In today's episode, I'm going to walk you through trading in and out of circuit breaker halt with a live real-time example. Well, it's a trade that I took this morning on Hkd and I recorded it, so I'm going to replay that for you. We'll go over that as the example. This stock over the last week has gone from twenty dollars up to over two hundred and fifty dollars a share.

This is wild. Naturally, a number of circuit breaker halts. halts occur on these types of stocks when they go up more than 10 within five minutes. And I'm going to walk you through the mechanics of how these price levels for the volatility bands are determined, how frequently they update and what needs to happen in order for a stock to actually halt.

and then once the stock does halt, how the buyer sell imbalance determines the resumption. Price resumption time is always either 5 minute, 10 minute, or 15 minute in five minute increments. And so you're going to see some really cool examples on Hkd: a trade that I took on this. We had two halts down, a flat resumption that for me was an indicator of strength.

The sellers had walked away. We didn't have big selling so that by itself is bullish. Bought the dip we got pop right back up. Almost twenty dollars a share very quickly, less than a minute.

A terrific trade. These are opportunities to capitalize on volatility. As always, trading is risky. My result's not typical, so make sure you take it slow practice as simulator if you enjoy this episode.

If you enjoy learning about circuit breaker halts, I hope you hit the thumbs up and I hope you subscribe to the channel. Alright, so now let's go ahead and jump in to circuit breaker halts. All right everyone. So I'm gonna do my recap here.

Go over the trades from this morning. it's about 10 30. So shutting it down in the green and probably the most dramatic trade today was on H K, D Uh, I didn't make the most on it, but this was a pretty crazy stock. So why don't we look at Hkd first and then we can look at Getty, Tblt, Bwv, and Pgy.

And for those, uh, tuning in and watching this as a recap on Youtube? Uh, if you are interested in using the Daytrade Dash software, you can check it out over at Daytrade.ai or Yougo.com It will redirect you to Ai and um. we have an early wait list for people right now who are interested in using this software. This is chat, scans, news, and a live audio video broadcast. Those in Dash have their own chat room.

Uh, John Mayer was the first. His image was the first post ever. uh in the chat and then the broadcast right here. The Dash Plus stream has my audio video coming through Um, right there so you'd be able to click on this.

Let's see. Let me get this up all right. And then there you go. You can see me and as close to real time as possible.

Okay, so uh, Hkd? Yeah, let's go over this one first. So this, um, I'll give props to Manoli on this one because he's and he's been getting a lot of props lately. He's got a million dollar badge, um at Warrior, so he's over a million dollars of profit. He's been, you know, over the last several years.

Uh, really impressive. And Hkd, he had it. Um, the last two days. Yesterday he had a trade on it.

I don't remember. I don't know exactly where he got in, but um, he said he had a trade that he took profit on the break of a hundred. Ended up going yesterday all the way up to just under two hundred dollars a share. Now the thing is, and this is the problem.

Volume yesterday, um, was pretty light. 2.4 million shares. Volume today is only 280 000 shares. There is just like no volume on it.

and it started initially with this day back here where it went up to 33 and then on this day here, it squeezed up to 70 dollars a share. So this is a stock that has shown an ability to move very, very quickly. And so on this day when it went up to 70, some folks mentioned it and they said hey Ross, did you check out Hkd and I was like, yeah, I looked at it but you know, the volume was light, It was halting a lot. The spreads I imagine were huge and I just couldn't really see how I could have traded that and done particularly well on it.

Also, it was in the afternoon, which isn't really the time I trade. Uh, but you ended up uh, having a day of rest and then a bit of a curl and then right here this day. really nice breakout in the afternoon. Breakthrough: 62 goes up to 80 which was awesome And then you had the trade yesterday where it goes from 80 all the way up to 198 a share.

Whatever it was. Look at this move though. squeezes from 110 up to 139 and halt's going up. It resumes.

It opens at 106. a 30 point gap down on resumption, and it immediately bounces back up to 127 and then squeezes and halts up and then goes even higher to 160. a little chop in this area. halts down, halts back up, rips back up to the high here, and then into the close up to a high of 198.50 Pre-market was pulling back a little bit when I first logged in and looked at it.

it was like 142. I was like, no, I don't know, can't do anything with that. At the open, it halts up on 30 000 shares of volume. Then it resumes.

