 Welcome to Access a Trader, the number one community for those who are committed to taking control of their trading in order to achieve success, profitability, and longevity. Thank you for joining us. Here's Dan Shapiro to help you find your edge, master your process, and own your future. How do you determine if a price will break through or bounce, reject off a perfect great question? I want to use Kimberley as an example. Kimberley, if you guys remember, Kim asked on Friday, Kim asked on Friday, hey Dan, what do you think about Merck for potential bounce? You guys remember that? Fantastic call, Kim. If you guys remember, and first of all, how great is that? If they could actually have a pill, I have a pill for COVID versus a shot, and that's phenomenal. Because it's much easier to take a damn pill than to get poked. First of all, that's it. That's phenomenal news. But again, who knows how the stock doesn't react. So if you guys remember, let's take this out of the way. If you guys remember, and for all you guys who are joining us for the first time, when we talk about a 60 minute bounce, you see this, guys, everybody see this orange line? Do me a favor. Just type a one in the channel. Everybody see this orange line here? This rising orange line? This orange line represents the highest probability of a stock bouncing. Because this is the whole macro trend for the day, not for the movement of duration of the interval of the stock, but for the day, for the whole day. And there's a high probability that if a stock comes into that level after the initial really, really big move, that this level, there's a high probability that emotional sellers or eager shorts or uneducated shorts are going to come in and meet technical buyers. Raise your hand if you're that technical buyer. That's us. We're the technical buyer. So the key for this area here, and remember, this is a moving average. This is not a concrete wall that the bounce has to come at 81. If you guys remember, Kim said 81 was the bounce on Merck, right guys? You guys remember that? She said 81 is the bounce on Merck, but remember, it's an area. It's an absolute area. Maybe it bounces 81.08, maybe it bounces 80.75, it's an area. So what we do on bounce plays, we call it the remount. And what the remount basically means is once the stock goes through, well, there's two things that can happen. Sometimes the stock stops. Sometimes the stock literally stops at the bounce area at the moving average. And if you guys remember, I missed a $4 bounce on Tesla this week, three cents away from my bid. One more frustrating, I watched Tesla go $4, and when you're bidding three cents below where it bounced from, below the bounce, it happens. It's frustrating, it happens. But the safest way to approach it, the absolute safest way to approach it is let it go through. Let it go through this area. If you guys remember, this area was $81, Kim said there's a bounce on $81 on Merck. Let it go through the area, and if you guys notice, it went through that area and put in a low of 80.67. Everybody see that, guys? 80.67 was the low of that candle. Everybody see it? So when it went back above 81, when it went back above 81, that is your entry. That is your entry. It's called remounting. It's remounting demand. It's remounting demand. So once you've got long at 81, you already knew your max pain of the trade is the low of this candle, which is $80.67. So you had a 33-cent risk, and again, when you're bouncing stocks, you're not going full-size. You're going quarter-size. You're going third-size. If you're an aggressive, really experienced trader, depending on how thick the stock is, maybe you're going half-size. So my point is, who the hell cares if you're losing 33 cents on quarter-size? It's not even a paper cut. It's literally, it's a fly that you're flicking. It's the cost of doing business. But what happened is, if you notice, once it reclaimed $81, right? Look how big this candle was. It went up almost $2 on the bounce. So when you ask the question, how do you determine the price will break through or bounce, you're accumulating data, right? You're accumulating data at that bounce area. Usually they will defend that area. I don't care how bad or how good a stock looks. When you come into a moving average, whether it's a supply, excuse me, whether it's a Bollinger Band, right, Afra? Whether it's a Bollinger Band, whether it's anything, a linear regression line, they all have pretty much equal balance of determining how good or how bad the stock will react in that area. So you're making, you know, you're making a determination on that price level. If it starts building below, right, if it starts building below right away and it doesn't remount, you know the sellers have control. But you're not buying it anyway until you get a, until you get at least an initial move that blows through the supply anyway and then reclaimed. So you're not trying to sit there and go, well, the stock is not moving, the stock is not moving, the stock is not moving. You shouldn't be in the trade anyway. You should let it, the safest way, let it go through, right, let it go through. And when it jumps right above, that's when you're getting long. So that's when you're making a determination of how weak or strong the balance potential is. Because realistically, and you guys know this, especially when we trade Tesla, Tesla should be putting up $1, $2 within, right guys, you guys know this, within what, within a minute or so, right? If it doesn't bounce right away and it goes up $0.40 and it stalls, goes up to $0.50 and stalls, you kind of know that, you know what, we're just not getting that bounce. It looks like the sellers are not giving up control of that area, use break even as you stop. And that's the whole point. Once you get into the remount and you get your first cash flow, $0.50, you know, take on the way up, right guys? Again, always put yourself in a position that you're not working for free, okay? You're not working for free. Train yourself mentally that every single trade, I don't care if it's a pivot. I don't care if it's a bounce play. If it's a rejection play at that area, it doesn't make a difference what it is. Always train yourself, you're putting yourself in a position. You got into the trade, you're putting the work, you did your diligence, you did your research, you're entering the trade properly, pay yourself on the way up. I don't care if it's enough to buy you a sandwich, you deserve to get paid. We're not into the hoping and praying business it goes. We're into the reactionary collecting data business, okay guys? So it's very, very important to understand that course of action itself.