 Hey, welcome folks happy to have you back with us and This one I decided to do a little differently than usual instead of showing you what happened during the trade I am going to show you what happened before the trade how I prepared for the trade and I don't know if you guys Keep on having a quick look at all the analysts showing their watch lists every morning But if you saw my watch list, it was only one ticker and it was a Tesla Following the FOMC minutes this morning as of many Thursdays and following News on jobless claims on again Thursday We had a bearish morning. We had a huge drop spy came down huge and a lot of tickers followed but what I like to look at is Tickers that have been beaten up and this is the four-hour chart and I'm going to show you This is the mag D. And if you look at the bottom on the Stochastic momentum index, we're still really low and the RSI is touching the lower the lower line. I Prefer And now I showed you the four-hour, but I really like to look at the one-hour chart One-hour chart same thing Look at the stochastic. How low it is here at the bottom. This is at the open today I'm gonna put this line here. This is at the open or just minutes before the open so basically When it's 8 or 9, I don't know what time you prepare your trade, but you're on your trading day But look at it. We're really low on the stochastic and we're really low on the RSI and we're talking low 24 and On the one hour on RSI is pretty low so we can expect a bounce from here um a Bounce like it could just move back up a little bit to Put the pressure back on the the sellers so buyers are going to step in so we're going to see a move up So basically what I like to look at is where we're standing and if you see here on when we look back This is pretty much Where we were around 625 ish or so Sorry, I'm having a hard time here putting it at 625 ish, but you know Let's pretend this is 625 So you see that there's this high on this point and Then it's struggling to get up It doesn't and then boom it gets through So we know that this was Previously resistance and now it becomes support and if you look at the five-minute chart just before the day started This is pretty much what happened it bounced right on that support. So you know That if we get under that we're starting we're stepping into bearish territory sellers territory now if you were long on Tesla since you bought it from let's say in the five hundreds and You have a stop loss from from the day before that you know the day Started four days ago into seven hundred and then it's coming down. It's coming down So you're sick of it and you put a stop loss Let's say yesterday around 640 when it opens this morning. What happens it just triggers And this is what exactly what happened at the bell it triggered it flushed, but straight up it went back up, right? so You have two scenarios here This Was a trading plan and this is what I said in and in the watch list. Let me draw that again. I said 625 Is support and what I like and you know, you've seen my videos before I like to look at the pre-market highs see what happens and Right away Basically, I expected, you know, this is what happened and then it started moving up Pass this point and literally pass this point. I Thought we would get this and move on again like this But not spy decided not to move that way Volume decided to die here. Look at that. Okay So I decided to enter here as it broke the pre-market high thinking it would Do a Tesla move like it's often does, you know, you don't even have time to to get in however. What happened was it retested Support 625 support obviously 625 would have been a much better entry on that support dead on, you know, very precise So with Tesla or in any other trade, you have two choices either you get in quickly when it takes off Above pre-market high or you wait for a pullback and this pullback was dead on previous support Now this is what happened. This is why I Decided to stay in the trade even though, you know, we started being pretty red at this point, but This you know that if we start flushing below this point, what happens is we're stepping into bearish side bearish territory Meaning that all these guys Supporting and buying are no longer there. So basically you would have been stopped out or you set your stop right there And it bounced and then it became the back to green however, the idea was to find a clear Target and You've seen my videos before I'm sure and if you haven't well look for previous support. We had one Right here there was support right here first line of support and if I recall it was 642 rich or close to that sorry, this was in 640 and This is the line I called Basically, you knew yesterday Tesla boom it bang on it bang bang bang even after after hours it was still holding this line. So basically I'm expecting Not to find any buyers until we find that line we find that Those buyers on the other side of the line. We're still below the line. So basically this is where Took the first the front of the first profit and then let me get rid of all this We all know that this is the line that yesterday You know it bounced on this and then it it would support and now it becomes resistance my line is a little high, but you see what I mean here it becomes resistance and pretty much this was the area where I was expecting the Second target and I said if we break that well, we're gonna go a little higher and which we did and you see after market We're still after hours. We were ready to get move a little higher. So In the end To sum it up What I looked for when I started the day was first Why are we down? Why are we down on the market and how far is the reaction? Reaction was really strong and we were extremely down from yesterday's close on spot too much. I believe so and Who's affected it could have been either any other trades, but this one I felt was a little affected too much so you look at RSI RSI I like the stochastic Momentum index It's an eye Stochastic momentum index. I like to look at both here to see where we're standing on the one-hour chart and Then look third support Are we on old support sometimes Look, I'm you know, I'm not gonna show you the chart But I was looking at Facebook and Facebook I was expecting a pullback to the 640 line and we I believe we only went down to 642 So basically I was hoping you're hoping for a pullback to 640 you never got it and then it started moving back up yet So basically here we were on my support line and I didn't expect it to help didn't expect the whole thing to drop any further down Have a my my entry point was either a break up pre-market or on support Unfortunately, I was a little early, but always have a target and the target was either to move back up To the old Buyers and this is what we did. We started from the bottom and move back up to the the old buyers You've seen I don't know if this is the first video You're actually watching or if this is the third time you're watching the same one but a move back up to the old buyers is A safe area where you can take profit. It might move a little further See we went a little further on this one, but it's a safe exit as it is seen by a lot of other people as resistance So I hope this is helping and I guess I'll see you soon. Thanks for watching