, same area of resistance. This one is a thousand one hundred sixteen. so that's where you get a range of at least 10 to 20 points for Tesla stock. Again, always sort out the support and resistance on the higher time frames, the daily charts, the weekly chart, or the hourly chart and draw out the most obvious levels, the extreme highs, and the extreme lows.

And don't forget that these levels should have touched three candles or more in the past before. This method of charting out support and resistance makes the charts very clean and easy to read when day trading. And that's all I need to day trade every single day. just simple support and resistance alongside with sometimes V WAP and volume.

So I don't need to rely on any fancy or gazillion indicators so that was support and resistance. Now that you learn the proper four steps, you have the right technical analysis foundation in place. But if I was mentoring you personally today, I'd say that drawing support and resistance alone would not make you profitable if you don't understand price action trading in the next chapter. I'm going to explain price action in three golden steps and there's at least one trading strategy for you to take away and apply to your own trading after this video.

So here you go: I'm giving you three golden tips for Price Action trading look out for Candlestick Wicks When trading breakouts or breakdowns, the golden reversal time and how to know the front side and the back side of the move. and one bonus tip on technical analysis if you stay till the end of the video, price action refers to the Rhythm A stock moves up and down in prices. Understanding price action is very important, especially if you're trading short term or any momentum or scalping. and also understanding price action and risk management are the two very important Milestones that really help me become profitable.

One was brand new to day trading. Price action Tip Number one: look out for Candlestick Wicks on the top and bottom when trading breakouts and breakdowns. So when looking at a daily chart for Bbvy here, you can see that on the daily. before this huge breakout, you see these candlesticks here that has these long vertical lines at the bottom here here and here on these couple of days.

Now this is what we call a lower Candlestick Wick When you see Candlestick Wicks at the bottom, that means the weakness on the stock is getting bought back up. What does that mean? That means a lot of retail Traders You know people on social media and uh, including Ryan Colon: they think the stock is really cheap so they want to buy it for a breakout. So if you also draw a trend line at the bottom of the daily, you can see that these Wicks they actually create higher lows meaning at the bottom of the wig on each daily candle is higher than the one before and that's technically bullish. As you can see, the stock is getting bought up around nine and ten dollars area for a couple more days and that's what led to the next breakout on high volume, right? You need people buying up the weakness to load up on the stock and that's where a lot of times when you see these lower Wicks on The Daily This is possible to lead to a giant breakout such as Bbby.

Now after the breakouts from around 11 all the way to almost 28 30 dollars you see on this vertical wig on the Candlestick on the top this time around here. Now if we look at the deity, this huge breakout with the almost 400 million volume day is this intraday chart right here. You can see this wig around 28 area if we draw a line here, 28's here. That's also the higher day for this giant breakout day you can see on this day.

You know when the stock tell the breakout for throughout the entire day pretty much and then it dumped from 26 to all the way to 19 at the end of the day. This kind of dump is what created this wick on the deity and this is technically bearish. So this is the opposite of what we just talked about. Wigs at the bottom here on the deity means the stock is getting bought back up and you know it's setting up for a big breakout.

However when you have broken out on the daily, but you end up with a wick like this a giant and they sell off from 28 to 19. this is technically bearish and a lot of times you're gonna see this retest of the breakout level the next day. Now moving on to the second day of the breakout, you can see this 28 dollars line here right? We know that that's gonna be the resistance from the day before, and if you draw this line around across, you can see that's the same area that's being tested at the open. However, we're looking at the intraday chart here.

Now you can see another awake here on the first five minute candle of the open. Another week. Here, that means a stock Actually, you know, successfully broke out within the first five minutes. However, you end up with a wick.

That means the stock broke out from 28 to 30 dollars that you can see here, but is unable to sustain the breakout. Now, why does that happen? And this is really why price action is so important when you see this kind of false breakout. That means first, it's a short seller's getting squeezed, and unfortunately for the stock Bbby, once you worked out the short sellers, there's no real buyers coming in to buy the stock. right? If you think about it, if this actual buyer is buying above 28 29, then the stock should be holding really well above the 28 dollars breakout point.

So that's why you really need to look out for these intraday Wicks especially when they're lying up with a daily Wick from the day before. So that's the reason. After multiple attempts to break through that 28 dollar area once at the open and once again around 10 o'clock the stock was still unable to hold above 28 and It ultimately unwinded. Um, to the downside and this kind of price action on the Candlestick Wicks on top and bottom is especially true of meme stocks because they are really socially driven meaning that all the buying interests are mostly from the retail.

