 Here's an anchored volume-weighted average price that's anchored simply to this significant low over here. I would not anchor a volume-weighted average price on that day because I'll be looking at going, this stock's in a downtrend. This day looks just like this day or this day. I don't know that's a low, but when it starts to rally even way over here, then I'll say, you know what? That looks like a significant low. I'm going to put my anchor to that low right there, and I'm going to keep an eye on it and see how that stock progresses. You can see there's two touches where almost precisely it hits, and I can show you this stuff on it. Before that time, I'll show you some stocks of the DAX, the NASDAQ, where they've just done this. I mean, they're doing it, and you see this stuff happen all the day. This green dot, where do you see the, people always ask me, where do I set the anchor? Should I set it to the high, to the low, to the close? The only answer is you set it to, how many people use TradingView? That's a lot. TradingView has, even if you have the free TradingView, there's a great anchored volume-weighted average price, the one they built. When you go on the left-hand side under Tools, I think it's the second little icon down, open that drop-down, and at the bottom is the anchored VWAP, and it's a point-and-click anchor. They'll give you the opportunity to set standard deviation bands around it, if you want. I don't use those. They'll also say, do you want to use high-low, close divided by three, high-low divided by two, or just the high? Some people say, I want to just know from the highs. What you're saying is the only thing that mattered on this day to you was the volume that traded at the exact high of that day. That doesn't represent the consensus of what happened. The only one that you should ... I've told TradingView this, why do you even offer these other options? They shouldn't be available. It's open high-low divided by four. That's the only one you should use, because you want all the volume from the open. You want all the volume that happened in the middle of the day, and you want all the volume at the close. That gives you the true average price. That's good to see that so many people use that software, if you find those settings and make it OHLC divided by four. Where you see a dot on that first candle, it just looks like a dot. That's the actual VWAP for that day, or if this was a one-minute chart, it would say from 930.00 to 931.00. The average price of traded in that minute is that dot. That's where your anchor begins. This is just taking this and expanding this area right here, so we can take a closer look at it. Again, I wouldn't have set the anchor probably until about that third white candle, and he might say, well, you're late. I would look at it and say, that's good, something's going on here, but I'm not going to chase it. It just went from 30 to 33 or whatever it might be. Later on, as the stock progresses, I'm going to remind myself of that and see when it gets touched, if it's defended, and is there an opportunity in there. The reason that it's often an opportunity is because a guy like this guy. This is Ken Griffin. Ken Griffin last year, through his hedge fund and through Citadel Trading, which is the leading market maker in the world, in the US, they do 35% of all listed trades. All the volume in the US markets, listed stocks, goes through this gentleman's firm. When he talks, you have to listen, especially when he's under oath in front of Congress. As he was two years ago, he was brought into Congress by Maxine Waters, and they were grilling them about the GameStop fiasco. How could this happen? How could all these people lose this money or are markets broken? What's going on? Ken Griffin said to them, and this is an exact quote, today virtually all trades executed by institutional investors are in the form of program trades such as VWAP. Here's the guy who's made more money out of the market ever than anyone in the history of the world made in one year is telling you this is what we're doing, guys. It's a good idea to pay attention. He said that the VWAP trades are executed over the course of a day, a week, or a month. These institutions are using VWAP borders every day. I'll give you the real quick version of why. I gave a real detailed version in the book. Basically, an institution might need to buy, let's say a company just reported earnings, and they say, I'm going to buy this stock over the next three months until the next earnings report. We have a $2 billion fund, so in order to take a meaningful position, we've got to get at least $100 million of this stock in the next three months. We can't just obviously go in the next day with a $100 million order because it's not going to go from $30 to $87 that day, and then it's just going to fall apart. They want to participate. The volume-weighted average price when it was invented in 1988, rather, was meant to say, here's how well you're executing your order versus the volume that's done throughout the day. It's known as the price a naive trader could expect to get. As long as you're not doing more than 5% to 10% of the daily volume, you have a pretty good chance of getting that order executed. Let's say we have $100 million worth, or let's just call it 100 million