Today, we're gon na be talking about the number one pattern for 2022.. If you remember a year ago., Hopefully you remember., Hopefully you've seen the video., If not check out the channel.. But if you remember last year it was the dip and rip this year.. My favorite afternoon pattern: it is the number one pattern.

I think that you're going to need to be focusing on all the way through 22.. All right, welcome back, everyone., Be sure to like subscribe share with your friends. And, most importantly, if you're on YouTube but ring that bell that way, you get notified as soon as we drop a video as soon as we go live. Doing a tons of what the Channel ring that bell to be notified.

All right. That being said, I am lead trainer with StocksToTrade Tim Bohen. Today, we're gon na be talking about that top pattern for 2022. And I mean listen.

This has probably been the number one pattern in the post 2015 world. You know - maybe you know from the podcast. I talk about that evolution and really how the market shifted. 2007.

When I started to 2015 was kind of that. I call it that I call it that golden age of short selling and then late 2015 early 2016 was when the short squeeze phenomena I mean, obviously the short squeeze always existed, but the epic I know epic gets overused, especially by old. You know dad joke guys like me, but the epic low float short squeezes. I mean just I mean back in the olden days.

Something might double in a day and now we get three four 500 % runners.. So that shift happened in 2016. And that's really when this pattern came into vogue as really the number one. And what I love about this pattern is it's great for new and part-time traders..

Now, if you're on pre-market prep, you know a lot of the times. I really really really caution new traders or even if you're, just new to these crazy, volatile stocks.. I like to keep you away from the open. And I know that's boring..

I know it's really safe. A lot of people, don't like it because of that, but I think so many people get faked out at the market. Open. Wacky moves gaps up, gaps, downs., You panic out you make mistakes.

And what's great about the WWAP Hold pattern. Is we're looking for that afternoon confirmation., So we're looking at PPSI from the other day on screen just a beautiful setup and number one? Let's talk about why PPSI was in play. Number one they dropped an 8:00 AM press release that day.. You know we love that..

We always love that AMPR and you'll. Hear me say we love it. When penny stocks know how to play the game., You know they dropped. That 8:00 AM PR to get everybody all FOMOed up and excited., And at the time you know, Tesla was exploding back last Monday., You know, Tesla was hitting all time.

Highs. PPSI is also in the charging space.. So I considered an electric vehicle play., So they timed the PR nice. You know they dropped it during the hot sector..

This stock has a history of running.. It's also a low float stock.. You know at the time that I'm recording it', a 4 million float. They'll - probably increase the float, but as of this point, 4 million float.

Had great volume in pre-market.. So here's all those criteria, I'm listing and you can step back through re-watch the video, but I'm more about the pattern than anything., But so it checks all those boxes for that number one watch. And then you can see remember this kind of lighter gray area. That's pre-market.

And then, when we transition right here to the black or dark gray area, that's the market open. And you can see the stock pulled back pretty hard.. I mean. I know it's hard when you've got a huge runner like this, but these are five minute.

Candles., You can see put in two three five minute candles right into the open., So it pulled it right at the open. And you know if you jumped in in pre, you probably got stopped out justifiably so. I mean it opened very weak. Then it did that dip and rip..

So then it spikes it broke the high of the day of 650. And when it's high, it's 760, but then slam back hard. I mean it went all the way back to 550.. So that's where a lot of newer traders that don't have great risk management, I think you can get faked out..

You know again justifiably so You should be stopping when this thing's getting ready to take out those lows in the low fives, but now you're burned the day: trade. You're, probably under the PDT. If you're watching this video you're frustrated, you know you lost money obviously., Where what I love about the afternoon pattern, is you avoid a lot of that chop.? You avoid a lot of the formal you come back. You know mid day late day into that 11-noon.

1:00 PM window. And if this stock with all these criteria is still strong, you know I mean, obviously it's always an if.. Nothing is you know, as always, we always say nothing's guaranteed. And let me jump to the whiteboard and show you what I mean here..

You know: listen if this thing had failed, took out those morning lows and was grinding, lower lower lower into the afternoon.. Well, that's those situations where I always say you know: that's that no go. There's just no trade there.'Cause. It was a failed.