Traders and I Think we all know by now the retail Traders are the most emotional Traders out there and you can see the same thing on AMC One of my favorite stocks to trade. Uh Wix on the top you can see eventually led to the unwind, especially when you see multiple wigs like this. The taste testing in the same area multiple weeks on this day here with the Bbby breakout and once again, for you know, a couple more days following when you see Wix re attempting to break out once again and failing to break out. That's ultimately going to lead to unwind to the downside.

I Have a little challenge for you guys, comment down below with a recent stock that you traded whether it's a meme stock or a stock like Tesla and apply the price action for the Candlestick wigs that you just learned. So find the time period on your chart and let me know what you find. then go back, test on the daily chart with a price action tip you just learned and let me know what you find on your stock in the comment section below. Moving on to price action tip number two: The golden reversal time.

So this seems to happen a lot when was brand new I would have a stock that I'm watching. For example AMC Here you can see at the open is just dumped from 24 all the way to 23. and I take it off my watch list and only later to see it bounce from 23 all the way to 24 almost 25 dollars. And that's because a lot of times when stocks sell off from the open, there's that golden reversal time around 10 30 to 11 o'clock Market time.

Now the stock will bounce. so so this is a perfect example here. AMC Here on this day sold out from 24 to 23. Now if you look at the bottom around 10 o'clock to 10 30s area, that's when the stock started bouncing and this is a very decent balance from 23 tens all the way to you know, almost 24.50 So we're talking about a dollar bounce here and so this very simple reversal bounce strategy is what.

I used to trade part-time before I went to work. this is like almost seven eight years ago and remember what we learned in tip number one with the Candlestick Wicks at the bottom if you draw this line around the 23 dollars area around 10 10 30. this is also matches with the daily chart with all the wigs at the bottoms are. so when you have multiple factors lined up for a bullish move, reversal to the upside such as 10 30 reversal time that we talked about and tip number one the bottom wick on the daily chart, then this is worth for a bounce on the long side.

Price Action: Tip number three Understanding front side and back side of the move. This tip is very important if you are trading small cap stocks especially those low float Runners such as Megl And whether you are usually long, biased and sure buyers on these small caps, you definitely want to learn this. This is a daily chart of Megl. This is a very low float stock.

As you can see recent ipo'd around 50 dollars went all the way to over 200 dollars and sold out from two hundred dollars down to you know 12, 10 and 9. This is a true piece of stock that you know a lot of times can actually create a lot of momentum to the upside. So on these kind of small cap sell-offs a lot of time you'll get a giant day with a lot of volume such as this one 75 million volume traded and this is what we've called the first. Green Day This is a day where the stock went from ten dollars to 18 in dollars.

Breakout! And this is the day we're talking about on this day. The stock. You know because I have a small gap of pre-market and Consolidated around this area. Here you can see that matches with the Daily Support and actually broke out to 18 to a close of almost 19 21 after hours.

Now if you zoom out on the five minute chart which is what I like to do if you draw a simple trend line here. if I draw it from the lows from the first day first Green Day of the breakout and all the way through matching the matching the lows and all the support intraday near Power Hour Through the pre-market area over here you can see this is a giant trend line to the upside and the higher of the pre after hours is around. Let's just call it 22 dollars here. Now a lot of times when the front side of the move is if the stock continues to hold this trend line here.

So technically speaking, if the stock is going to continue breaking out holding the front side of the breakout, then on the second day here, it really needs to hold above the twenty dollars, twenty one dollars and ideally over the higher day from after hours. So it really needs to hold that 22s. So if you're loan biased you, that's what you want to look out for. You want to see the stock holding this giant trend line to continue the breakout to higher on the daily.

If this thing had held it has upside above 22 you know all the way to Thirty forty dollars and above. But if you're long already, it's really important to watch out if the stock breaks down the trend line we talk about. You can see on this day the stock had a false breakout another week, again on the breakout in the morning around 22s and rejected and break down below 20s and one to nineteen dollars. Now it's actually really common for these small cap low floats, volatile stock to break out and break down.

but if it stays below this trend line usually I look at after you know 20 minutes or so. If it stayed below this, then that means the front side of the move is broken. it's over and what follows is usually the back side. But if you are short buyers like I did on this Megl chart, this is what I look for.

This is a kind of signal that tells me to get in for short entry on the stock. So that's what you can see here. Once this Megl broke down the front side and started forming lower highs. twenty dollars rejection.

