 Well come back with us folks Learning from bad plays will hurt, but it should not be neglected Last week. Well, I'm just gonna Review a bad play that we took last week and I'll show you exactly what I was looking at and why it became a bad play Basically, this is a video and looking at the one-hour chart. You see that this guy has been going down from You know 307 to 208 on the hourly chart As of Monday it was finding a bottom And I found on Wednesday. It took a high of almost 240. It looked like it was Climbing and I'll show you exactly the resistance that I saw and look at this yellow line I'll show you what I was looking at. So basically you see that there was a bottom here. We found The low of 208 I was just telling you about and then it hit resistance It hit resistance here and it went above it and then it was hovering really trying see how it's trying here to get Above it and then it poked through right at the beginning of the day and I was see this 50 of the red line here the moving average. It's the 50 EMA Of course, we are on the one-hour chart here. So basically When at market open here, we looked like we were at least going to climb to this resistance line which was The 200 EMA for this for this baby So basically I was under the impression we could kind of get above it and Move across to the upside This was at the beginning of the day with volume pre-market But not this was more people tiling in for a short and Let me get rid of this so you guys can see more clearly It popped and then it started dropping That Throughout the day. So basically I was thinking maybe we find this bottom, right? I'll zoom in a second, but maybe I just want to keep the one-hour chart for purpose and I'll show you why Maybe we come down to this bottom which is support and We will climb above that However, that's not what happened. We broke that support broke the weight for the downside and Then we came down to this line However, if you are slowly going down and not really moving to the upside when you take calls this close to expiration basically, you're not looking at something that is Going to be extremely profitable The reason why I'm I'm saying this was a bad play We go back here As soon as we lost support lost support there I mean you had here was the first time you could say okay, I'm out and then second time to say well I'm really out And expect a bounce from this is very tricky. I don't know if you've watched some other videos here But in many of them I say don't get caught in the middle What I mean in the middle I'll show you exactly what it is. You see here is a bottom Don't never mind this this bottom wick here, but if you look at this bottom It creates a Kind of very close to a triple bottom You have one here one there in one there and add this yellow line that we took up top Basically, this is what I call the channel in between in which you do not want to get caught in The middle why because it can go up what you want as a breakout It can go down and what you want is a bounce But if you're in the middle, basically you're hovering from very negative to almost Break even if you're playing the equity, but if you're playing calls or the options, basically It's not moving in your direction. So the K is strong as you get closer to expiration. So like I said Everything that is in the middle unless you you get the bottom and you sell at the top If you buy anything in the middle, it gets really tricky so I Believe the alerted in the alert was in this vicinity and I'll zoom in in a second I'll do that right away. So I don't lose you all Let's go to the five minute and I'll show you what I meant this is the five minute on the Thursday morning see the open was Going wild It's moving to the upside it's moving like this right at the open right at the open it's then this was the The resistance we just talked and we talked about with the previous support and now resistance and no it rejected it However, we were kind of patient and the idea was to see this line here Right we're all happy to get in at that level We were just about to move The bounce from here and this is this was my expectation This is where we kind of entered and then it started losing it The idea was to get out at the bottom there make sure you know it looked like a double bottom at one point But it lost it That's the out trigger. We have to get out there Unfortunately, that's no happened and we decided to double double up on the position thinking that we would this this This is a bottom from a little further back here. I can zoom out and show you I give a second here This Let's do this together without too much fuss Here it is this bottom is This bottom right you all see that it's the support and then It continued it continued to go down Why because we're stuck in the middle and you know, it's even the the bottom is even further than that so We don't want that. We don't want to get stuck in the middle and the point was here when we thought it would bounce What should have been done is exit right away exit as soon as we crossed it because it's not bouncing our way and the anticipation that we had anticipation and a bounce up because that would have or could have happened it didn't happen when we see that happening You know, it's much better off to lose a few percent here than to lose a lot more to the downside So thanks to remember is zoom out I'll zoom out for you and I'll show you exactly what the the idea is zoom out and make sure that It clearly indicates that it will be changing direction. Now the 50 EMA was the The resistance because you know, it's trying and it's not getting through But Anticipation is one thing that you can do but one thing that you cannot do is if your anticipation move Doesn't work. You have to cut it right away. So that's that's one thing The other thing is if there is a channel and this was the risky channel If there's a channel make sure you get out of that channel Right away make sure to buy as you are breaking out rather than guessing or anticipating And because the risk of staying in the channel below is too important. I'm saying in this particular case, we should have waited for a move to the upside above the channel Because there was a channel below sometimes what you have is a dip And then there's no channel this there's just a dip and you can see that there's the anticipation for more upside You could have seen this This is 200 EMA the 200 EMA had been like in this vicinity kind of thing Well, you are more on the bullish side and It's easier to think that there is a reversal in this case The risk was to stay in the channel and did which is unfortunate. However, what we're learning from this is recap here If there is a channel make sure we get Either buy from the bottom of the channel Or wait for breakout first thing if you anticipate the move because eventually it will bounce somewhere if you anticipate the move Like we did here if it breaks under be extremely quick to cut it So, you know learning from mistakes is also a very good thing and I hope you guys I learned from other people's mistake and um, see you soon folks