Trading the Trend | Prior High, Pull Back, Bounce...Rinse & Repeat?

happy Thursday to you the question we

always ask every Thursday is what trends

are you riding as we talk about trading

the trends we'll talk about short-term

Trends intermediate long-term trends all

the above let's go ahead and hop right

in we also have Ben Watson with us we

welcome him and I should say the Ben

Watson okay sorry about that Ben accept

my apology and uh and uh just real quick

as we get started we have many of you

here like Bill borof welcome Austin Mark

Scott Grace Frank Kathy and many others

we welcome all of you first time here if

that's you we welcome you welcome to the

community of investors and Traders now

just remember when we talk about today

our Focus will be stocks and options

when we talk about options remember

options carry a high level risk not

suitable for all investors also

understand the information here is for

General informational purposes only with

this webcast discusses technical

analysis but there's other potential

Superior approaches uh it depends who

you ask right right we use technical

analysis and fundamental analysis okay

which one spear we don't know okay but

uh just understand that there's maybe

some different types of analysis that

might help uh in getting an idea of it

might be a suitable investment for you

also remember when we talk about the P

Money software application that is for

educational purposes only investing

involves risk so when we talk about

options we will also reference uh what

does it mean to be short what is is the

assignment risk is there any and we'll

also talk about option Greeks so first

off what I want to do is uh I want to

hop in and talk about kind of where the

markets are we have a margin account

that's a little bare right now I don't

feel good about that and we'll talk

about where the IRA is we have some past

trades that we need to discuss here

today now when I look at uh really what

I have slated to talk about I don't

really have anything to talk about okay

everything we talk about I want to kind

of just show this is a blank page I

don't have anything to talk about I want

to kind of show this application as if

this wasn't a class in other words we

just pulled up our computer right now

and we said hey uh I want to go ahead

and take a look at the market I want to

do it right on the spot sometimes when I

think when I take a class I'm wondering

how long is that Professor or that

teacher prepared this material so we're

not going to use any of this everything

we see is going to be right on uh right

on the uh screen and we don't need any

prep material at all and that way we can

kind of get really practice okay this is

like putting away your notes before the

test let's take let's just take the test

and let's also kind of talk about where

these Trends are and how we might want

to try to potentially ride those which

ones and why so first off I want to

bring up the Dow just real quick Dow's

sitting here about plus  little higher

here this morning but

nevertheless still holding that like the

crossover some might like that like to

see that  period moving average go

green hasn't yet would like to see that

many would if we look at the SPX you're

going to see that we did make an

intraday High holding still above the

midsection of yesterday's candle moving

averages your favorite color green and

green now I said yesterday that I'm not

gonna uh I'm not gonna change my green

shirt until this short-term Trend ends

trust me I thought about it I was like

and by the way someone said that hey you

better buy some deodorant just in case

and you're going to lose all your

friends I was like I think I've already

lost all my friends okay we're past that

and I appreciate you saying that because

that was pretty funny now if we take a

look at uh the S&P we're still a brand

new high and I want to also bring up the

three-year weekly okay this is not just

something on the daily chart this is on

the weekly chart okay as well and I'll

kind of take this off so we can kind of

the lines off so we can see this there

it is now if you zoom in on this what

you're also going to notice on this

chart is there's your crossover again

notice how we're being consistent on

what we're looking for right and then

look at the Shadows so far now last week

we talked about two to three bearish

trades seeing the S&P bounce back might