That's why it sold off all the way to 14 over here. And if you look at 14, this is a day of the prior day support that led to the breakout into the close and into the after hours breakout. So that's why it's You know you get a pretty decent move. We're talking about twenty dollars all the way to 14 and then in the next couple days if you zoom out you can see okay, back everything all the way down to ten dollars where it came from.

Now if you stay through all these three price action tips first of all, thank you for staying with me so far. And here's the bonus tip I have for you, especially if you are relatively new. We all know that technical analysis and support and resistance is crucial to trading. However, as Traders we need to understand that support and resistance they can be subjective.

So for example, if I was a long bias Trader I'm looking at this green line here 2460 Support Like we said long Wicks at the bottom of the candlesticks intraday. so I see the support and I want to be able to just bounce it for a dollar Two dollars towards a resistance around 28 dollars. So I will loan the stock for a quick scope. Essentially, this is a trade where if I got in here I would be really quickly selling into this wixier 26 and 28 if we get there.

So all I'm looking for is a two dollar bounce I can be very bullish and my time Horizon is only about 10 minutes. However, another Trader who's more short buyers can be looking at the same chart and see a short play. To the downside, like we said, when the stock rejected at 28 dollars here daily week here 28 and also intraday wigs this red line then this short seller may want to swing it for a couple of days. Looking to swing it all the way to a downside from 28 to you know, maybe 23, 20 and Below to 11.

Both of these Theses are valid. So that's why it's important to form your own trading plan with the expected time Horizon and stick with your plan using your own technical analysis and price action to help you out. So that's the reason. I Always stress on this channel.

Do Not follow chat room alerts or live stream trading or copy trading because you simply do not know the person's trading plan or time. Horizon So what do you think Do you think that now that you can put support and resistance along with price action? trading things are finally starting to make some sense. Let me know in the comment section below, none of the basics are covered. It's time to bring out the top shelf strategies.

That's right, it's time to learn how to buy the dip properly and how to time your buying entries successfully when trading. This is one of my personal favorite strategies. Have been trading since 2015, so it's a time-tested strategy that you don't want to miss. Let's finally dive into the market recap.

So if you kind of look at the market on spy, we're finally starting to Rally off the lows. So if you think about it, the long strategies on buying the dip would naturally only work once the market. The overall: Market the S P 500 starts bouncing So on this side really extended red days. there's literally no point trying to to buy the dip or going long on any of the stocks.

So that's tip number one. Always check the market sentiment. So today the market you know had a decent balance. The last couple of days were bouncing off the lows from the the rug.

Pole from the FED meetings. Um, but we're seeing some decent reality you can see well up for continuously for one, two, three, four days. So when I see that happen I'm looking at a lot of what I call market stocks meaning the large cap stocks that follow the market quite closely. So it has to be the large cap stock.

cannot be the small caps, so that's your tip. Number Two Stock selection. It has to be the large cap stocks that you're trying to buy the dip on. Because when it comes to small caps, their strategies and the long strategies set up specifically is a little bit more nuanced.

So we're gonna have to talk about that in another video. So back to stock selection. When you're trying to buy the dip, you want to pick the large cap stocks that has shown you at least on The Dating chart that it has ability to bounce. So if you look at Nvidia which is one of the first stocks I started loaning today around 166 I was trying to hold on to potentially to 169 170s and higher.

This one I only ended up catching about almost two points from 166 to 168. So you can see I'm bouncing this around the 166's area. Now if you look at, draw a line on the daily chart, you can see this whole 155, 160, 166's area on a daily chart. If you kind of zoom out right here, it's kind of like the bottom of the daily chart where the stocks this stock has specifically in the past um shown that it can Bounce from 160s all the way to 190.

So we're talking about potential of a 30 point bounce at least on a daily chart I don't I don't think we're gonna get that in one day, but for us day: Traders were trying to capture the bounce for a dollar two dollars, sometimes three, or four, or even more when the market really rallies. so that's an important key. takeaway. Stock selection: large cap stocks that can actually bounce.

No trashy small cap stocks, and of course, the market sentiment. You want to look at long Lane and buying the dips when the market started to bounce. So this is the first trade I did alongside Nvidia and this one, uh, you know I did okay, but I didn't time it that well because I want to show you the second one Neil this one I timed a lot better. Now if you look at the intraday chart of Neo and Nvidia I know there are different sectors once a Chinese stock one's American Stock but if you look at intraday, it kind of has a similar chart structure because if you kind of look at both of them, both of them gapped up overnight with a market Nvidia Capta from prior days closed 177 to 174.

it's pre-market sold off to the 166 area I was looking at for the long for the bounce right? You can see this is sold out from you know, like on almost 10 points. Eight points to a downside before the bounce. Now for Neo it's a very similar story if you look at the way it gapped up, it gapped up from priorities close 24 to 24 60, 24 70s so decent amounts of Gap up. Um, and then this thing also sold off at the open so they both react similarly to the market.