shares just to keep the math easy, and we have 100 days to do it. It's obviously less than that for the next quarter at 63, but let's say we have 100 days to do it, and we're going to buy $1 million worth each day. Well, what we would typically do is we would actually say we want to buy $5 million this week. Well, typically, 20% of the weekly or 40% of the weekly volume occurs on Monday, so we're going to buy 2 million shares on Monday because that's 40% of what we have to do for the week. Then we'll look at that Monday trade, and they'll say the first 10 minutes of the day typically does 10% of the volume. So they'll design their algorithms to buy 200,000 shares in that first time 10-minute block, and they'll spread it throughout the day. So when it's half of a percent of the volume is done at 12.32 p.m., they're going to do a half of 1% of their order. They're going to buy 500,000 dollars worth. So they do this so that they don't tip their hand to the market. The market doesn't know that there's this big buyer. They're just trying to sneak in there and participate with all the rest of the volume. They don't want to tip their hand and they don't want to give away to the market that there's this big buyer here. So he also said, which is not here, but these orders are all, they're not big blocks. Of course, you have your dark pool and that sort of thing, but they're going to be two, three, 500 shares. They're just sitting there on the bid, taking a couple pennies here, taking a couple hundred shares at a time until they fill that 12.32 a.m., where they have to buy 23,600 shares because it typically does 236,000 shares. And that's the way they participate. They're not trying to be competitive necessarily. Sometimes they will have a better trader who says, give me the order. I'm going to beat the VWAP. And that's where the human element comes in. The human trader will say, I can do this order today. I can beat the VWAP by 10 cents. If I beat the VWAP by 10 cents, we give the client half of those savings. And five cents of that 100,000 shares goes into our bonus pool. And that's the way then you have the firm who's doing the buy order to help be on the same team as the customer they're working for. So the main way that we're going to use anchored volume weighted average price, I'm not going to go into all the details, but it's support and resistance. That is not all the details in the book. And I think I have to speed this up a little bit. But we want to look at it, and here's a chart with, again, one day. And this stock gaps up, you can see it on the left. And one's higher, and it just looks like it's an uptrend throughout the day. But there's actually a couple of pretty good pullbacks. So this is one of a strategy that I wrote about in 2008 and got more in detail in the book as well, which is chase the gap or wait for VWAP. So when a stock gaps up, I never get involved in the first five minutes or so. I'm sitting and watching. And then to see if it starts pulling back. I love it when they start pulling back like this, because you can see for the first 15 minutes or so, maybe 30 minutes of the day, the sellers had control of the stock. And it was just natural profit-taking. And there were some shorts in there saying, hey, it's up too much. Let's see if it closes the gap and that sort of thing. But that moment at number three, where it gets back above the volume-weighted average price for the day, 32 minutes into the day, tells us with 100% certainty, now the buyers are back in control. The average price that this is traded at is above the volume-weighted average price. It's the buyers who have control. So I like to buy at number three and set my stop at number two, just under number two. So if it's $68 even or $61.92 was that low, I usually put my stop two pennies below it is my initial stop. Once I know the buyers are getting control, as it breaks out for that high of the day and it runs that first dollar really quickly, I'll often sell my first third. So we're still in that early morning period where things can reverse on us. So I like to reduce my risk. This is for a day trade. And then see if I can hold it longer. I would, on this one, I would have been out just above that, you see that first lower high and then it breaks a lower low and comes down to the VWAP. I would have been out underneath that higher low. So that's what I mean by raising it up underneath the higher low. For the timeframe you're engaged. As it pulled back to the number four, I'd be looking at saying, hey, it's back to VWAP. I'm not gonna buy here, but I'm gonna start to look at this very carefully. I'm gonna look at my level two now. I'm not gonna look at the level two all day and look at there and my eyes go crazy and who can concentrate that much. But as it starts to rally away from that number four, I'm gonna buy it again and set my stop underneath number four. And same thing in the afternoon. I'm not gonna buy the pullback to it, but if it rallies back away from it, then I'm gonna get involved. Nowhere in that chart would I be interested in shorting the stock. There's two good pullbacks, but again, the sum of the rallies is greater than the sum of the declines were above the VWAP. So you're fighting the trend. There's just no point that I ever have found that it makes sense to do