not necessarily be great we will talk

about those trades from last week okay

now

pretty strong though now is this a

hammer on a weekly candle or is that a

hanging

man that's true bill says you might

offend Jacks oh

absolutely okay and and and if we close

here would this be close above the high

of the low week if we can close here so

if you think this is a bullish bounce we

could call that the hammer doesn't have

to be a green candle it could be red so

we could call that a hammer if you think

it's bouncing and if we close here we

would be closing above the high the low

week so and then just kind of some

bullish technical analysis there now

what I want to do is I want to go back

just real quick to uh a couple positions

and I want to go look at the IRA first

for a moment okay now a couple things

that kind of stood out I want to kind of

show you what's in these uh

portfolios uh and if we take a look at

this we can see the balance up top we

have more positions in the ira focus is

going to be try to get some Capital to

work in the uh margin account as well so

we have we have Colgate okay which is a

long

synthetic okay and if you look at that

long synthetic just kind of ho humming

along there's your bullish side of the

trade don't have anything to say on that

PG a stock position okay and if you look

at PG that is a stock that for example

is getting a little decent bounce that's

the weekly chart okay you go go back to

the one-year daily and there's your

bounce now we're going to try to add to

this position here today okay now

remember I want you to remember what I'm

saying right here when you have a prior

High you have a pullback near the

support

area many investors are going to be

looking for the moving averages across

Etc and if we zoom in today what type of

candle do we have right here what do we

call that

well so that's your bullish engulfing

okay look at where those intraday lows

are the intraday lows especially in the

yesterday was right near the moving

average today we went below it fought

back and actually pushed back Above So

this goes back to if investors are

really buying stocks

okay after it goes down and they they

they in other words they buy below a

moving average that's pretty bullish

that's like buying below potential

support why would someone be buying

below potential support they think it

could go higher little piercing line

candle little inverted Hammer a little

not a hammer but close bullish engulfing

so we're going to add to this position

first off we're going to get the capital

work uh in that margin account so I'm

going to kind of add both here we're

going to right click on the as price buy

custom we're just going to say wh stop

okay so the first thing what I want to

do in this case is I want to kind of

look in this the margin account how much

Capital do we have so , no one

position should be probably more than %

of the capital probably on that

portfolio we're talking about $, a

position first thing that we're going to

do is we're going to come up to the pool

ball perc dollar amount okay so on the

margin account we're going to put about

$, what is that , give me a

calculator there we go we're going to

take

, and if we said look we're not

going to put any more than let's say %

of the capital it'd be

now why do people buy stocks well

they might really want to buy stocks

because they want to get maybe an

upcoming dividend they just want a

higher Delta as well so we're going to

put , here okay which is going to be

shares of stock we're going to go

down to the data

GTC and now what you're going to see in

this case is we just need to see where

the stop is we could put a Target I'm

not going to but if we went back to the

chart when we see a prior High pullback

we're always thinking about

Fibonacci okay and when we go back to

this got that

um got a taskbar setting that is uh

hiding the

chart there okay there you go need that

little magnifying glass so if we wanted

to set a Target let me just kind of Mark

this for us prior High down to the low

body to body and you're going to see

that if we looked at that extension if

we want to set the Target that Target

could be at the  the  or the

those are your markers if you said I

don't see the  simple way to fix it

right click on the line edit properties

and all I'm going to do is I'm just

going to take the  off type in .