So whenever I see like a market sells off happens after a significant Gap up on the individual stocks, usually the best time. Oh I actually don't know if I want to reveal this is like one of the secrets. Okay, these are some golden tips that not a lot of people talk about. So if you're still watching here, make sure to hit the like button and comment down below by the dip.

So I will know that you are actually watching this and I'll make more recap videos with more of these golden tips in the future. Now the big difference. So even though the chart and entries are long, they are all long Neo and Nvidia even though on the surface they may look quite similar. But what differs is the timing so you can see I went long around like this is what if you look at I know the dash charge is like really small but this is almost uh, just above 10 o'clock 10 o'clock and this thing bounced from 166 to 169 and it pulled all the way back to 167s around this What? 10 30 to 10 40.

So you can see the big bounce on Nvidia is actually around 10 30 to 11 o'clock Right here you can see it bounced from 167. this is a big bounce to 170. now Neil on the other hand, I I'm saying that this is a better executed trade because the timing is better. You can see this one actually executed around 10 30 and held it for the Bounce from 23 dollars all the way to 23 20s I Sold some re-added back to both sides around 23 tens and sold it into 2340s.

So my ultimate price Target was actually 23. 50 2360 V-wap area but I caught as close to 23.44 so that's that's. pretty good too. But the big difference here is the timing.

So there's something about being 11 10, 30 to 11 o'clock that is usually the golden time for bounces if you are loading stocks and buying the dip right. We're talking about buying the dip on the huge pullback that we're seeing right now. Neo You can see Gap up sell off Nvidia same thing Gap Up sell off. So that's a golden time to buy the dip whenever you see the stock sell off after a huge gap up.

Now that's not the same as buying the breakout. Buying a breakout is a losing strategy in this kind of Market condition. Just just don't do it I Know it worked well in 2021 2020, but you know if you buy the breakout in this kind of Market in 2022, Uh, you know, like eight out of ten times you're gonna get a rug pull. So that's the third golden tip and not a lot of people know about this is the 10.

30 to 11 o'clock is the perfect timing to buy the dip and on these large cap stocks, you can see it even on the stocks that shorted. So I went long on Neo and Nvidia the stocks that shorted are Alibaba and chewy. Notice that my short entry is a lot earlier on than my lungs you can see I showed it Alibaba from 120 starter I got a little bit chopped up here but ultimately added into the viewer. Bouncer on 120s and down here 119s and shorted into the lows to 1 1780 and notice when I've covered all my shorts around here.

if you look at a time frame, this is also 10 30 to 10 40. so that that's I covered everything here because I know that it's about to bounce. So even though I didn't go long on Alibaba The idea: The concept is exactly the same right? if you're a shoot seller, you want to cover when you know the buyers are coming in. so that's going to help you protect your profits if you are short.

Now one more example here is Chewie and notice all these stocks are in different Industries they're all just large cap stocks. so Chewie same idea I only went short on the stock but the balance also only started to happen around 10 30, 10 40. coincidence I Think not so chewy. This is also one of my favorite strategies, but it's on the short side.

It's when a stock is also gapping up on very thin volume after, you know, multiple days of a run. A lot of times you see kind of like a rejection of the pre-market highs around 40 40s over here a little Wick here I was actually late I got in around 39 670s and this thing just fell off to and tanked um to Prior days close. So I covered some of it around 38 90s and all of it around 38 20s. The one thing I could improve um, um, this.

uh, the short is to hold it all the way to 10 30. kind of like what I did for Alibaba So that would you know, improve my profit ratio for the short setup. So as you can see, it's really beneficial to understand both long whether it's buying the dip or buying breakout and also the shorting because you want to balance the two psychology right. Remember, as a short seller, you want to cover your shorts when the buyers are coming in.

and if you are a buyer, you want to buy the stocks when the shorts are covering when the shorts are getting squeezed. And that's just how the market works. So just to recap on these three golden tips for buying the dip strategy. that's working out pretty well in the current market.