It dips and rips through 190 through 200. Halts again at 208, Resumes at 254, Halts down, halts down to 29. Resumes Halts down, again and right here. This was my trade buying on the second halt down for the pop back up, and I recorded this trade because I thought that this would be potentially a particularly interesting trade to show you guys.

Uh, just because of the sort of crazy level of volatility on it. All right. So we're looking right now at the level two on uh, Hkd Level Two, top left, or top right? Uh, chart is right in the corner here. So as of right now, uh, it is.

Let's see it had just halted up at 2 54.. All right. So then it's halted for five minutes. So we gotta fast forward to about 59 and we'll watch the resumption here.

And what you'll see is that this is going to resume and it's going to be immediately halted down. Just boom, pinned, Halted down instantly. There's there's no trade. I mean, it's just instantly halted down.

At this point, only 183 000 shares of volume. Which is, you know, crazy that it's made this big of a move. I'm surprised it didn't get halted by the New York Stock Exchange. Nicey pending a request for the company to comment on the price action.

Um, and then typically they would say that there's no news to account for the move, but uh, they didn't haven't done that yet. So now we're going to watch resumption. So first halt down. Now we're going to watch resumption here for a second halt down.

All right. So watching resumption is going to be in just about 10 seconds. I think it resumes and immediately is showing 77.32 It's pinned. it's down, but a 22 point spread.

and now the spread on the ask is coming down and you get a one sell order there. and now you're into a halt going down. Okay, another halt going down. All right.

So now we're going to fast forward let's let it haul. So remember when halts are happening? Uh, let's see. let me turn on my camera. Let's do.

let's do a little a little mini class here for you guys. All right. Um, Whiteboard Here we go. Uh, All right.

So I'm gonna move this for just a smidge. Okay, and so you have, um, the level two of a stock. So H K Oops Sorry, uh, H K D. All right.

So you've got, uh, what's our level two on this? We've got 77 177 on the bid. Um, and then we've got 177 32 on the ask. All right. So what happens when you have a circuit breaker halt? Um, the way these these halt levels work is, you've got the price of the stock moving up.

You know, like this. Let's just say this. a line chart for the price of the stock. And then the circuit breaker halts are actually their volatility bands.

And so the way these volatility bands work, they're moving and they don't actually go like this. What they actually are doing is they go like this and then they immediately jump up like this and like this and they can even come down if the price comes down of course. And then they keep moving up like this. So these are volatility bands and they update approximately every 30 seconds to the average price of the last five minutes.

Updated approximately every 30 seconds and so what you'll sometimes see happen is the stock will climb right up to a halt level like this. and then all of a sudden boom, 30 seconds is up and the halt level jumps higher. right? You've probably seen that if you've been actively trading, you'll see the hot lever halt level jump higher and sometimes then the stock dips down for a second because it it like false halts and then it climbs up to the next hall level. Now in order for a stock to to halt, it has to stay at this level for a minimum of 15 seconds.

and it's not this level on the ask. When it's going up, the bid has to stay above this volatility band right here for 15 seconds and so inversely here we'll start the timer on. Uh, Hkd, So Hkd, we're gonna watch the resumption here. Um, so let's watch the resumption.

I'll go full screen all right so you can see and just by the way, the volatility band is called the limit Up limit down. And so the limit Up limit down band right now on this is 77.32 All right. You see this level right here: 77.32 So we'll actually flip back over here and change this to 77 32. So that's the rolling average right there.

And it's Uh, 10. Now it actually can be different. Uh, this is a 10. These bands are 10 away from the average price.

Uh, different stocks can have the bands tighter and lower price. Stocks can have the bands actually further apart, but in this case, we're at 10. Okay, so 77 32 on the bid. Now right now at this moment, there is a buyer at 77.32 and then the seller on the ask in this case is it 199.25 And so this will not halt.

This stock could stay trading at this price on the level 2 for an hour and all it's going to have is a huge spread, a huge spread, And sometimes you'll actually see a stock with such a big spread that it's a halt level down on the bid and a hot level up on the ask. So it's like a 20. Uh, spread. Basically 10 up and down from the average price.

So in this case, the halt up level is a 216 72. All right. So we're not straddling like that. Um, we're closer to the downside.