which is not a fib number this is like

from horizontal support to resistance

and that's going to give us the targets

we do that a lot okay doesn't mean they

all work but it's the same pattern over

and over and over again okay so if you

said James I'm dying to set a Target

let's set the target at

I'll do that for you because well as

Ben Watson would say we like you okay

and what I'm going to do is let me dup

duplicate that order what I'm going to

do in this case is we'll put the Target

right at

okay so let's put that right

there  and then if we talked about

where that support level is zoom in on

that take that down if we said look I

want to set a stop

underneath today's low well today's low

is at

so if I said I want to set that

stop % less than that

less %

so now if I go back and put that

on

okay  shares confirm

send there it is okay now the biggest

thing is that the market starts going

back up and we're sitting primarily in

cash

, of the , is is sitting in

cash what does cash make

doesn't really make anything okay that's

the problem that's why we're trying to

get it to work notice this first line is

saying you made this uh an investment

based upon a certain amount of capital

noted and then with the stop order

there's no guarantee the execution price

will be equal to or near the activation

price the activation price is the stop

that we placed we're going to send that

order and that fills so now what you're

going to see is when we go back to this

okay that order fills there now I want

to go back and see if there's any

questions okay now Scott says my

inclination would be to wait until

was

eclipsed Scott I'm gonna push back on

you buddy we're friends okay but right

now let's go edit okay let's talk about

this here's the problem it sounds

logical yeah yeah that's what I'm going

to do I'm going to wait until we go

above the old high and if we were

betting uh of what would be the the

outcome of that we would say that most

in people would say well now it's at

all-time high and I don't I'm not going

to buy at alltime high I feel like now

I'm too late I think that would probably

be % likelihood or more probably to

that if someone said that

okay it sounds logical but in reality

might not happen let me ask you another

question okay why are we getting such a

large candle up near the prior high if

someone doesn't think or some

institutions don't think this could go

higher right okay so that kind of goes

back to you know we wanted a pullback we

got a pull back okay so we get a

pullback we finally get one one so

there's step one

they're step two and on the same day

they're step three you wanted a pullback

you got it now someone's saying I'm

going to wait for the brand new high

wait I thought you want a pullback I

thought you wanted to know when to

consider the entry you get that and now

all of a sudden I'm GNA wait for the

brand new high okay now I'm not just

channeling my my frustration towards

Scott okay but I we've all been that

person okay so the biggest actually

thing is be careful of always say I'm

going to wait for it to make a brand new

high because if you called those people

back that said that a friend of yours

not you you're going to find out a large

majority of the time they never got in

okay they forgot all they were busy

whatever okay so we're not waiting so

why not wait for the pullback okay so if

you get like a stock that's making a

higher low higher low higher low some

investors will say I gotta wait for it

to Brand make a brand new high well why

not try to buy some on that dip as it's

making a higher low and then maybe try

to add so some investors say look I'm

going to play Both Sides okay I'm going

to try to buy on the dip the pullback

and then I'll add if it breaks out but

the problem is if you try to add a full

position when it breaks out the biggest

thing is you'll say you'll feel like

you're late you're buying elevated off

support and then you just feel like I

should have got in back here I should

have got back in here I should have got

in here and now I waited all the way up

here and I'm just I need to run another

search stop running searches and maybe

trade what's on the

screen okay I'm coming down from the

soap box now but that's something that I

think what happens is people say this

but then do something else if you wanted

to pull back you got it trade what is

your entry signals if that's your signal

then trade the signal but don't just

kind of say things like oh I'm gonna

wait wait till this wait to that wait to

that Scott Thompson said at the best

what would you need to see to to

consider an entry per your rule set

okay just eclipse in the old high is not

the only entry we know that that's a

breakout but we know that there's a

bounce typically before the breakout I'm

not just talking to Scott here okay I'm

just that the me there's a mentality of

waiting to the new high okay before that

new high there can be other

opportunities as well okay

all right

now are we still friends okay now some

of you are wondering geez no wonder he

doesn't have any friends okay H now

here's the deal what I want to do is I

want to also go back so we talked about

adding to the position there I want to

go back to for example one other one

just real quick I want to mention meta

today kind of Hit the

middle of the channel okay now if you

take a look at the this if we zoom in we

did a little trade on that we don't have

a Target yet but the one thing I want to

start to watch okay we have a Target on

this at

four well excuse me

okay what I want to do so we got a

Target at  today's price at the

highest was

now what you're going to notice is

the reward so if we we were at

and then we have a target of like

say

we're only trying to make $ more

does that make sense type in the chat if

that makes sense okay today's high was

we were trying to go to  we were

trying to make  more

dollars now Captain Obvious here it

comes it's going to hit you right