So number one again. Market Sentiment: The market needs to be starting to bounce if you look at the S P 500 or the QQQ it needs to show you a bottom on a daily chart and not a folding knife. So if that happens, if you see a folding knife, do Not go long. Second tip is a stock selection.

Stop trading these trashy penny stocks. They might go up, but they also might go down so you know whether they go up or sideways. It's anyone's guess. It's the large cap stocks that can show you.

Historically, they have a good chance of bouncing off the lows. So that's tip number two. Tip number three is the golden time frame of 10 30 to 11 o'clock usually that 30 minute period Give out take is the best time to go long and balance the stocks so everything is still true after watching this video. However, if you are starting out this year, I would adjust it a little bit due to a lot of uncertainties with interest rates directions this year.

I Think you're gonna see many more emotional overnight Gap ups and GAP Downs in the market this year, which is why I Think it's very essential for you to learn the next strategy to properly trade the Gap up and gap down I Know it's been a long video. If You stuck around for this long and finished watching Buy The Dip Strategy chapter. You are a real one. Let me know by commenting: Artichoke Dip down below because that's my favorite kind of dip to buy.

Alright, there are two key factors to this: Gap Trading strategy. The first one is based on short-term technical analysis, and that is whether we see a gap up or a gap down overnight. Alright, for those who are not familiar with this term, an overnight Gap refers to a drastic increase or decrease of the Stock's trading price during the pre-market sessions compared to the previous day's closing price. Let's look at this example here: Dash Doordash stock You can see in the previous day's closing price.

On this day, the stock closed around 75 dollars up here. Now the next morning overnight, you can see the stock gapped down all the way down to around 69 68 dollars pre-market So that means the stock has sold off, gapping down 10 percent overnight. Generally speaking, a technical gap down like this one is not enough to indicate whether the stock going to Rally higher or going down lower. But in this specific case, I'm Dash dock.

This is still a valid short strategy and we're going to explain why later on. Now that we understand what a technical gap down, it should be very easy to understand what a gap up is looking at the stock. Tdoc Teledoc AKA one of the many bag holding positions I mean disruptive Investments At ARC Invest, you can see in this example Tdoc, the previous day's closing price was over here, around 38 dollars and 70 cents. Now the next morning the stock got gapped up pre-market to around 40 dollars and 40 cents.

That's almost a two dollar per share overnight Gap up or a 5 Gap As you can see, this setup overnight is very different from our previous example of a gap down on dash stock. So for Tdoc this overnight Gap Up even though it's purely technical in the current market environment, this does set up for a nice short for this Gap trading strategy. So on this Tdoc specifically I was looking at the 40 to 41 dollars area for short entries and looking forward to break down some pre-market support and eventually to Gap fill all the way down to Prior days close where it came from at 38.70 I Personally messed up on the straight as you can see here on the charts I was right on the short thesis for this Gap up strategy. However, just off on the timing and unfortunately I couldn't hold on long enough to see the stock eventually break down.

But the strategy thesis was correct. You can see I traded the same strategy on all these stocks in the past before such as D-wac Nvidia and AMD now You Must Be Wondering but Shay this is not what you said last year. Last year many Gap UPS have broke out higher a good Longs and all the songs went to the moon. The sentiment is much different now unless you want to end up working at McDonald's Stop Buying Breakouts.

Nothing wrong with McDonald's by the way. I still love the Oreo McFlurries and Fries yes at the same time and no I'm not sponsored by McDonald's which is why I have to ask you to smash the like button and I promise you I'll share. Now pay attention my fellow humble Traders as well. About to dive into the current market Outlook and trade their psychology I Think it's very crucial that we understand the why were the psychology behind this huge gap up? So Gap Downs Especially if you're trading short term in a current market environment.

Almost all the big moves this year are driven by one thing and one thing only fear: the fear of oil prices spiking, the fear of of negative economic data, and the fear of inflation and the list just goes on and on. Fear is a much stronger emotion than confidence or optimism. That's the reason the Bulls take the stairs and the Bears take the windows. There isn't a lot of confidence in the market, and that's why with a lot of breakouts and overnight Gap UPS You'll see stocks sell off more often than not.

I've been thinking of posting regular Market updates on all my social media accounts so I can share my thoughts on the market with you guys. So please comment market update down below. If you would like to see them, let me know in the comment section below and make sure to refer to the description for my real social media accounts. So earlier we talked about the first factor of the strategy and it was the technical Gap up or Gap down.