All right. So you've got one seller on the offer at 99 and then the seller comes down As you can see quickly, there to 190 37. And now actually the bid came up. Uh, no, sorry.

The bid actually went below that band. The level disappeared. But that's just a weird thing with nicey stocks that sometimes happens All right. So you've got 85 29 on the ask and now you've got 77 32 on the bid.

So now here's the problem. This is when right now we're going to start the timer. Because right now, at this moment, the um, the lowest price seller is now actually at or below the volatility band. So the Ask needs to be below this bottom band right here.

The ask price, not the bid. The Ask price needs to be at or below this bottom bid. And now we're going to start the time for 15 seconds. It needs to stay there.

So the current time is 1004 14.. So now let's watch this. So 15 16 and now notice this stacking. You're getting a stack of sellers here.

So this is this is most likely going to halt. Now some of you have seen recordings that I've done of false halts. Uh, a false halt is when. Because right now at this very moment, this only has 196 000 shares of volume.

Let's say someone punched a market order buy button for 25 000 shares. Most likely 25 000 shares would buy all of the shares for sale at 77.32 Therefore, your offer would disappear and it would pop up. And if it pops up, then the timer resets, The 15 second timer resets and in this case, um, that also could cause seeing a big green order like that could cause other traders to come in buying the dip for the move back up and then in the meantime you know our 30 seconds come up and then the halt level actually moves down even lower. Or it changes.

So then you don't even end up having a halt. So what usually happens when you get the ask really stacked up and then it thins out? It's thinning out as green orders are going through the time and sales and then it breaks and you snap back up and you can snap up really fast. So on this one here. Oops.

So well. I didn't mean to press that button, but reminders, always. trading is risky. My results are not typical, so make sure you practice this simulator before you put real money on the line.

All right. So we're stacked on the Ask. This is a halt. Now the stock has been halted.

We had our 15 seconds and we're halted. So now the circuit breaker halt is going to be for approximately five minutes. We're going to jump forward to 1009.. All right.

So 1009, We're going to jump forward here. All right. So now we're going to watch resumption. And on the resumption.

This is where I end up taking the trade. So remember that when stocks are halting, uh, what typically happens is stocks halt going up And you know if you think about the mechanics of this, these circuit breaker halts are designed to reduce volatility and and sort of especially to the downside. So if you have a stock that rapidly squeezes up here, you know on two candles or whatever, it's up ten percent in less than five minutes from the average price. And remember, that doesn't necessarily mean it's up ten percent from here because the average price is updating every 30 seconds.

So it's really got to be up 10 from like here. So it's probably already up like 20 percent from here. All right, So it halts up. Now what happens during the hall? During the hall, traders can continue to send orders to the market, but orders will not execute right.

They'll just go to the market. they're not not actually going to execute so they're going to sit there in in like a holding pattern. So now during the halt, if you have people that are sending buy orders to buy, you know 5k shares, 5k shares, you know, 50k shares. Whatever it is, those are all stacking up and what they what has to happen in order for the stock to resume is you need to have a, um, a balance.

So what will sometimes happen usually when there's a halt going up is you don't have very many sellers. Maybe you only have, you know, 5 000 shares of sell, but you have 55 000 shares of buy or 60 of buy which creates a 55 000 share imbalance to the buy side. Well, the stock just squeezed up to six dollars. So now you've got 55 000 share in balance to the buy side automatically.

and this is all through the electronic market. It will, um, the exchange will buy any of the sellers that were in this area up to 55 000 and then the stock resumes here at 650.. So it opens higher and then begins trading. And you know maybe you get a dip and a rip and a move up to 675 or whatever the case is.

and if it halts again, going up, then again the same. the same thing will happen. and what typically will happen is it'll open again higher. Now it opens at seven 725 and it keeps going higher and so typically stocks that are halting going up.

The way the charts look is you have a big candle like this and then it gaps higher. So the next candle's like this. so you have this big gap and then it gaps higher even again. And I've seen stocks that have halted like five times in a row going up.

Inversely, I've seen stocks halt. You know, well, this would be a red candle. But whatever. just for the sake of argument.