between the eyes we were at  this

morning and then what you're going to

notice is the stop was way down here at

so we're trying to make  more

dollars but the stop loss is  points

down can you hear me down there so

that's what we call like that one to

four $ up $ down this triggers what

type of stop methodology that we're

going to use well if we're if we're

trying to make okay if we're trying to

make in this case  more dollars

we're not going to risk $ to the

downside for that we're going to start

to squeeze the stops now we always talk

about two two different methodologies we

always talk about a one: one reward R

ratio okay

or the one to

. okay we trigger that when the reward

to risk

ratio is  to four or

worse so we saw that we we were trying

to make $ more but the stop was

points down that's pretty much one to

four what do you mean or Worse one to

five one to six Etc as you go up closer

and closer to the Target uh you're going

to see in this case that the that

potential loss or how much you're giving

back down to the stop becomes worse and

worse and worse so we're going to use

the example one to one and a half simple

we had

$ to the Target okay fine now we're

going to take that $ times

. and it is going to give us survey

says well it's going to give

us  and a half so who cares what are

we going to do with the  and a half we

are going to take the highest price we

were at today  less  a half and

what that's going to do is it's going to

give us where we're going to raise up

the stop loss okay now if you know

anything about the stock market someone

will say a comment that we hear very

frequently I was doing so good until

what I was doing so

good until I gave it all back okay my

gosh you could have a shirt of that so

why do they give it all back they have

really poor reward Rous ratios

one way that I learned over time to kind

of say hey how could you try to keep

that reward risk ratio on your side well

don't risk more than you're trying to

make okay and what you're going to

notice is this one to one uh would

really be the tightest and the one to

one and a half is really a little looser

the key to remember is you're taking the

whatever if you're using one and a half

that  half is coming off the highest

price irregardless if we were there so

hey I wasn't there this morning doesn't

matter we're going to move up to stop

anyway we're going to take  the

highest price less  and a half where'd

you get the  and a half well it's the

reward times . we're going to move

with the target the stop excuse me to

and it's

right d com it about right there okay

now I'm going to kind of go in and just

kind of move that a smidge

stop

GTC okay read that line again send the

order now there you go so now we've kind

of squeezed it a little bit okay are

there any questions oh yeah Nora knew it

she's like oh man I met someone says

until I gave it all back those are the

worst words to come out of your lips now

I want to go to another stock just

briefly Amazon okay now I want to kind

of take this Blow by blow day by day

here okay now I want to kind of just

look at this chart the chart only before

I go there I want to see if do we have

any trades in here on

Amazon now if we pull this up go back to

the IRA what is the position do we have

any on this it's a short vertical okay

and what you're going to notice is we

have a long call

vertical now let's say I didn't know

anything about managing positions on

Amazon is there anything to do James L

do you see anything BJ Nora okay medy do

you see anything that we should consider

talk to me now remember when you look at

this line we're looking at the Amazon

line what is the trend of Amazon and if

we see that number three that's almost

like maybe a little Christmas time that

maybe that stock potentially could be

making higher highs and higher lows but

I'm so confused why does for example

this right here show one because that is

charting the put

prices okay simple now so by the way

that wouldn't be bad if it's a bullish

position you want the puts to go down

now if we take a look at this position

we're sitting here about

% we're going to try to grab beep beep

back the truck up and we're going to try

to harvest or haul away those

gains off now we haven't got filled we

haven't made anything yet I mean we have

some potential Gaines but nothing has

been realized let's try to realize it

okay now here's the deal uh we're going

to right click on those lines create

closing order and then we're going to

buy that back now when you do a vertical

a short put vertical you get in for a

credit and then what you're doing is

you're buying it back hopefully closer

to zero you get a credit okay let's say

two bucks and then you buy it back at

cents you're trying to make that

difference less the commission okay now

some people uh if you take a look at

this they might say well I could wait

another  days is

and try to make  cents or you might

just consider rolling the position now

I'm not going to roll a vertical we're

going to try to be a little bit more

aggressive with this trade when we say

aggressive we're going to talk about

picking a strategy that has a higher

directional sensitivity okay so if we

take a look at we're buying that

vertical back we're giving where's the

bucks coming back well it's  cents

or  bucks times three contracts okay

there's where the  is coming there's

the

okay there it is send the

order fire in the hole now what we're

going to see is if that position fills

we're going to give it two three minutes

doesn't fill we're going to go ahead and

see why is it not filling now let's go

back to this now let's kind of take a

look Blow by blow so if we take a look

at this we zoom in Red Line Red Line Red

Line Red Line red line all the way down

down down come on down

so how do you know when it's maybe going

to

turn when we start to see like bullish

engulfing

candles piercing lines inverted hammers

when you start to see those moving

