 Welcome back again folks. Tonight we're trying to show you the theory before we go to the reality stuff and we will be talking about the perfect recovery. Now, what are we seeing about perfect recovery is we talked about the recovery last week on many tickers and on many occasions, but what we see is a situation where let's say a ticker is trying hard to break through, trying hard to break through and again trying hard and it doesn't want to get through this line because it hits its head many many times and they know for all for a reason or another they go that way big time What to you would be the perfect recovery? Now in this particular case you might say well Here's a line, right? Because we're hitting a previous support line You are correct, but the perfect recovery would be we reach back up to the previous resistance now if this Was created by bad news Any news related market has been driven lately by news So basically if this big drop is news related what will make Such a difference that it will break through these lines these tops Do you understand what I'm saying? I'm just saying that if Before we had this bad news It was hitting its head on a top Now since we had the bad news It would recover to a certain level What will it take to make it cross this previous? Resistance level it would take something very huge. Do you agree on that correct now? If we break down Due to a very bad news on the market what I call the perfect recovery is a situation where we will rise Back to where we were Before that news happened it doesn't say that now we are Extremely bullish in order to cross that but what we're doing. We're pretty much erasing What happened in that bad news? It can be news related to one particular ticker Let's say a restaurant has a equal eye Outbreak and it just makes it Drop and first thing you know. Oh, sorry. It wasn't that it was Another virus that someone had so it's nothing related to that restaurant. We're going back up now. It can be lately has been related to a situation political situation in the world Creates a lot of fear we go down and then someone comes back up saying well We're doing our best to contain all this situation. So We are now coming back to where we were Before the extreme fear happened. I call that a perfect recovery So basically when you see a situation where There was a gap down or a huge drop Your final target no matter what on the day is to aim for a perfect recovery and this is the real reason why Are we Showing or saying or living in a world where the news that we had just presented then Is completely different? Are we in a situation where? All this fear of crossing the line is gone If the answer is no, well, you have all the rights to reclaim the line But you can be absolutely positive that it will bounce its head on this line once again now This let's say this was a gap down At the gate at the open You draw this again very for a cleaner situation Did this this this that's the end of the day and then we open it opening on the gap down on the next day Now if we rise all the way to here We are in a situation where it looks like on this day, right on this day It looks extremely bullish, right? Do you think it's going across this line without any? Rejection no it won't it's the perfect This line to this line. It's the perfect recovery and this should be your target Always I'm not talking about a long monthly swing. I'm talking about intraday perfect recovery It was yesterday two days ago something that is very close Expiration of a very close time frame We are looking at a perfect recovery on this kind of situation. Now. Let's move to a Multiple examples to show you exactly what I mean with this And before I take you to examples This one is The top line right I was mentioning we are trying to cross it The opposite let's say we have another situation night. I don't want to Mix you up in anything, but I want to show you what how to find the perfect recovery Let's say a it's on a downtrend instead of the uptrend it goes To a support line goes up comes down to support line goes up Come down to a support line Like all this this here is kind of a downtrend This triple bottom kind of thing right then if we were to open to the downside here obviously Your perfect recovery level would be this previous support Right because it's hard to determine the upper line to the top now when you join multiple tickers together All the big movers right you guys know Microsoft, you know Apple You know, they have the Googles You know Tesla Facebook Amazon these six are about the core of the S&P 500 Wait So when you look at how these guys move according to the rest of the market or together You look for this perfect recovery to find the top that you're looking for so below. So let's move to real charts now this is the Apple chart on the five minute what I want to show you is a Down trend that we just showed you it's coming in a downtrend you see it's coming down however, it bounce its head on this line this line creating a level where we have This guy hitting this guy hitting this guy hit right? Let's put a line on this here. Just so you guys are really clear on this one see this Where we're all pretty much touching Together this was bought at the bottom See how I'm drawing the line. I can be a little higher than that, but this is pretty close now If we were to draw Right, this is what happened on the next day fear of an event we opened up lower Free market had just kept on tanking Where would you see the perfect recovery? Level right you would see the perfect recovery level to this line that we just drew Now I'll show you Moving sideways and this is the perfect recovery level. It looks like magic, but it's not You what you do what you did is this you have a Level and it starts to move up. Where will it go to first target? You know I had been playing it. I would have aimed for that But it kept on going Where do you go to where we looked at the it was a downtrend? support support All hits that this is where it's going to hit let's move for another This time we're looking at Facebook um, sorry mark that Cat-to-cat and facebook is facebook you call it meta, but you know, um, we're coming down Same as apple count down