Uh, halt. You know, three, four, five times going down and they keep gaping lower. So at a certain point, however, after a number of halts down, or a number of halts up, there will not be as many traders that are going to be bidding it in that same direction. And so in the case of a halt down, an indicator is what price does it open at? Does it open at like another big gap down? Because if it does, you're going to usually continue to sell off at least a little bit more.

And in this case, here you you. If you open flat, that's bullish, Because that's telling you that there's not an imbalance to the sell side. And if you actually open higher like up here in the midpoint of that previous candle, then that tells us that there was actually an imbalance to the buy side. And that's when you get these really dramatic swings back up.

which is like a short covering type of setup. So on Hkd, this resumes flat. I had an order ready to go for 50 shares. I put the order in at 180.

Resumption is flat. That is bullish. Immediately, I'm bullish on it because it opened flat. Look at the previous resumption.

the previous resumption was a big gap down. It gaps down, sells off. So the fact that it opened flat. That was enough for me to say boom, I'm in And all I need to see was a teeny bit of green on the tape and I punched the order.

Now I only bought 50 shares because I knew that this is a stock that has huge spreads, is very volatile, has a lot of risk. So I'm in this here with 50 shares and now I'm watching and I'm looking for that curl Right now is the moment of truth. Is it going to hold and look at that? It rips back up here to the halt level up. So let's back this up.

This was actually halt level backup right here. The hot level backup was 94.70 Now we've had stocks like this that actually will halt going back up. I took the profit off the table because I was like, hey, that was a great trade. I didn't want to be caught holding this during halts because I didn't want to take the risk that this could get halted pending news.

All right. So now you've got this big stack of buyers here. At 194.70 it looks like it's going to halt back up and watch what ends up happening. It starts to thin out, see how it's thinning out a little bit.

All of a sudden, the bidders are pulling their bids and now they're disappearing And in fact, you have a little bit of selling and then you get that reversal back down. It starts to dip down and so this is an example where right there, the timer restarts. As soon as that bid drops below the band that 15 second timer restarts and so this ends up forming a false halt going up. During a false halt going up, we also have the risk of the halt level moves higher.

So right now the ban this the timer is start again. notice that the halt down is 59 30. and now look at that, see what happened right there. The halt level moved up to 204 20, but the halt level down moved up as well to 160 707 because these are constantly changing, right? So anyways, um, this was just a pretty wild example.

I made uh, like 17 18 17 a share on 50 shares made 874, catching a bounce on a resumption. After a second halt down, it was opening flat. That by itself is bullish and um, you know, I was pleasantly surprised. I was willing to risk a thousand dollars on it, and I'm happy that I made 800.

it was a decent risk reward ratio. Could have made a little bit more I suppose if I'd taken more shares, but was happy with that. Quick trade and this is a light volume stock. This is a sort of particularly risky one.

so that was my last trade of the day. Uh, and it's the one that I kind of wanted to cover in the most detail because it's so interesting that price action right around. uh, circuit breaker halt levels. So anyways, and those tuning in on Youtube who are going to watch this as a recap? If you enjoy learning about this type of stuff and you want to learn more, you're welcome to come over to Warrior.

You can watch me as I'm trading live every single day. You can go over to Day Trade Dash if you'd like and you'll be able to join the waitlist and you'll be able to subscribe over on this side where you'll have scanners, you'll have news, you'll have chat, and you can subscribe the audio video broadcast if you want. Um, so just to throw that out there, those that tune in on Youtube there's delay on Youtube. We, as, um, you know at Warrior we use these ultra low latency streaming servers.

They're really, they're pretty expensive, but they give really super fast market commentary which is, um, is helpful. Uh, V racks Some folks commenting on this whoo. Okay, so looks like, um, some volatility, halt up, a dip, a rip up to 23, and then a halt down at 20, a resumption, a dip, and then a halt back up. My goodness, this is some wild stuff.

Hkd is back at 210 after hitting a low of two of 145. Golly, it's wild. I'm not going back for seconds on that. I'm I'm happy with.

I'm happy with how I did. Okay, so now let's talk about um, the rest of the day. So this morning when I sat down, the routine is the same every day. You guys know my routine.

I sit down and I start by looking at the Gap scanner. Ross's Top Gappers. All right. So leading Gapper this morning was Getty.