that. This is Roku, which is I think having trouble right now. This was about a week or so ago, but Roku from the year to date anchored VWAP, the buyers have been in control over and over again. The sellers took control, they reported earnings and now this stock I think is likely to disappoint a lot of people. When it gets back below its significant anchored VWAP, like this one, you gotta pay attention and say now the average short seller during that entire time is now making money. So what are they gonna do? They're gonna start to press. They're gonna put offers out to try to scare you into selling. They're gonna try to take back control. And what about the longs? Well, how does the average long participant feeling in here? The average long at $56.56 is down about $2 because the average price from that low is $2 holler. So it's about trying to get into the psychology of the average participant. So when we see a stock in a downtrend like this, we wanna look at those rallies up to the VWAP and you can look here and see, the little couple of times it hit it precisely and then just, so you look at it and say, wow, it hit perfect, I knew I should have shorted there. I'm always more interested in shorting as it breaks down and proves that that was, in fact, an important high. So I'm gonna short on those green circles and set my stock up above the prior red arrow because if I short there, there's no way of knowing that it's not going to be that time that it reverses and you're out a bunch of money. I always wanna be on the winning side. So again, we anchor to important lows in uptrends and we see that often it acts as support, but not always. So if you're buying that pullback there, or let's look at this one, if you bought it at $39, is it hit that? Well, then for $339, well, two days later you were down five points. That's not a winning strategy. Where does your stop go? It becomes a question. So where we set the anchor is really the most subjective part. The analysis of it is easy. Where we wanna set the anchor is big volume of that. Something that really rattles the market against perception change rapidly. We wanna anchor there because it might have been an earnings report where these gaps are occurring in the big volume. Who knows what the reason is? The reason really doesn't matter so much. It's how does the stock respond after that event? Are the buyers able to maintain control? And this is very typical that you'll see a gap up and it holds the VWAP and then see a little bit of shake out and then it begins to get going. So it's had a big one. It just needs time to catch its breath. It's like running around the track. You can't run at full speed. You gotta slow down, rest, get your energy and then run again. It's the same thing for stocks. Gaps, year-to-date is a good one. A lot of institutions use the year-to-date anchored VWAP. By the way, you can follow me on Twitter. It's at Alpha Trends. I'm going to tweet a link to a study a friend of mine did about the year-to-date anchored VWAP. I've always known it worked, but I've never done like a back test, you know, proper study of it. He did that. So I'm gonna tweet that. Probably tomorrow, the volume-weighted average price from the Federal Reserve, the ECB. Like if you look at today's action on the FTSE, from where, you know, from the moment, I don't know what time they do it here because I don't trade that market, but you know, from the very moment that the Federal Reserve at 2 p.m. Eastern time announces any change to monetary policy, the first thing I do is click my VWAP and it's there. And I started on a one-minute chart. And as I get about 20 minutes of data, I'll change it to a two-minute chart. As I get about an hour worth of data, I'll change it to a five-minute chart and watch how it develops. We just bounced, the S&P 500 just bounced yesterday from the VWAP, from the Fed last week. And it does that really often. This is not unusual for it to be useful for up to about two weeks. But for that two-week period, a lot of times, it didn't happen so much here, but a lot of times you'll see on day three it hits it bounces. Day five, it hits it and bounces. Day six, it turns sideways and then breaks below it and then it bounces back up and finds supply there on day seven and then it falls apart. That's really, you know, that type of action is very typical. Earning reports are one of the biggest catalysts for most people in the market. It's that, you know, every three months they get the opportunity to get the report card and say, how well is this company doing? Do is this something I want to buy or sell? So that first earnings report, obviously people weren't enthusiastic about it. The second one, there was, you know, maybe a little bit of a problem because it was, you know, pulled back to the VWAP from the higher earnings report, but then it got stuck below that one and it looks like they had two bad quarters and look at how the VWAPs from the beginning of the earnings report, you know, acted as resistance and more support on the first one. And as resistance on the second ones. I mean, you can't make this stuff up when you look at the chart, I still do. I've been using the anchor VWAP, you know, since 2003 and it still blows my mind when I look at it and say, it just hit it perfect. And then just a beautiful