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We're at it again, folks. Today we're going to talk about range trading, your go-to stocks. The stocks you keep track of every day of every waking moment that you know, like the back of your hand. If you don't have this type of list, right now is a great opportunity to be able to build something like that. So let's talk about the spy here. And there's a couple of things I want to show that I think can help others. It's related to measuring moves and how controlled it can seem in these times. So this is the regression channel I shared with you guys a few weeks back. As you can see, and Mario mentioned it in chat the other day, he shared a chart that showed when and where it broke. And as you can see, this was the daily candle that followed that. It broke in after hours and this is the day that finally did it. As you can see, when it pushes, it pushes and tries to reclaim the channel, right? They're trying to get it back inside the trend, get back in the trend and continue up. So if you confirm that we've broken outside of it, here's where it gets choppy, okay? The choppiness comes from the fact that we're inside of all these retracement zones, okay? All these Fibonacci retracement zones, and if you don't believe Fibonacci doesn't, if you believe Fibonacci doesn't work, that's fine. It's up to, it doesn't matter, Fibonacci works when you apply it in certain scenarios. Sometimes it don't fucking matter at all. Like in the stock is not going to behave even close to the Fib levels, okay? But in other times, it works. But it's all about drawing it correctly. You have to draw it correctly, you have to have a system of how you draw it because if you don't know how to draw Fibonacci or the system that is usually followed when drawing Fibonacci, your levels are not going to ever, ever match up, okay? So Fibonacci does not work in small caps. You don't ever go down that road. That's a pipe dream. I tried to make that shit work. It don't work. Don't fuck with it. This is large caps, large caps. It works in certain scenarios. It's not a one shoe or one size fits all, like you can apply it to everything, okay? So just take it with a grain of salt. But here is what you need to know, okay? When you measure from the top, from the all time high to the bottom of the bounce, okay? And you put on the 38.2, 50, 61.8, and the 78.6, which are your most common Fibonacci's. These three are like your power zones, okay? They're the most reliable Fibonacci levels to 78.6, and I believe there's like a 23. Some other shit down here. Those are less important. They're not strong Fibonacci levels. These three, the 61.8, the 50, and the 38.2, those are going to be your most strongest, those are going to be your strongest. And now you can see what's happening. The red line being the three, or the 200-day moving average is hovering right around that whole dollar of 300, and the 61.8 is 293. We tried to break it. We couldn't do that. Basically, what this means is that we've retraced nearly two-thirds of this entire fucking fiasco, okay? 50% was 278. As you can see, we jacked around that level for quite a while. That on the way back down, 278.76, so what I wanted to show you guys was where this could possibly go, okay? This could possibly end up going in, where's my chart, let me see here, there you go. Let me pull this down for you guys. So what I want to discuss are these different scenarios of where this could move, okay? Oh, perfect. That was just what I was thinking as well, just what I was thinking. You took the words right out of my mouth. So there's a tool called Fibonacci Projections, okay? Basically how you use it is measuring dips and pops, okay? So yeah, Ben's over here dropping lines. So what I want to explain is when you measure a move, okay, let's say for instance we finally get a top, and now we measure the distance of this pullback and then we project it to a potential high. So once this candle happens, we believe that that is a potential high. So a retracement of this entire move would be projected here at 256, okay? Obviously that didn't work, it stopped at 61.8, reclaimed that, 61.8, and that, boom, you're still in a very bullish uptrend. Obviously a lot of this is hindsight, but now what I want to explain to you is what can potentially happen in the coming days. So what we're going to do is we're measuring this move here, projecting it to here, and as you can see, we've retraced this entire pullback exactly to the range, okay? An entire range would be 278.76, and this is when you have coupling, I guess you can call it that, coupling factors. The fact that the move retraced 100% and it's also at a 50% retracement level from the entire move, this is a big psychological level, this 50% number is okay. So once it retraces that entire move from there, it could easily have another leg up. We could easily see continuation to 300. That's not to say I'm bullish in the entire situation, but it is easy to be done, okay? Here's what option to trade. Open interest and volume. Oh, also, if Reddy's still here, let me get back to his question when he asked about the back testing. How do I back test a new strategy? So first off, obviously you view the, you just watch the charts, okay? And you record how many times it's working, all right? Just mentally or physically writing it down, okay? You're just, the best strategies come from your perception, it comes from what you see with your eyeballs, okay? Forcing edge into something is so hard to do and it's pretty much, it's a fool's game, okay? And so if you perceive a strategy is working, it's best to sit and watch it work and you have to do it religiously too, okay? You can't, for example, watch it one day, skip it tomorrow and then watch it the next day and then skip it for two days and then watch it the next, you got to do it every day. Every day that you come to the market, you're tracking that strategy and what you're doing is you're simply recording charts, okay? So what I do, and this is why I have so many charts on stock charts is when I see a strategy that I want to test, also stock selection is something you can test as well. You can test your ability to choose the right trade and that's called stock selection. You can test your ability to choose the right stocks and the way that you do that is like what I do is I record my watch lists and I go back and so like, for example, like you guys saw it, but I think maybe in ZM, yeah, you see these charts where I like have the intraday and then I have my daily lines like this. What I do is I have that in Evernote and then I print it out, oh, it's under my laptop. These are all of my watch lists and I track it every day and I print it out and I take notes on it that way that I can remember my, like you see my notes at the top of some of these, like 10.30 a.m., it's at support. I need to cover. You need to at least have one point of difference at the open for the line to work best. That's, I back toasted that. And so straight out of the gate, I'm just building a list of stops that I want to test the strategy on and then I'm recording just the outcome of it. Okay. I'm recording the outcome of it. After that point, I go a bit further and I will do a back test where I have a strict exit and entry rule. So the video I did on proving that there's edge and pivot points, that video I did for the low hanging fruit and continuation plays, like Mario mentioned here on NCLH. Low hanging fruit plays, that back test was in that video. So proving which pivots I want to play is inside that. And so you go to, I think you go to large cap strategy. It's on page two. Yeah, there it is. So it's part of trading basics as well, but this video proves how valuable pivot points are. And this is a step that I go into after I've done that visual analysis. All right, guys, we'll see you later. Have a good one. Enjoy it. As always, love you. Thank you so much for watching our video. If you want to see more of our videos, please subscribe to our YouTube channel by clicking the button here. We do our best to post a new video every single day. If you have any questions about MIC or any general trading questions, please text Tosh using the number here. Also, stay up to date by watching some of our most recent videos right over here.