 Boom What's up, I'm the geeks. It's a V here. Welcome to another video. So in this video, I want to show you guys One of the key indicators that I use in my trading that's gonna help you be consistent Or at least guide you to know when to go in or when to go out Alongside my VWAP strategy this indicator is really one of my key ingredients or one of my secret sauce that makes me Consistent trader so I want to talk about that one into this video But before we get started guys if you're new to the channel We talk about how to earn money how to save money how to invest and build wealth So that's something that interests you go ahead and hit that subscribe button any notification bell So you don't miss out on new content So when it comes to trading these different strategies again, I've done a video here on the channel where I show you guys My VWAP strategy So if you haven't already I'm gonna hook that video here so you can definitely go check it out And I have an updated video coming up about the VWAP strategy, but this particular indicator I want to show you today I want you guys to add these to your arsenal of tools that you use for trading So every trader has here on things that work for them. So this is not a one-size-fit also Usually when I tell you about stuff that I'm doing I expect you to go Try it in paper trading in some shape or form before you can start implementing it And even when you start putting it into Practice I want you to start small don't go a bigger position start trading small buy one or two shares Sell them see what your entry point is see what your exit point is then check Did you stick to your script if you stick to your plan? Did you go in with an idea as to let's say you go Getting in at $10. Did you get and don't want you're gonna get out She say you want to get out at 12 or $13. If not, what is your backup plan if it doesn't get to 12 or 13? Do you're gonna use a trailing stop? You're gonna use a bracket order Those are some of the things that you have to work in combination But again, those are things that I can cover in a separate video But today is all about this one indicator that I want you guys to know and this indicator is no order one But the stochastic indicator so as you can see here Stochastic you can go read about it. It's a momentum indicator and you guys know that I'm a momentum trader because I Like you when the price of the stock is gapping They call it gap and go strategy or momentum or momentum trading. That's my strategy again You find what works for you find a strategy that works for you So this is again for people that do momentum trading. So stochastic indicator you can go out read about them They actually explain how they do the calculation. I don't really care about how to calculate it because It's it doesn't it does me no good But I just want to see how it works. So I'm gonna work you guys through a particular example here using a stock So we can actually see how this indicator actually helps me to be consistent Or at least guide me to be consistent and again guys This is not just like a one indicator again when it comes to trading You know very well that you use this particular indicator alongside other indicators So I use it alongside obviously my secret sauce here is the V web this yellow line You can see right here. I'm walking this one right here That is the main thing first the second and then you have volume and then my stochastic indicator come in So again, let me walk you guys through it So V-wap strategy which uses V-wap so if you can see right here again My personal take if it crosses V-wap I start looking at opening a position if it's below V-wap, I'm not trading I can buy below below V-wap for a potential string trade, but not for day trading I don't trade below V-wap. So let me show you guys how this works. I gave you can see down here Now this is really clear. Okay, so you can see down here. This is volume. So stochastic. So V-wap stochastic Volume that is a deadly combination as to pinpoint when to get in and when to get out again in my experience So if we can just start right here, I'm gonna show you guys so market opens if you can see right here pulls back So this is a ticket symbol RIV and Rivian that just came out Like yesterday, so if you see market opens a pullback so for me I'm not looking at getting in at this particular point, but see what happens here. Okay, watch this When it pulls back if you can see K line and not in the D line So K is blue on my stochastic and my D is yellow or orange if you can see right there So watch what happens. So my K line is the goal line and my and my D line is the outline So in and out K is indicating to get in and then my my D line is indicating to get out So depending on which one is on the upside again, I'm gonna walk you guys through here So we can actually see how this really works. So see right here Market opens it pulls back. Okay, watch where my K line start crossing over My D line to the upside if you can see it crosses right here at this point and somewhere right here Look at how the stock bounces as that's squeezing back to the upside And you can see it continue that squeeze out to the upside and then test is V-wap So for me if I was looking at trading I'll wait for this thing to test V-wap But watch is how it fails right a V-wap. So the first test on V-wap it fails And look at that K crosses back to the downside, which means don't even attempt it So I'm like sitting there watching and this stays underneath V-wap and then give again right here It gets another attempt of V-wap and it rejects. So no confirmation for me So I'm not getting into this talk at this particular point again It pulls back watching what it does bounces again. Look at now K crosses to the upside Look at that cross right there. It crosses to the upside as we can see right here This is where it crosses and then test is V-wap and this is where the magic begins Confirmation first one many kind of to make a new high right there and we're up to the races So you can see here crossy look at that volume High volume comes right in and it pushes this thing to the upside So after after breaks V-wap here is kind of first one many kind of makes a new high the next candle I'm getting in somewhere here So I get my order you get in and then watch what happens. So in