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It's Harry Haas here and today I'm going to be going over two trades that I made last week that were pretty much identical using the exact same pattern and both of these stocks were not hot chicks. Both of these stocks were stocks that just kind of gapped up in the pre-market and there wasn't really a lot going on with them until they got a kind of strong opening push and then they kept going and ended up turning into kind of big runners. So I'm going to be just going over those two kind of trades. As always, I'm not a licensed financial advisor. Anything I say in this video, it's not financial advice. It's purely for entertainment, educational purposes, and that is about it. So yeah, let's get into the video. So the criteria for this one is number one, it's not going to be the hot chick of the day. Very rarely will you see a hot chick of the day do things like this. And the reason being is because a hot chick is usually something that's up 100, sometimes up over 300% in a market like this. So obviously this pattern is not going to work with that. What we're kind of looking for as I just kind of explained is that we're looking for kind of a strong opening push in the first few minutes of the day. And then after that, we're kind of looking for a few minutes of consolidation. Now this can be two minutes, this can be four minutes, this can be sometimes eight minutes. But the point is that we're trying to be patient and let the stock show us that it does not want to go lower. And we're kind of looking for some consolidation in both these scenarios. It was above VWAP. And we're deciding the stock show us that clearly it does not want to break down. Also when we're entering the consolidation, we're looking just to be risking below that consolidation period because if we risk any more then we're just going to be taking on unnecessary risk. And most likely you will be over the pre-market high. So it's good to have daily lines ready if you're looking to kind of play an idea like this. It's good to have kind of stuff ready. I actually went and kind of back-tested this pattern a little bit on some previous runners. And it's actually one that works pretty well. Both of these stocks, you know, as I already mentioned, we're not really the hot chick of the day. There were other things gaping up. There were things that people cared a lot more about. But I think it's good to kind of make a watch list of other stocks that are also not the hot chick of the day, if that makes any sense. I try and make a plan on two to three stocks in the morning. I mean, you're going to have stocks that are very easy to borrow, have things like SSR on that are still doing a little bit of volume, but people aren't necessarily paying attention to it yet. And then all of a sudden when the stock starts moving higher, a lot of people like to try and get involved with the stock and like to trade it or buy it on dips to try and be early or whatever out of FOMO because they missed a move on another one. And all of a sudden we have two hot chicks in the morning instead of one. And what usually happens is that the stock that is usually or was the hot chick in the morning, usually it kind of steals a little bit of volume away from that kind of morning hot chick and then the volume starts to transition into the new one. So it's kind of the money starts to come out of the old hot chick and the hot chick, the old hot chick starts to kind of fade and this new one that now we're looking at now, the money starts to kind of pump into that as well. So I just thought that I draw it out as well because some people really like a visual even though I'm going to be showing you the two charts that I traded on. I know that a lot of people really do like a visual. So I just thought that I would go ahead and make one. And basically, we kind of have a pattern similar to this where we have a stock kind of, you know, gap up in the morning, maybe 20, 30%, not really a big gap up, not really something that people are buying, paying attention to. Maybe it has like, you know, 50 to 100k volume in the morning. Sometimes it has half a million. I mean, it really depends. All I really care about is this kind of strong, strong, strong opening push in this consolidation. I mean, the volume back here, I mean, as long as it's kind of over 100k, I think we're good. I don't really have a set criteria. And for a lot of things I don't really have a set criteria because for a lot of stocks I traded, I found that I was kind of, you know, putting myself into a hole where I would see stocks that were uptrending and they had like a 10 mil float and I was like, oh, well, my criteria was I only long low float, so I'm going to be disciplined to not trade this. After you kind of watch three or four stocks with higher floats start to move higher, you then start to say, okay, I'm just going to start trading this stuff line to line. I'm going to start trading this, you know, based off of, you know, the lines and based off of, you know, pretty much that. And you know, for me, I mean, this type of stuff, I'm not really a patterns trader. The type of trader I am is like, a lot of people are like, oh, Harry, do you trade off the tape? I'm like, yes and no, like I'm really a whatever works type of trader. You know, if this pattern is working in this market, then I'm going to look for it and I'm going to use it. But when this pattern stops working, I'm just going to stop using this pattern. It's as simple as that. Instead, too many people get caught up in this, oh, I need to be only trading this pattern. Oh, I need to only be trading this float. Oh, I need to only be trading this criteria. I need to look for the holy grail. I need to look for the 100% win rate. I need to look for this type of stuff. And well, yes, our kind of human brain is always trying to look for that 100% win rate. I would rather trade this pattern four times and be wrong twice cutting here. And I would rather