The second factor to the strategy is whether there is negative or positive Catalyst Let me explain as I've talked about in the recent trading recap videos, there are large cap stocks that make overnight moves with their own company Catalyst It could be earnings potential deal going through or the newest drama involving Elon Musk For example: GameStop Dog gapped up and moved higher overnight after announcing they are doing a four to one forward split or doordash. In our earlier example: gapped down because of negative news. The Amazon is making a move into their market and guess what, no one dares to fight Amazon especially after seeing Jeff Bezos badass outfit and a yacht over here. On the other hand, there are stocks that do not have their own company specific news.

For example, the Teledoc overnight Gap up we saw earlier, it was gapping up to what we call Air Basically, the company did not have strong Catalyst to support this overnight. Gap up. It's a contributing factor to the shorts thesis on this Gap trading strategy. Take a look at another example here: Uber As you can see here, the stock gapped down overnight due to the same Catalyst as Dash Amazon takes a stake on GrubHub and extends the food delivery service to their Prime Membership This move from Amazon would directly steal market shares from companies like Uber and Doordash who are operating in the same food delivery space.

Therefore, this Uber stock reacted negatively with a gap down. Prior day's close was around 22.30 Pre-market excelled off into about 21.80 You can see I'm at church here. The strategy I like to use on these gap down stocks is to wait for the balance in order to short into it with a better risky word. So on this Uber stock even though pre-market is trading at 21.80 I waited until the spike to test 22 dollars and ideally I was actually waiting for higher around 22 20s to short into it and my price Target will be the pre-market support around 2170s and the lows of the day around 2140s.

eventually probably to 20 one dollars. It's very important that you wait for the bounce for the right risk award to show it into it. Don't be that person who shorts the stocks like these on weakness at pre-market support or lows of the day. Sure, maybe that might work once a while, but in the long run that's a very high risk entry.

I Will repeat: don't shoot it at the bottom over here, wait for the bounce and then write it down and collect your profits. Here are a few key takeaways to remember about this: Gap Trading strategy. Especially on the short side: the higher the overnight Gap up is, the more likely it is to sell off. The lower the overnight gap down is the higher you should wait for the stock to bounce in order to show it.

Both of the above tips are all based on technical analysis. However, please do not forget about the third key takeaway. the fundamental Catalyst Because technicals tell you when to enter. But Fundamentals tell you the thesis and how hard to hit the stock.

this Gap Trading strategy we just talked about. You will see this play out within the next couple of weeks now that earnings season is approaching, so you best be prepared to trade all these overnight. Gap ups and GAP Downs that we are about to see I Know personally that I'll be utilizing this Gap Up and Gap down strategy a lot in my own trading this year. Before we move on to the next strategy involving my favorite indicator to trade with.

If you are liking everything so far, but you want an even more in-depth trading education program along with one-on-one coaching in the community to trade with, then make sure to check out the Humble Trader Community down below. My next video will take you from a Padawan to a Jedi master. I'm about to tell you about my favorite trading indicator which is V-wap This is the key to many of my trading strategies. I'll be showing you today how to use V-wap as key level in today, how to maximize your profits with V-wap and last but not least, how to use V-wap to spot short trap consolidations.

V-wap is a very powerful indicator. It stands for voting weighted average price. It's very powerful for Traders because it takes in both price and volume into calculations. It's not like the moving averages like EMAs and Smas where the formulas only average out the price.

Most of you guys probably know by now I Like to keep my charts very clean. All the indicators I use on my charts are this blue line here which you can see. this is the V-wap over here I Use V-wap and Volume and that's all I Use So just a quick overview here. if a stock is trading above V-wap so you can see the stock ape.

AMC Preferred Equity If the stock is trading and holding above this blue V-wap line, then the stock is perceived as bullish that's due for a bounce. Now on the other hand, if it's saying below V web like the day IPO Um, you can see the stock broke down V-wop that blue line and stayed below it all day long. then that's perceived as very weak in the most. General sense you want a short stock that's below V-wap and long stocks, it's holding above V-wap So the first tip I have for you is using V-wap as intraday key support.

Now looking at the stock here: Indo This is smoke cap sock on screen here. very low float stock. it's a former Runner Previously on the data you can see it ran multiple times in the past before over here. You know in this day it went from nine dollars to all the way to 70 and 80 dollars.

So this baby can goal now. On this day the stock actually gapped up with the rest of the energy stocks. Now when the stock broke above that nine dollars area which you can see here on the daily chart then this this is what we call a daily breakout. So you can see the stock broke out above it right at the open you know broke out from 9 to 950 and where did it pull back to it Pulled back to V-wap you can see it pulled back a little bit to 917s, may try to attempt another new highs 980s and each time it pulls back it's holding well.