rally occurred or, you know, fell apart from. So again, here, you know, on this one, on the white, there was a little bit of noise around that area. Let it, you know, pull back down hard to the anchor from that low. And that low was six months prior. That's May to November. It settled down, but then the buyers regained control. So at that green arrow, I would, you know, anchor another VWAP and say, now I want to measure this rally off of the major rally. Anyone know what we call that when we set a new anchor to the touch of the buyer anchor touch? Handoff, yes. You read the book already. So same thing in a downtrend, you know, rallies up to it are often active resistance, but it's not always perfect. So we want to use that as the place to observe our analysis on a shorter term timeframe and find evidence that it's time. So I look at the daily timeframe and say, here's the big trend. I'm not going to short it right here, but if it starts to back away from it on the shorter term timeframe, as it's just breaking below a key level, I'm going to short there with my stop above the most recent relevant lower high. So this is kind of my favorite part. And I should probably change this because I'd make it earlier because, you know, all last year and, you know, late 2021 and all of 2020, well, first half of 2021, the mantra for modern was by the dip, by the dip, by the dip. And I would just shake my head and map just these people are going to get murdered because these stocks are in downtrend. These are not dipped. These are stocks in downtrends. These are patterns of lower highs and lower lows. It's not a dip. A pullback in an uptrend, if it starts to bounce away from it, then you can say that was a dip. But, you know, don't buy the dip, buy strength after the dip. So we don't want to buy the dip and I don't think you want to buy breakouts. Not most of them. You don't want to short the lip. So if you buy the dip, like in these red highlighted areas, the question is what if you bought on, you know, the third day of this pullback. Well, then you had to wait for, so these are weeks, actually. So on the third week, you had to wait three months for it to get any momentum. And if they didn't scare you out with your stop, I'd be looking and go, man, I've been in the stock for three months. It's doing nothing. Meanwhile, all these other stocks are going, I'm going to sell that dog and get into something that's working. So we don't want to buy the dip is the way I do. Because then where do you say your stop? And if you buy the breakout, to the new high, you're often getting in after the stock has made, oftentimes there are about an eight to 10% rally in the three to four days prior to a breakout. And then when I own the stock at these points, I always sell some on the breakout because I look at it and say, well, it's uneducated money buying the breakout. They didn't consider this stock was up 8% in the last three days. And how often do we hear people complain, the breakouts don't work anymore? Well, it's because you're buying extended breakouts. If you've got a real nice tight range and it breaks out of that range, I'm off for buying those, but not buying this breakout up here, right? So as it hits that high, and I don't want to buy in here where I've got all this risk, maybe it's just going to fall apart and keep going down. So I want to buy when it gets above the volume weighted average price from that prior peak. Because at that point, when we anchor a VWAP there, we would have maybe done it on day three. We look at this and say, okay, the sellers are in control right now. So if you look at the FTSE and look at the most recent high about three or four weeks ago, we're still below that VWAP, but we're also hitting the year to date volume weighted average price, the volume weighted average price from the recent low and from a lower year ago. So as it gets back above that volume weighted average price, I know that the average buyer in here, I know with certainty is now in a winning position. I know the average short seller who shorted this big candle down in here, the average participant is now losing money on the short side. The buyers are in control. That's where I want to buy. I don't want to buy over here on the breakout. I want to, and I don't want to buy the pullback. So I don't want to buy the pullback and I don't want to buy the breakout. On the short side, the same exact is opposite. You know, people here all the time, oh, just we're going to sell the rip market. Well, they don't sell the rip. What if it keeps ripping? I mean, you know, there's no worse feeling than shorting a stock at 25 and a half and then two days later, the stock's at 29. If you're in a short, you know what your risk is. It's unlimited, theoretically. There's no guarantee that it's going to continue down. The trend once established is more likely to continue than reverse. But if it does reverse and you're short at 25 and a half and it's at 29, it's at 30 and it keeps going, you know, the fear is real. The losses are real. And we've similar don't want to short those breakdowns because they've already had big drops. Look at this one, the drop from 36 to 30 and then broke down. So it dropped 20% and then shorting it right here. Sure, it wouldn't work, but not as well as if you shorted there