averages starting to pinch you start to

think hey we could be starting to get a

little turn here now notice I ain't

showing you the macd okay I don't want

you to look at that right now I want you

to look at candles price and mov

averages only when those moving average

starting to squeeze like B scripts

you're thinking hey we could be starting

to get a little bounce here now what do

you notice there's your bullish

engulfing there's like an inverted

hammer and those moving averages

pitching okay now is that an entry yet

well we don't see any color on the

moving averages yet going from red to

Green don't have anything nothing next

one nothing damn oh little hammer time

so far

okay no moving average changes now

notice we're not using  different ways

to get in okay what do you see now talk

to me Nora what do you see BJ what do

you see John okay s says James sorry

James I don't know what you're sorry for

okay John says is there a way to keep up

with the move revise stop to be placed

uh into the original

group yeah so the key is just move it up

to uh let me actually take a look at

that in just a sec but I think you could

just move it uh reallocate it to the to

the stock group okay we see that shorter

term line go from red to Green okay so

and then little start here okay of a

move there's your cross and notice the

first one didn't pan out we thought hey

it was really close do not be

discouraged by that sometimes that first

entry that looks like it might happen

sometimes it could drop down a little

bit further the SEC now it didn't give a

signal okay second time it did and

that's where we are number one number

two and three on the same day that two

and three can happen on the same day if

the move is pretty well bullish so in

other words what do I mean by that let's

say you go up five bucks in a day like

on a this stock price a large up move

like that can cause both the moving

average to cross and that lagging moving

average to turn at the same time but if

it's a slow turn that might not be the

same day here's where we are now it's

it's probably thinkable uh to say hey

we've gone up could we have maybe a

little pause day Etc maybe let's say we

wanted to not do a short putut vertical

but to do a long call vertical now does

anybody know who teaches that class

every Thursday at : a.m. eastern

does anybody know who would actually

teach that class on long call verticals

and diagonals now what we're going to do

is we're going to pick something like a

long call vertical and that position is

not filled yet and as I'm kind of

getting an answer I'm GNA come in here

and see if we can't just flip that the

market we're above the mid price that's

what's interesting at D we're going to

go to the July we're going to go out a

little bit more we're going to pick

something like the at the money call the

whole goal of buying at the money is

your trying to have some of the option

value be intrinsic value okay so some of

this we're at  and change the option

values

is all the a is intrinsic

value think of it as short-term Equity

okay that number changes based upon

where the stock is in relationship to

the Ste right okay now what we're going

to do is we're going to right click on

that

we're going to go to where it says

buy and then

vertical now if we said vertical okay

yeah the chart that that you're

absolutely right BJ's yeah good job now

what I'm going to do is I'm going to

right click on that buy vertical now in

this case what we're going to do is

we're going to buy the  and then sell

the

so by selling the

it's pushing down the break

even so if we buy the  we have the

right to buy the shares at

but the right's not free what's the

debit  so if you add those two

together you get La grand total

okay fine but where do you make the most

stock needs to close above both strikes

of course would like it to close above

if it does

Max profit  $ spread less the debit

and the max loss well the debit now if

you ask most people okay hey how many of

you actually can go out and buy $

$ $ $

stocks you know some people might say I

don't have the money to buy a lot of

shares of those verticals diagonals

things like that can be a way to try to

trade some of these higher priced dollar

stocks now what I'm going to do is I'm

going to go back and again I'm going to

try to work both of these accounts when

we look at what's the maximum loss we

said this

morning in the margin account we could

ma really risk about  ish bucks or

so therefore we're going to do two

contracts in the margin and in the ira

we said look we're going to try to keep

all the losses no more than a half

percent to

of

% okay now so if I said look this

account is at

and we're said what's a half of

% it's

bucks so if I went four contracts

could we do that yeah let's double check

I just don't want

to think yeah that it's not yeah okay

so we could do that but no more

than four now some people say well I I I

look at different stocks per different

accounts if it's good for the

one the margin account doesn't have

anywhere near the money the the other

one does but we're looking for Trends

we're going to trade them both okay send

the order now notice that we're going to

look and see it's now when it we do that

the account goes to Total all accounts

so if I want to go back to the margin

Mar account say did it fill in the

margin not yet and we haven't seen any

pop up Margin to the IRA did it fill

there and what you're going to noce down

below it has not filled yet okay so

that's one we're going to also keep our

eyes on are there any questions now Thea

says how to create a scan to get such

across as a  okay oh man there

there's no way to do that okay that's

funny that's not true at

all okay so here's the

deal and forgive my forgive my platform

so when I'm doing a class it kind of

takes the bandwidth off my computer and

there's a column heading so so Thea you

says run a

scan we're gonna change that and say

look how about just what is the script