Above This V-wap Indicators: you can see Tony 930s and slowly Consolidated making higher lows, you can see a bounce out V-wab create another new higher low here 960 and that's when it broke out. Squeeze through the higher day and into the 11th. So this is one of the best ways to use V-wap indicators. First of all, you want to make sure you have a daily breakout on the chart.

and this applies for both small cap and large cap stocks and especially early in the morning if you see the stock is breaking out but holding back just a brown V-wap holding higher lows than a lot of times. That's a great entry on the long side and you can ride it to the moon. Okay, not to the moon, but to 11 our next leg breakout, you can see a pullback once again. This time around it held well above V-wap and made another breakout move to the upside to twelve dollars.

Like we just said, it works just as well for large cap stocks, if not even better. Now we're looking at Oxy another Energy stock. This stock was extremely strong. out of the gate.

same idea here. you can see it broke out right above yesterday's highs of 71 dollars right at the open. Look at the volume down here. extremely strong.

So we have a daily breakout with strong intraday volume and you can see the stock you know held well above V-wap for each of these five minute candles. This is how you know the stock is. This is a strong breakout and you can use any dips towards a view up area as your long entries. Now if you're more short buyers which you guys know sometimes I Am for the small Cap stocks, this is not a chart you want to short.

I Saw this thing this morning I did trade it on the long side um and I did tell everyone hey, don't short this Especially when it's a large Cap stock you can see every single dip towards V-wap is getting bought back up. every single attempt. to break down to word view app, it's getting bought back up. That just tells you how strong the stock is.

so if you're a short buyers, you don't want to show this thing. Now This brings us to tip number two using V-wop to maximize our profits, especially when the stock is breaking down. You guys know that I Love shorty meme stocks whether it's Bddby or AMC in the past before. And the reason I love it is because once the stock as you can see breaks down V-wap it stays extremely heavy and a lot of times they fade all the way into the clothes.

So looking at the stock here Bbby, it's a meme stock that's been getting a lot of attention in the last couple weeks. You can see the stock. This is this red day down here. the stock has sold off from all the way 26 dollars down to 18 and now gapping down to around ten dollars.

Now this day actually traded first on the long side for the stock I loaned the stock from ten dollars and sold into 11s and twelves and once I see the stock staying heavy and breaking down red to Green area and went red on a day and then now it try to bounce off V-wap right. You can see earlier we talked about when you have a breakout that V-wap should be your bounce area. but in this stock it was extremely weak. You can see it tried it barely bounced above the V-wop It bounced maybe like 30 cents from 10 30 to 1060 and it just cannot hold above it.

So once it's broken down V-wap that's my sign that hey if I was long I needed cut it now because I know that once the stock a stock like this, it breaks down V-wap it's likely to fade all day and staying below it. So that's exactly what happened on this five minute chart. Bbby you can see once I build on my long side it dumped below V-wap from 10 30s all the way down to 980s. It attempted to bounce one time that V-wap now acts as resistance.

You can see it tried to test out Blue Area here 10 30s but it's unable to even like retest and reclaim that area. So that's how you know the stock is extremely weak so you can see that's how the stock you know rejected that view up area multiple times and continued to downtrend all day. It's the same idea the next day as well. I mean if you look at the next day which is this morning had a small Gap up overnight you know try to break out with the rest of the market.

You can see a lot of Wicks around the top end of the Candlestick and if you learned anything from While Price Action Trading video all the Wicks on the top end of the candle especially around resistance. That means the stock is getting sold into. That means it's weakness for the stock. So these main stocks AMC Bbby and now I'm sure ape they'll trade very similarly once they break down V-wap they fade all day.

So if I was short biased to maximize my profits I would try to write it out for the entire day on the short side and in fact I've actually swung short AMC multiple times for multiple days. The next tip we're gonna talk about is using V-wap to spot short trap consolidations. This is something we've seen many times, especially with the low float. Runners the meme stock Runners A lot of times this is exactly what led to the huge breakout.

so that's why it's very important to understand what short traps are and how to use them to your advantage. But before you go there, make sure to trap the like button just like how my ex-boyfriend almost trapped me. What? But don't worry I escaped so things are all good, but remember to smash the like button. So speaking of short traps, I Do think V-wop is the best indicator to use for for spotting this this kind of price action.

