 Welcome to the channel. This is reliable Rudy and today. We're going to finish our Apple charting series And then we're going to move on to some some more Examples sort of like Apple, but they're going to be requested by the viewers So my goal is to have viewers request tickers and I will evaluate them through the entire reliable Rudy process But in today's video, we're going to be going over an example swing trade I call it the back test of the neckline and how I think that trading strategy Corresponds with the Apple's price today, but first I'm not a licensed financial advisor Everything in this video contains only my opinion and is for entertainment purposes only so Real quick we're going to go over a back test of the neckline. It's very simple. You have a left leg Here is your fall in stock price. You have a left bottom be made Now this run that the price goes up is going to form your neckline Now this could end up turning into some sort of double top structure where it gets hard rejected But ultimately this is where our neckline is going to be formed now from this double top I'm looking for a right bottom that is higher than the left bottom and That is going to be followed up by a Extended right leg now when I say extended right leg it could extend however much it wants to But it's got to extend over this left leg. So let's go over it again. We have a left leg We have a left bottom. We have our neckline. We have our right bottom That's higher than the left bottom and we have an extended right leg that reaches higher than my left leg Now all that leaves left is the back test of the neckline. So let's say in this trading example I Don't want to take the very tippy top price. I could Potentially buy a put a small order in for the exact price But I don't I want to be a little bit picky with this because and you're gonna understand why here in a second But if I was going to pick a price I'd want to take the double top and I'm saying that if the price ever falls to right here I'm going to buy it for a potential swing trade Now how I'm going to calculate this this swing trade is with a risk reward strategy Now what is my risk going to be? Where would I potentially be looking to sell this stock? If? I'm messing up. Where would I potentially sell this stock if the price kept falling from where I bought it? So I bought the neckline at the price keeps falling I'm saying right here that this is going to be where I put a stop loss in below this double bottom Now the price fluctuation from this is roughly 36 dollars. So obviously this example is a little bit On the far side, but if this is my risk reward, I'm going to draw out a two to one a three eight My bad a one to one a two to one a three to one And I'm saying that If I have a thirty six dollar risk a three to one risk reward puts me at 36 times three a two to one risk reward thirty six times two and a one to one risk reward is a thirty six dollar Trade that is what I'm looking to get out of the stock So I hope you can understand that if I don't explain that very well It's I don't I don't know how us to explain it, but we're going to go into apples chart and see if there Is any examples of this? Now I can see my very first look right here is this I'm looking for higher lows like this Now I can also see I have a left leg I have a neckline I have a right bottom and I have an extended right leg that reaches over top of my left leg Now I'm going to draw this one out for you, but this isn't the one we're going to talk about very much So here's your neckline that gets formed Here's your extended right leg now I'm saying now where would you want to put your neckline now back to my example? You have this double top structure, and then you have this higher low Where am I going to want to buy take an entry on this back test of the neckline? I could go right at the start I can see on that very first candle you actually do get some solid buying pressure But you see the price drops a lot lower Now if this were my entry for the back test the neckline you have multiple trading days right here where people can fill out a position for a swing trade and If I were to be set in a stop loss I'd probably set a stop loss right there now one the one risk reward Probably puts me right at this double top this congestion right here Now I could draw out the rest of this trade But we're going to jump into the next one because I think the next one holds a lot more weight to it So we're going to clear this drawing and the one that I'm looking at is actually right next to it So I can see I have a left leg. I have a neckline I have a right bottom and I have an extended right leg But what's interesting about when this price falls right here? We never actually quite reach that neckline so Let's say I was being greedy and I said well I'm going to wait until this neckline and the price is sitting $3 away from my neckline. No, I'm waiting for that neckline. Okay. Well, you missed out on it Well, you can see when we come back and eventually back test this neckline Look at this wick of buying pressure right there You know how long these guys waited for this price to get there from October to May They waited over half a year for the price of Apple to get back to that neckline But that patience paid off So we're going to look at this trade now going into our left Our left leg. I'm going to draw my left leg real quick. That is the that is the fall. I'm looking for I'm looking at Well briefly show this example So you can see this nice w we had our extended right leg And now I'm expecting the price to eventually back test the neckline. That is theory. That's all it is So we're going to draw this trade up