At this point. It would be considered a failed dip and rip. It broke the morning. Lows.

It broke support and is fading into the close.. So now you stay safe. Now, on the contrary, what PPSI did in the afternoon is it held? That base then started grinding higher and then it broke that high a day of 750, and you can see it proceeded to go to 1250 on the day.. Basically, I mean for all intensive purposes it doubled in the afternoon.

I mean, I know, with 750 to 1250. Isn't doubling. I know 750 times two is 15, but you get my point. It basically doubled., Then, even when it did pull hard.

It's still based for about an hour and a half which gave you a very clear exit in the high nines.. So, even if you overstayed and you didn't sell into that parabolic candle, you still had a couple bucks a share of upside. And then you know these are sketchy stocks. Low float, stocks..

I beg you not to hold them overnight.. So, even if you sold into the close 950-10, you take your profits, you move on, you can see it did fade in after hours, but that's why we don't hold low floaters overnight., But the biggest thing I love about this is that pattern. That's confirming when it bases, and then it rips in you know, I call it the 2:00 PM window.. It ran like 1:15..

That's the reason we call it. The 2:00 PM window. We're basically waiting for that morning, chop to solidify. We're looking for that base to form., And then we look for high a day breaks.

And then normally you're gon na risk that VWAP area.. You know VWAP that day, probably would have been in the high sixes.. Then you stop out there. You know you're risking 50 in this scenario: risking 50 60 70 cents, a share.

Again for a potential five, six bucks of upside. Or even again, if you let's say you did overstay two. Three bucks of upside still good risk to reward when we're talking low float. Runners.

And again I'll repeat it one more time, ,'cause I want to drive this point. Home. Understand the value of that no go idea. Because you have to be selective.

If you're new., I mean you simply have to.. If you've got that small account, you can't be overtrading., You can't be trying all these different strategies, because what's your goal, Your goal isn't to buy a Lambo today.. I mean I know that's everybody's goal but or a yacht or a house okay.. Your goal is to get that $ 2,000 account to five to 10 to 15 to 25., Then you're over the PDT..

Then you've got experience.. Then you've got risk management.. Then you branch out.. Then you trade, more.

You're over the PDT. You don't have those restrictions., But more than anything, you've now got a year 18 months of experience. And listen. You can't turn 2000 in 25,000 with bad risk management.

,'Cause. You did something right.. If you went from two to 25, you did something right.. So now you've got that ability to stop out..

Now you've got all the tools, then you can branch out. So understand. I think it's so important being able to recognize a non-ideal set up or a no trade day. ,'Cause you've got ta conserve those days and you got to focus on the best setups., So that means said low float stocks unusual, volume..

This thing traded like a hundred million shares that day. Big gap up on news. Ideally, in a hot sector, great float, rotation spites at the open, pulls consolidates, gives you a base area to risk off of and then breaks the high of the day into the afternoon window.. Typically, you set your stop on VWAP and you repeat that pattern as much as you can., There's not necessarily every day, but right now I'm recording fall 2021., There's one three to four days: a week.

So perfect for PDT and perfect. Even if you're part-time., I mean keep in mind, even if you're over the PDT most of you are probably part-time., You got jobs, you've got other commitment., You can't trade every day., It might not be the restrictions of the three trades in a rolling five day. Period.. It might just be simply you get busy at work on Mondays and Thursdays and Fridays., And you can only trade a couple times a week..

Please please, please, please focus on this pattern for these extremely volatile stocks., All right everyone.. Hopefully you enjoyed this.. Let me know., I think this might be of all the thousands of videos, I've done., The hundreds of pre-market preps., I get told so many people reference this pattern. This set up as a breakthrough for them..

So let me know., Have you already been trading? The VWAP Hold, or is this new to you Drop me a comment. Check out the steady trade team.. It's a mentorship program where I do twice daily webinars. Every single trading day.

Great way to really dial into this., Get on the white board, break these patterns down and, most importantly, have a great day and we'll see on the next video.