to find like a whole moving average if I

said I want to try to find something

where there is a recent moving average

cross

okay I'm just going to go ahead and

right click on that edit formula and

what I'm going to do is I'm going to

just share this with you okay now so

what happens is we get a link that link

for example I come to this okay now

here's the deal if we had a margin

account the IRA account if we're trading

options in both that's assuming that we

have

options ability and both to trade that

strategy so you need to see what what

level am I in terms of uh trading in my

margin account what level am I in terms

of trading in that IRA account you have

to verify that okay we're going to

assume that we could do a vertical a

Define risk trade in both okay now when

I send out this script in the chat okay

uh here's the deal now the actually says

and set an alert I'm going to P back on

that the here's the thing people want to

run a scan no I want to run a scan and

then I want to get an

alert here's the problem we're just

making it too complex if you said to me

how many scans do I run daily

zero how many scans do I run a week

zero so the biggest thing is the reason

why it's zero how many you run for the

month

zero so if you have this up whether it's

on your computer your tablet your phone

or whatever you could simply just look

at this in other words we're just making

too many steps why not just pull up the

list of stocks you like to normally look

look at Dow nasc  S&P  Etc

whatever it is and just look down the

column okay just look at the setup that

you have

okay so someone doesn't need an alert

they could just say I'm doing my routine

now and I'm looking down the column to

see do any of those stocks actually have

the setup that I'm looking for across

today cross in the last day cross in the

last two days the problem with an alert

is that makes me think that you're not

looking at the

platform whether it's on a mobile device

whether it's on an iPad or a tablet or

the

platform okay so you don't an alert if

you have that column heading and you're

doing your routine so this is where

sometimes I think we want to kind of

have like a set routine and then we add

layers on top of it are you making it

more hard than it needs to be okay now

remember I'm your coach first I'm your

friend second okay now we're going to go

up to the very top how do you put this

bad boy on the very top right we're

going to click on the gear open shared

item okay that's all hardest thing for

people remember top of the right open

shared item and now what you're going to

see is we're just going to copy and

paste that in now if you're doing a

routine now no one can tell me I'm so

busy okay I teach the mobile class you

can see this exact same thing on your

mobile phone don't tell me you're not

looking at your phone I know you're

looking at your phone okay you could

pull up the Thinker Swim app you could

pull up a watch list and you could

actually have a column heading that's

called home moving average X and it

would tell you that okay nobody's that

busy okay what we're now going to go

ahead and do is just add this whole ma X

I'll call it class okay how do you find

that now now remember go to the top

right go to excuse me we're going to go

to the column headings right click

customize now if we customize right

click on any of these headings click

customize we'll just type in whole m a

class now if you have never really used

The Thinker swim mobile app okay I'm

telling you on your mobile device you

can get these script studies on your

mobile device as well the color will be

different but it's still going to give

you the numbers to see if it's meeting

the

criteria or not need to remember scripts

are not guaranteed for accuracy so you

want to verify those but you can get

those on your mobile phone okay you can

put the phone in the pocket you don't

even need to bring a bag it's in your

hands if you're not coming to that

mobile class uh tomorrow you need to

that way you can actually see how this

works on the Fly okay now the comment

from Zer can you please describe the max

column well the max right click we're

going to go to the edit formula if you

don't know what those are we're going to

right click on that edit formula that is

just using uh different moving averages

okay so one of those that I sent out

earlier this week is using a day

exponential moving average with a -day

simple

the whole moving average is using the

configuration so sometimes people like

to look for and you'll see that there's

a description of what it's actually

looking for it says day whole moving

average this Max was if people don't

like to use a weighted moving average

but you're using like something like an

exponential and simple and by the way

that's not bad either the exponential is

close to the waiting of all

but the whole is the more sensitive of

the two now sirer says how to the how

the column on the mobile okay so for

example if you bring up your watch list

right on your mobile device and if what

you want to do is when you bring up your

watch list on your mobile device click

on the settings click on the gear and

you want to go down to where it says

custom

quotes So step one go to the mobile go

pull think or Swim app step two go to

your watch list step three click on the

settings at the top go down to custom

quotes those scripts that you have on

your desktop will also be on your phone

okay there you there you go all right

next question uh now do the original TD

Mar trade scripts uh transfer to swab

need to be updated yeah they do as of

tomorrow I'm going to actually bring

over all the scripts we have from the

old website to the new website you can

actually see those so let me kind of

just show you where I'm going to put

those and I'm going to put that so

historically I had a script list that we

had that was on X and all the scripts

that we used whether we're tracking

price performance volatility moving