So looking at Ape now: AMC preferred shares today, especially when it started breaking down V-wap that's when I started getting it short. so I was short The stock I did cover some around 660s, but I did think that hey, since staying below V Web like we talked about, it looks like it's gonna fade all day just like the Bbby and AMC example we talked about. However, if you go to a two minute chart now on on Ape, you can see no yes, it dropped all the way down to 650s, bounced back to 690 and slowly faded down lower. Now a lot of times when you see this, you see the stock holding a double bottom.

That's what these like you know Meme stocks. They usually each how they trap you, they hold the they have a small false breakdown from 654 down to 649. you know, take out, some stops, take out some weekends from the retails and then that's when slowly reclaimed back to V-wap So a lot of times they go straight back on on really low volume so you can see when from 650 up to V WAP 690s you know I had to stop around like seven dollars area I didn't get stopped out I was thinking okay, it might be a fake out. You know that V-wap could act as resistance like we talked about earlier, but no, this thing actually breaks down a little bit and held a higher low.

So what higher low looks like is this low right here? If we kind of just draw a line here, this low area is higher than the previous low the double bottom. So email if you go to the five minute and draw a trend line. This is Tech this low. the higher lows is forming below view app.

It's lower than the one before. So a lot of times this is how you spot short traps when you start seeing that on the higher time frame. it's creating these higher lows and reversing the trend after the stock at Double bottom. But a lot of times the the rewire reclaim is a Telltale sign.

You know when's it when you start doing higher lows below V-wap and breaks through it? That's when I got stopped out. So I'll still show the chart right here. I Had to stop right here around 702 7 10s. It was a good stop and you can see once the stock broke out above V-wap and I stopped out thank god.

Um, you can see the squeeze do the higher day to 740 750s. if I was still stuck short I would have gotten squeezed out. So this is how you know it's a short trap. They break it down to seem like it's really weak.

You know, avoiding extended period of time from Uh 10 50 all the way to you know, an hour 10, 40, 11 And that's when it started breaking out. Short traps like this usually stayed below V-wap during the middle of the day. So that's why around 11 o'clock 12 o'clock That's like the prime time for short traps. So this is a good example here.

and the stock actually held above V-wap for the rest of the afternoon. You know the view up around seven dollars, seven to tens area. It held really well so they wouldn't be surprised if it gives another secondary breakout move the next day. Now back to the stock.

Indo We used earlier as an example. um, the low floater Energy stock. So we talked about the breakout earlier to 1250.. now a lot of times when you start to break down midday looking like it's weak like we talked about breaking down below V Web these like low floaters.

they're really good at trapping more shorts. I mean it's a low float Stock A Lot of times it does attractive short sellers. uh me being one of them. Not today though I Saw this short trap I'm just like you know no there's no way I'm shooting this so it breaks down the web and actually you know try to create like a lower high making it look and not very bearish looking like okay it's gonna form a high lower high around here you can see like if you use in technical analysis you'll think that oh this thing is you know this is the higher day now it bounce around Vuap to test the lower highs and now it looks like it's gonna be another low high and start breaking down.

but no actually what it did is it held the lower the higher lows below V-watt So This Is How They trap you if you assured buyers you want to be very careful because in the middle of the day you can see coincidentally when they were trapping you can see down here the volume is extremely low so once again higher lows on five minutes below V-wap around midday lunchtime and low volume. That's when you want to be very very alert if you are short biased because otherwise you can get trapped once again once this thing reclaimed. Overview app around 130. that's when it broke out and went to test.

Twelve dollars again Hopefully you guys enjoy these three tips for how: I Use the V-wap indicator to use as intraday key levels to use it to maximize my trade on a short outside and to use it to spot short trap consolidations especially midday. Why? Master Trading with a V-wap indicator Nothing Was The Same ever again. This is something I still use every single day in my own trading. If you can understand and properly apply these five Concepts and strategies, not only can you level up as a Trader but you're also destined to lose your social life because you're about to be very focused on your own trading in the next couple of months.

Come on guys, social life is overrated I Hope you enjoyed this master class on technical analysis. Make sure to like the video and subscribe to keep an eye out for even more lessons to come. If you want to continue learning, don't worry I Got you? Check out the beginner day trading playlist on my channel! I've made over 20 free video tutorials with step-by-step detailed lessons to help you get started on your trading Journey But if you're looking for even more accountable quality including one-on-one coaching and the community to trade with, then make sure to check out the Humble Trader Community down below. Thank you guys so much for watching as always I'm the Humble Trader and I'll see you guys next time.

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