Um, Getty Images. Some of you guys may be familiar with, Um, this company. They're They're all over the place in terms of they are at all these big events and they have all these photographers out there. They get these really good images and then people can license those images and use them.

You know, pictures of like celebrities and politicians and events and all this stuff. So anyways, they did a merger with a special acquisition company. Uh, the company sold 82 million shares at 10 a share to raise approximately. um, uh, 820 million shares as 828 million dollars.

Let's see, it was on the Um business Combination disclosure. So uh, raising 828 million dollars. And um, they went through the merger. So now you've got Getty publicly traded company through this merger.

and um, you know, I mean pretty impressive. Uh, this morning this thing goes from 12 pulls back. Uh, this was actually after hours yesterday. It goes all the way up here this morning pre-market to a high of 31.91 and uh, that made it our our leading Gapper in the entire market this morning with 152 percent gain.

So that's a huge Gap. I took a couple different trades on it. Uh, my best trade would have been uh, this near perfect cup and handle formation. So what we got and I'll switch to the five minute charts.

a little easier to see. Uh, it sort of sold off. it pops back up. You get a break of V wap here, pre-market comes up to a high of 28.50 and then look at this cup and handle formation.

So the way we visualize this is this is the cup and it came up to a pretty dramatic uh, double top right around like 28, 30, 28, 40. it pulls back off that level naturally because it was extended coming into that level and then it rips through on this candle right here and you got a little algo spike. It goes up to 35 a share. A seven point breakout.

I again it's kind of like Hkd. I didn't trade it with big size, the volume was relatively light and the spreads were also pretty big. But you know, I got a couple trades on it. So anyways, that was the best trade right there.

um Pgy. This one I made money on and then I gave back what I made. My first trade on Pgy was also. You could almost say a bit of a double top, but I got a trade on it as it was squeezing up on this candle here.

and then I added back right here for this trade up here and ended up losing. I added too high for the break through 21 and as it came back down I gave back the profit I had made on it. So I was up 1500 on it and I'm down seven dollars now, which you know I'm okay with. That Kind of puts me back to flat on the stock.

I was adding here higher because I was trying to anticipate that curl through this level of 2143 yesterday and then through 22 and I thought if we got above 22, we had a retest potential for move back up to 25. so nice idea but didn't end up working. All right, so that's fine. Pgy Tblt ended up being the biggest winner today.

A little bit lower price compared to the others. uh, traded it yesterday as well. We had some nice action yesterday morning, right there. Uh, ended up holding up relatively well all day.

We got an algo spike on it here, it drops back down and then this does. another cup and handle formation comes back up right here. breaks from this level and we get this squeeze higher and we actually had yet another one. Today was the day of the cup and handle pattern right here at Uh 7 30.

double top up to 7 30. Pull back, rips through that level and that was my last trade on it right there. up to 777.. bought the Uh, the cup and handle formation on this and then Bwv hit the high day momo scanners a little bit earlier.

Jumped into that as it was squeezing up, stopped out pretty quick, captured some profit, but not a lot. It didn't end up being very strong. So those are the five stocks I traded today. Green on four out of five, Pgy, more or less break even and overall a pretty solid day.

We're um, having a bit of a recovery in the market, which is good overall market climbing back up towards the 200 moving average, so you know a little bit of the wind starting to get at our back. Yes, we're still below the 200, but we are coming back up. which is good to see. 417 is a daily level that we'll be watching.

Obviously that's technical, but that's the 200 and also corresponds pretty well to this high of this candle. So we have a bit of a magnet to that level I think. and then we probably pull back off of it. Maybe we form, um, some type of consolidation between these levels of around 4 405, 410 and 415 417.

And if we can hold this level and certainly get back over the 200, we're going to be in really good shape going into um, Q4. So anyways, we'll see what ends up happening. But um, overall, this ended up being a pretty solid day. Hit the daily goal 5 000 a day, locking it up, shutting it down here going into 11 a.m I'll be back at it first thing on Monday morning.

so thank you guys for tuning in and I'll be back at it on Monday morning. I hope you really enjoyed that video and make sure you hit the thumbs up and subscribe to the channel if you haven't already. Our goal is to hit 1 million subscribers this year, but we won't get there without your help. so please please please hit that subscribe.

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