with your stop above that most recent high. So we want to sell short weakness after the rally. So once the sellers have regained control and set our stop above that most recent relevant high. These are a couple of trades just from the last couple of weeks. This was Mondales and DLZ. They make Oreos, I think, or something like that. They're food people. Anyways, the stock went on to become a monster. I sold it ahead of earnings, but on the daily chart on the left, so what we're doing is combining multiple timeframes to find this is my favorite type of buy. We've got a stock and established uptrend. So if you look at the stock in that box, well, in this area where it's below that, it was set the anchor to that gap, they kind of signaled the end of that big rally from 63 to 70 and it began a pullback. So probably on this day right here, I would have set an anchor to that gap and said, okay, the sellers are in control from there. And this is exactly what I did. And we were stuck below that VWAP for five or six days below that anchor VWAP. And then we saw a little bit of a battleground right there. And that was the process of the buyers regaining control. The short sellers might've been trying to short it to hold it back. They couldn't hold it back. That green dot, that's what I like to buy. It did break out past that. I think it was $71.70. I don't know why I remember that. No, you know what? I bought it at $70. Yeah, I think it was $71.70. I sold my first third on the breakout and then it kept going. I thought, I don't care. But then the next day it pulled back a little bit. And then it made those higher highs and higher lows. I didn't sell on that gap lower because I never sell in the first five minutes. I wait for that first five minute low to be established. Then if it breaks below that five minute low on minute six, then I'm out. But I always give it five minutes. So I, and that saved me countless times from just throwing my stock away the first thing in the morning. But that's what I want to buy. And I sold it on that low there at 72 because they were reporting earnings the next day. Well, I thought they were, but they actually reported it a day after. Then I went to 75, then they reported earnings. I think it's like 83 or 84. And that doesn't bother me. I knew what I was in that trade for. I knew I wanted to be out before the earnings report because it might have just fallen apart. And this was almost the same time. This was, you know, on the short side. I set a couple of anchors to the recent low the blue year to date. And then the anchor from this gap lower, which is in that box. That's that first big red candle. So the buyers took control for a little while. The sellers defended it the year to date blue anchor VWAP. And then as it broke down over here, I shorted it. And that's, you know, that's obviously not going to happen every single time. But had it not, I would have been out with a small loss. So these are the types of trades that I spend my days looking for during the day when I'm not, you know, when I'm just have a position on I've set my stop. I'm scouring through stocks, looking for these types of setups. That's what I do every day. So here's our kind of wrap up. And I think I'm actually doing pretty good for time. Oh, I'm a little over. Apologies, Ricardo. So to me, it's the most powerful tool I've ever come across. And it really wasn't until 2015 where I really was able to appreciate it as much because that's the first time I convinced the trading platform, TC 2000 to add the point and click anchor to their chart. Now it's on trading view like most of you use and I encourage you, even if you're not convinced by what I'm saying here or what I've written in my book, just play around with it. Add it is another tool to your analysis. I'm not here to tell anyone how to trade. If you've got something, your sunspots work for you and you're making consistent money, it doesn't matter what everyone else is doing. Keep doing what works for you. But if you add this, I think, and in fact, I promise it's going to add another level of confidence to each of your trades because you're going to know with 100% certainty who has control since that gap or the earnings of the Federal Reserve announcement or the breakout or a breakdown, swing highs and swing lows. If you follow me on Twitter, I put a lot of these things out there. I put one on Tesla today. Tesla's rallied up to a prior level of support that has the potential to become resistance. And it's the anchored B-Weft from the year to date. It's the anchored B-Weft from the most recent high. We're still above the anchor from the earnings eight days ago. But if that breaks, I think lights out for Tesla for a little while. So it's in a really critical level. I'm not short it. I don't want to be short it until it breaks down with conviction. And then if it breaks down with conviction, I'm going to set my stop. So if it reverses, I'll take a small loss. But it's setting up as though maybe it's a short sale. So those are the things that I look at. These are my two books. If you've seen them or haven't, there's, I don't know if they're giving them away, but there's a stack of them outside of the anchor D-Weft one. And that one is also available on Amazon UK. And there we go. I didn't do too bad on time, I guess.