on a support Here it becomes resistance resistance y'all see this line, right? And I'll take you to today Where we have this big drop right Where it will be Before I show you the result where will be the perfect recovery This should be meeting this level right? You guys want to have a target? That's what you need to To get this is the perfect recovery. Where would I have taken this first? Would have been this line, right? Like we just showed you on on on apple But this is the perfect recovery. We're not looking at um Making some profit. We're looking at the perfect line just to make sure that when it reaches that it ain't going to cross it and this is where See the same yellow line here. I'll move it to Sorry, I just moved it, but You know, I'll just put it back to where it was right support resistance Where does it hit? We reached precisely to that smooth again turn that Remember folks that all the examples I'm showing now are all from the same day just to show you the correlation between the relationship between all of them and so when you have a ticker reaching the perfect Recovery level all of them should probably reach that line together So that's when you get your ding ding signal that you should be taking profit Um, this is amd that we played earlier this week. Uh, it was Moving to the upside. We were really bullish on it and it reached a top here Let's draw a line together, right? We are drawing a line where We're catching pretty much all the tops here. You guys agree. We could go a little higher than that Maybe around here Where we're catching a top Right, this is maybe a little of overtaking Uh, then it's the real top Top again not crossing it All this not now is probably telling you that if we reject that eventually it's going to become bearish See this cross on this 250 EMA crossing 50 going below so this meant for a bearish turn and that was yesterday um It started, you know, I told you about fear what was happening the not knowing what was happening Basically, we open on the way down and before I show you a little More of where we're going You all agree that this is the low Pre-market low you see this wick Show you a little later But stay with me here This is the pre-market low Where would your perfect recovery be? This this is what I showed you before What news would make us go from this level? Which is about 102 ish 103 to this level, which is 1844 in a day What news would allow us to even cross it further rather than stopping on a previous resistance That we had on before The bad news happened. I don't know if you follow me on this, but this is all psychology here What news could hit us? That could make us go through Just like butter here for a full day We just didn't get through and now all of a sudden today We would go from down here to up there with no effort Yes, that's possible, but to get through it. Hmm. It's mostly unlikely now this The the idea of this video so you guys can identify where that perfect recovery could happen And see this yellow line here on the perfect recovery And let's move to right now what we had during the day And boom now This makes it the perfect recovery We hit the line right on the dot here At the end of the day making it what I call The perfect recovery as I said, would you take profit? When it reaches that line, I would certainly Do so On the following day we can probably continue talking about day trading here You took your your um your plate at the bottom Not quite sure where you're going to Go to well if you monitor the other tickers like we just did If you notice they pretty much all hit That perfect recovery at the same time, which was the end of the day If you took your profit there It was probably the the best you could have had obviously this looks very bullish as it Continues the upside remember Targets Plan ahead planning the exit is probably what will save you all the time So I hope you guys learned a little bit about how to figure out and how to pinpoint where could the perfect Recovery be on that when you're on a very bush bullish run like we were Oh one last thing Let's look at spy what spy did Just to see if there is any relationship with what with everything i'm telling you The idea this is spy the idea is to take a step back a little bit and look at what the chart Looked like a few days ago, and this is monday. There was a big gap down Here it is here, uh from from the the weekend Well, not from monday, but obviously this is closing monday, but uh from tuesday morning There's a big gap down here It was trying and trying and trying and not crossing eventually we became bullish But uh, let's just let's just draw a line here and see what it does Uh, what I mean by this is you know, I'm taking the line Very close to that So basically what I mean is this, um Follow me here It did want to cross but it didn't it was all pre-market And then as soon as the market opened it became support see how it becomes support Big wick we see on that support um This is Noise I like to call it and then back down on support So this line we have talked about earlier this week. That's pretty important. Let's move to today Um what happened and see how it does It became bullish and Then This is the morning that we had this low. Let's Take this 410 low I moved the line sorry, um Trying to do my best here to See this is the line that we picked around 428 5 right And this is the perfect recovery to support that we just talked about From that 410 To this resistance so All the other tickers that behaved in the Perfect recovery manner now this one Behaved in the matter where it reached a very defined Support line that it had support and resistance line. So all of this linked together I mean if you're only looking at one ticker at once and you're hoping for it to go up or down I mean there is a relation with the rest of the market and that correlation going from one ticker to the other the movers the strong ones the the ones that are That have more relative relative strength You guys can all monitor these guys together in order to be able to find the perfect exit Which was in this particular day All together at once Reaching the perfect recovery. So I hope you guys learned something. See you soon