here I'll have a stop loss or I'm gonna have a trailing stop In this case, you can do a bracket order depending on your style again. You get in watch it right here It's just I'll call this a yo-yo's so it goes up and down up and down But notice the trend is heading up. So at this point my stop loss is somewhere down here So I'm not worrying about up here. So I'm still giving you room to breathe so it keeps it keeps trying and At this point watch where it goes all the way to let's say 121 122 Right here at the top here watch stochastic again right here stochastic. It's like you see high volume Spike and then the next volume drops drastically that is a good sign like hey time for you to take profit watch again volume spike and Then the next candle look at that volume completely drops. That means get out So at this point you get out and look at stochastic again. K is crossing to the downside and what happens Flushes so you could have sold up here and take some profit secure some profit if you probably were using a trailing stuff or whatever You'll kick you out when it flushes down here So and then it flushes down look at his grant again so Right here consolidated along this line and then crosses back to the upside and then the trend continues again Stats to go up again Get to the top here Crosses to the downside flushes or pull back I wouldn't say flush right there because that's not this is a flush right here But this is just kind of a pullback and then Another good entry point for this that you can probably see I'm gonna bring this right here So you guys can actually see so watch this right here It pulls back all the way below VWAP which obviously means do not touch Crosses VWAP fail why I would get in here because even at even the crosses VWAP it didn't give me the confirmation You see the doggies right there. I'm gonna zoom in so you can see see those doggies I don't like that. I want to see a full fully formed candle That would tell me that it's confirmation at least at that point so it crosses all these doggies I'm like no, I'm not gonna touch it. So I'm gonna wait as you can see obviously my weight was good because Right here pulls back below VWAP again and then test VWAP here doggie doggie doggie Still, I'm not getting in right here When it pulls back a little bit right here Next one minute candle set a new high next another next candle again set a new high So at this point, I'm looking for an entry somewhere right here And you can see if you get in here it goes up there if your stop losses way down here So you get it pulls back a little bit, but it's still trending up as you can see Still a training to the upside and at this point I'm if I if I'm in a trade I'm moving my stop loss and I'm following this slowly or you can just set a trailing stop But the reason why for a stock that I really move this kind of zigzag way a trailing stop will probably kick you out Faster if you put in a very tight trailing stop So usually somewhere between three to five percent would be ideal for a trailing stop But you make your own decision because if you if the money is in your town, you see that you're profitable You don't want to give back five percent of that Unless you are a greedy savage so you can collect that money and wait for another opportunity Because what kills a lot of people is they get in see profit. They're not thinking about securing that They all they to see like green everything is like it's green all the way It doesn't work like that it can turn around and flush it so always make sure that the birthday you have in your hand That's secure before you start chasing another one. So That's it. That's it for this video, but again, I just wanted to show you guys so again the combination Yeah, would be volume and then my my Actually VWAP volume and then stochastic. That's how that combination Really does work and then one little nugget for you guys each time you're trading and you happen to see you see volume spike drastically like right here You have to keep an eye on that one, but then one trick when there is a spike in price Let's say the price is certainly jump and the volume doesn't follow suit That is a no no that is a classic sign of a reverser So at that point some people would probably like all the volume just or the price just spike I want to get in before it keeps spiking No, the price will spike and then volume doesn't follow that means is reversing and the next thing You know, it's gonna turn around and flush right in your face again. You can see that right here Where you can see right here price jumps up, but volume doesn't follow And this candle right here and reverses and all we had was a downtrend So stochastic indicator That's a really good tool to have in your tool set of volume and VWAP those three indicators Will guide you to know exactly when you want to go in and when you want to you want to go out So that's something that you want to keep an eye on and again guys These are tools that you have to try them They work for me doesn't mean that it's gonna translate to working for you You have to try them in maybe in a simulator or paper trading and then also once you start trading using these indicators Make sure that you actually start small try maybe with one or two shares Before you jump in and start buying bigger size So start small test it see if it works so that way your losses are really minimal if you have any loss So that would be something that you can definitely do that would help you which you're trading again Let me know in the comment section what you think about is do you currently use stochastic or do you currently use any of the indicators? I mentioned here VWAP as well as volume. Yeah, let me know again in the comment section What you think if you're new here, we took about how to earn money how to save money How to invest and build wealth so that's something that interests you go ahead and hit that subscribe button and the notification bell too You don't miss out on your content also guys if you're looking to get started with investing Mumu right now has a crazy promotion where if you sign up and deposit any amount $1 all the way to $100 you get five free stocks at no cost to you have the links in the description below And as always guys, do your due diligence. Don't be a greedy savage. Stay motivated You