averages relative strength bullish

bounces breakouts anything you could

probably dream of

okay

correlation yield whatever Futures okay

it was all right here I just pretty much

putting on the final touches I'm taking

all these old scripts moving them over

to the new platform and so all those

script codes will be updated okay so we

don't have to talk about the old website

anymore we could just move on and get on

okay H next

question uh now

the comment was is there a way to get

level two to show more than  columns

man I am not the one to ask about level

two okay we don't use level two so I

would probably call into let's say uh

the by the way you can go to the very

top right where it says support click on

support and then you could just say

create a support re request a lot of

people that's how they get in touch with

the trade desk and you could just ask a

question click on support go to create

support request and just type in that

question whoever's at the trade desk

will actually pull up here you can type

in your question a lot of times you can

get those questions answered right there

okay without even any calling anyone so

if you're not a people person that is

your

dream all right here we go now let's

kind of go

to uh if we look at another St that I

want to go to for just a moment uh one

of the other stocks I want to kind of

take a look at is uh I want to bring up

the

stock and the one I want to actually

kind of pull up just real quick

is couple times couple

recently some people have been watching

a stock like coca colola that is one

that actually did actually go to a brand

new high keep an eye on Dr

Pepper he

DP that is also one that for example

broke out maybe is in that little

flag and is maybe trying to get a little

push too I want to end on going back to

Google for just a moment and I want to

look at this trade and we're going to

kind of use this as a long synthetic

example now on Tuesday we talked

about long synthetics which are just a

long call plus a short put so if we had

to grade this entry and say of what step

are we on one two or three we're on step

one shorter term moving average green we

don't have a cross yet if we had the

cross that would be two we're not there

yet if we actually you said do we have

three three would be the cross in or the

moving average turning green it's not so

we're going to show an aggressive entry

now if this goes up we're probably going

to look back and say my gosh the

investor was so smart we don't know that

okay some investors might say James I at

least want to get to step two uh before

considering entry now what we're going

to show on this is we're gonna buy a

long call on Google if we bought a long

call on Google many investors might take

one or two strikes in the money  or

for our example what we're going to

do is we're going to take the same

strike on the call side okay and on the

put side the put strike is a little

higher on Delta but not massive okay now

what we're going to do is we're going to

rightclick on the ask price buy then

we're going to go over right to where it

says collar synthetic now for time sake

I'm not going to buy the put we talked

about that on um Tuesday we're just

going to look at this trade by itself a

long long Sy synthetic two bullish

options there's the debit you have the

right to buy the shares at  and that

right net net is

it's

we're going to come down and say

single order first triggers seq we're

going to right click on this line and

now we're just going to create opposite

order that wasn't too hard okay now on

that opposite order we're going to

change that to a conditional order limit

to a Market Day to a GTC now if we click

on that right there now this is where we

can go over to the right and click on

that gear and click on it okay now I'm

GNA speak to where that stop is and the

target is if we were trying to give this

some room okay where was the last little

plateau of support we we might as

investors kind of take that   less

% and we might be thinking about a stop

maybe somewhere right around

okay

yes okay now what I'm going to do

is back off if we kind of looked at this

and said look we got a prior High we got

a pullback we also have something on

this chart where we really kind of have

like a diagonal line of

resistance sometimes the diag

line might touch many or multiple prior

highs if we extended that into the

future we're kind of looking at maybe if

it went straight up we're not saying it

is we don't know but if it did that

upper Target might be in the

vicinity of

now I don't have time to kind of put

those on there but I'm just going to

speak to the Target

and then the downside if it were to

go down one

so this is more of a continuation

from the talk that we actually did on

Tuesday now if you have not subscribed

to the trader talks Channel please

please do us a favor do yourself a favor

subscribe if you have not done so

already so that way you get all of our

content for free right on your mobile

device tablet whatever you got or on

your computer also I want to give you

quick heads up that coming up next we

will have the class on selecting an

option strategy of Ken Rose I want to

thank Ben Watson for answering those

questions in chat and I want to thank

you for being such a lively bunch and I

like when we kind of argue back and

forth a little bit because now we really

start thinking about strategy and and

and nobody knows % what's going to

happen in the future but we kind of

think through of is that really what you

want to do okay it's a great discussion

here today now also remember that come

tomorrow the all these scripts will be

updated and posted on my X page this is

my X page I'll post that tomorrow those

will all be updated uh quick reminder

that with what we discussed it was done

for example illustrative purposes only

this has been the class on trading the

trend with that said stay tuned for Ken

Rose coming up next take care bye-bye