But first I keep saying but first look at this five-wave structure at the downside. We got a one two three four Five now just so happens that we put a higher low in off this five-wave structure One two three we have a clear five-wave structure and a clear ABC correction to the upside ABC Now right here. We just have another five-wave structure one two three four five Now you could say this isn't a wave one you could say this is a waved one and this is a one two three Four now after a wave four you're expecting to wave five now You see how he set this triple bottom all three of them lower highs This is a bear trap because he bears are expecting this price to get taken out and For the price to eventually trade back Down to this gap you can see on this day we gap up the bears are saying okay. We're going to push the price to that gap But we hold above that the bulls hold us above that price How interesting right so you have a potential five-wave structure a potential ABC correction that Looks like it could be another five-wave structure But holds and we get our X our extended right leg So that's a little bit of going into our previous videos I'm not even gonna draw that up. We're actually going to focus on our trade So if this is my back test of the neckline, where would I set a stop loss? Well, how about this price action right through this time period right here where we can't decide for whether This is a five-wave or an ABC or how about how about right at the bottom of this because there is a lot of congestion right here That we're just not sure of and we have a nice set of support to set a Our stop loss at so we're going to set that up right there and I can see this is roughly a 13 dollar risk reward So if I'm going up from 135 I'm looking for 148 so that line right here is that 148 that's our one the one risk reward Now I'm looking for 61 right there. That's a two to one risk reward and Our three to one risk reward is going to put us at 174 roughly Now give or take this is how I would have probably had the trade set up now If I was looking to buy it I probably would have bought it on this on right here But I would have been very eager to buy more on this low now I'm going to show you why now I'm going to mark this horizontal line with a different color We're going to make this one white now I can see Not only did this neckline have really good support, but you also have a short-term neck line inside of my risk area so I can almost put Good money down on it that if people were buying this neckline for this reason They were probably interested in buying more of it at this support bill right here Because this is almost looking like another neckline So it wouldn't it wouldn't surprise me in the slightest if on this day you had the same exact buyers as the people on this day, but Looking more at the trade we're gonna take this white line out. I'm getting off track. I know this video is Man getting a little long We're close to wrapping this up so I can also see at my one-to-one risk reward So here you get triggered in on the trade you can see we put a double top into our one-to-one risk reward You have more opportunity to buy it now our current price is sitting at our two-to-one risk reward Isn't that strange now looking at today's candle From the price action today. This is not a bullish looking candle. This candle is telling me, okay We're going to come down fill this gap probably meet in with this trend line that we've had set in multiple videos How is the price gonna act from there? Well you have potential double top that you're gonna have to monitor But if you can get through this it's potential that we can get this three-to-one risk reward Now what do I also see at my three-to-one risk reward? We're going to zoom in on it this line right here that I'm hovering over is my three-to-one risk reward I Can see we have a gap filled no more than 90 cents away from where I had my four to one or my three-to-one risk reward marked so if we can't find a way to get over the 702 retracement and This trend line holds The next place on my chart that I'm really focused on Apple's price is right at that $175 gap because that's also meeting in for a three-to-one risk reward on my back test of the neckline trade that we set up Now I hope you guys can see exactly what I'm looking at right here before I finish this video out I'm going to draw this in one last time So that you can see exactly what I'm looking at. We might even switch it to a week chart So there's my extended right leg Now I'm saying one day the price is going to back test the neckline and this is the price action We've had from the back test the neckline those neckline buyers. They're they're making some good money off of this Not only all kinds so all these videos that I've made is all Corresponding evidence not evidence, but corresponding to what I'm looking for They're all telling me the same exact thing during this time period and that this is a little bit of a bullish time But is this a time where people are going to take profits? I don't know. I don't have a crystal ball I'm just presenting the stuff that I go through in the reliable Rudy process and This is going to wrap up the Apple charting series. I hope you guys enjoyed the content as I mentioned before I'm looking to make videos on viewer Viewer Recommended ticker. So if you guys want me to look at a particular stock now it can be I Would prefer them to be profitable if you guys are still listening to this video But if they're not profitable, you know, I can work around it and make different types of videos on that But that is going to wrap up this video. I hope you guys enjoy it and thanks for watching