be right the other two times and selling up here because the risk reward is still great. And that's something that, you know, I think when a lot of people get into the market and they start learning things, they want to try and find that 100% pattern. They want to try and find that, you know, 100% holy grail. My system is going to be the best. My this is going to be that. But really, it comes down to one single thing, guys, and it's risk management, day in and day out. That's the holy grail. Live to trade another day. You know, I kind of got on a rant there. But I think it's really important to talk about, you know, this pattern may stop working in six months, right? I may never trade this pattern again. Maybe tomorrow this pattern stops working. That is OK. We need to be OK with things changing. We need to be OK with saying, OK, this may not work again. But the number one constant, the number one thing that will always stay around and it has proven to stay around from years and years to come is the resistance and support lines. Those are things that have been around for literal generations. So I just thought that I would throw that out there. You know, I've been getting a lot of DMs on, you know, different types of things that I don't even use. And it really comes down to whatever works for you. If something's working really well for you, then make it a part of your process. But if it stops working, don't be afraid to cut it out. I think a lot of people are just afraid of change. And I think, you know, a lot of people are afraid of being wrong. And in the market, you have to be OK with being wrong. And when you're right, you know, obviously you need to be right, but you just need to be OK with being wrong so you can be right in the future. Anyway, that was a little bit of a rant. But here we go. So basically, yeah, I went ahead and drew this diagram. Now what we have here is IDEX. I traded it on June 22nd. And we got exactly, you know, as I kind of drew where we kind of, it kind of came down, but then we kind of got this strong opening push. And that really caught my attention because we started doing a lot of volume. But what caught my attention even more? See, I'm not a strength buyer. You're never ever going to see me buying up here. You're never going to see me buying. That's where I want to sell. I'm always selling into strength as a long trader. And as a, you know, as a short trader, you can kind of do the, you know, shorting into a pop or shorting after a death candle. And then covering into weakness, because I think it's important to cover into weakness and then sell into strength or short into strength or whatever you want to do. So in this type of scenario, what we got was kind of this dip down. And then we got the strong opening push. And instead of just going and longing it right here, I said, okay, I'm going to be patient. I'm going to wait for the stock to show me what it wants to do. This is also a really big patient trade because, you know, I was, I could have had FOMO and tried to chase up into here, but instead I didn't. What I did was that I just, I literally just sat and I waited for the consolidation and how many times they try and break down here, one time, two times, three times, four times, five. So five times it tried to break down. Okay. And, you know, when it tries to break down so many, so many times, you're going to have so many short sellers up here saying, oh, well, this is a, you know, a lower high. So this is definitely it. This is definitely it. And you know that every single short seller has this kind of three dollar line as the risk if, if, because as a long trader, I know that there's going to be short traders listening to this video as a long trader, you need to also think like your enemy as well. And I mean, I really don't have any enemies, but as a long trader, you really are playing against short sellers. So what I was thinking was that, okay, you know, this stock has failed to break down so many times. And we know that if I'm a short seller and shorting into this consolidation, the minute this perks up, this was a relatively easy to borrow stock on the day as well. So just keep that in mind. But we know that if this perks up, you're going to have a lot of people stubborn thinking, well, I mean, this, like, as a short seller, your mindset is like, well, it's not the hot chick. So it can't, it's not possible to make this type of move. As a, as a short seller, you're like, well, that's not doing that much volume. You know, you're saying all these things in your head why you shouldn't cover now and why the stock's going to go lower. And when the stock started creeping up higher, and I actually bought it just because it just couldn't break down on this kind of consolidation. And when it starts to creep higher, you say to yourself, well, I can add a little bit more cause there's no way it's going to go any lower. There's no way. And then it starts to creep up a little bit more. And I mean, you're down, you know, as a short seller so much. And these are probably all shorts covering as well. And maybe some longs chasing too, causing this type of move. I know that this type of move is probably just longs chasing and shorts just getting their backs blown out. And, you know, that was just kind of kind of what happened where we, the reason why I bought this dip was cause I felt that we hadn't gotten enough volume to really say, okay, you know, I felt that we were really still on the front side. I mean, I kind of wish that I had a maybe sold up here, but I actually added to the position because I really felt that this type of move was coming. Because it was such a creepy type of move where it kind of came up and we weren't, we were doing some volume, but it wasn't like heavy, heavy, heavy volume. It wasn't like low float, up 300% at the open type of volume. It was just creepish volume. But anyway, thanks for watching guys and I'll talk to you guys later. 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