all Traders know about chart patterns but very few know how to find the ones with a real verifiable trading Edge in this video eight figure a year prop Trader and special adviser at s SMB Capital Lance breitstein shares his Secrets defining and trading incredibly profitable chart patterns I'm Mike Bella Fury and we're one of the top proprietary trading firms located in New York City since 2005 and proud to develop numer seven and even eight figure per year Traders watch take notes and learn from Lance so you can grow your trading account what is up Traders
so today I want to do a video on a couple setups and so often you hear me talk about the importance of comparing different setups versus each other and making these analogies so many good traders that I know really have this just memorized database in their head of all these really good charts and that's not really magic they're getting this database from just studying studying studying studying and so one pattern that I had pointed out at the time when it was when it was occurring is what happened in this ticker djt which is the truth
social kind of trump uh stock and I'll get into the details of this but this stock reminded me of the setup we ended up then probably about a month later or a couple months later seeing an nbx and I challenged traders to compare and contrast these setups to see were both of them worth taking or either of them worth taking which was better and why I got a lot of really great answers on Twitter and so now I'm going to share with you my thoughts and uh I don't think there's necessarily any right answer right
there's just what is the right answer for you and I'm going to share uh what I think is the right answer for me so first things first with this djt T chart on the left so the context of what happened is of course this is the kind of Truth social Trump tracking stock it is one of those spacks and so this huge gap up of back in March towards late March that was on this ticker change it used to be dwac and what we got here on this day it was some massive massive volume capitulation
and keep in mind this ticker's pretty run up like we were we were starting all the way um back at 15 bucks and so over a couple months the stock really went up about 5x and this huge volume day we we opened strong but then we ended up failing really really hard we then start to roll over and I really love using prior bar highs as a stop and what happens is we actually hold prior bar highs on this daily chart for quite some time and so technically for me given this volume capitulation here this
is technically backside for me where we've broken prior bar lows we're holding prior bar highs and this stock really starts to melt and then what happens on this big down day um djt issues a filing essentially saying that the company is losing a ton of money uh they may not be able to cover their liabilities in the future essentially a kind of wake up Mr Market um you know this company is not making money we need to cover our asses because uh the operational side is not good here and the stock absolutely melted that day
what's so interesting to me though is this is a big down move right we essentially went from 60 to 45 we were barely able to bounce the next couple days we definitely held in the bottom half of that move after that fresh news Catalyst and so that $45 that aligns with kind of that moving average we roll over and we break it on this day and then we proceeded to melt holding prior bar highs the whole way down for a long while until about 27 bucks so for me at the time I had actually done
a review video somewhere on this and um I thought this was a very interesting setup to back test and study and so then I felt like it was worth pointing out that this enax ended up setting up in a in a pretty similar way and so now let's analyze this nvax and some of the pros and cons of of on it on its own so for those that have been trading since 2020 uh everybody knows novax they were trying to develop a a covid vaccine despite like how inflated their stock price was this ended up
not being one of the companies that was able to to bring a vaccine to Market and this stock then just subsequently just totally imploded over the coming years and so what happened um in in miday is essentially this huge gap up and this huge volume here was that they signed a licensing deal with copi so now all of a sudden after this company really hasn't had a CO product for many many years now it's oh man like maybe this is back in play this was this stock was used to be way way way way higher
and that kind of kicks off this rally so then in early June we start to break out and then we get another series of news I think this this green day is like the 5ifth and essentially like um envac had been doing well with the FDA process and they were anticipating vaccine release uh come September and I believe there is some new strain that um that the co makers covid vaccine makers believe that their vaccines will be able to cover so all of a sudden it was an extra wave of umph the other thing that
I want to point out that I do think is relevant is envx was exploding in the 2020 2021 era in the time of like Mega mem stock Mania and what's really interesting is this also coincides with gme and AMC really exploding like kind of this whole move where things were starting to get a little frothy and so we then gapped up really big the next day following that that green bar and man that's a pretty big move for us to go to 15 and then I think pre-market we were at like 26 and we just
faded off and and then melted and so then we end up kind of finding a little bit of of support here we have our really really tight inside bars and then we break that level and so this was interesting it also aligned pretty much with that uh moving average roughly so what do I think the pros and cons are of of each so one thing like if I had to pick one I I actually think the djt is is much better over all why do I think that um I think the reason why I'm I'm
So Into the djt is really two big things one this ticker had Mega volume capitulation in late March on that big gap up day so all that volume turnover all of these people that bought these couple days are way out of the money whereas in envx a lot of the volume and the turnover really happened uh in miday but at a much lower price so a lot of the holders like I I tend to think about the psychology of of the holders involved and so you get a huge turnover of shares um but it's down
at 8 n 10 bucks and yeah we do a fair amount of volume but nothing compared to what we did as far as the turnover in miday whereas with this djt we do so much volume turnover up in the 60s and 70s and all of that volume is way out of the money the other big thing for djt is I consider this backside right this had a volume capitulation we failed really hard we've broken prior bar lows and so this to me is is backside which I guess novax is is as well but then the
the the real killer is this has fresh news on on this day with with the filing and we're just not able to bounce from that news whatsoever so then when we break below that $45 the low of the day uh I really think that such a psychological oh crap we we're like What is the floor on this if this company's losing money right it would it was it's coming from 15 bucks so what is the floor going to be essentially now you have this negative news Catalyst that is crushing the stock and you're breaking below
these lows whereas enx didn't really have any negative news Catalyst if if anything a lot of this volume is still in the money we don't have any extra tension and ump like okay yes maybe we went a little too far too fast in the high high to mid-20s um but it doesn't have the same ump as fresh news oh my God this company is losing money what's going to be worth when we can't bounce and break that that being said I do kind of think that both of these patterns are worth going for and the
way I would do this is simply as a swing trade where I'd be I'd be shorting the break using prior bar prior daily bar uh highs and kind of just trailing that and so it's interesting like I do think djt was better it did end up working out better indeed and not you know that part is hindsight like I try you know I'm I'm a lot of the stuff I'm looking at in real time but then by the time I produce these videos it's it ends up being um a lot of time later and so
this nmax I wouldn't have thought the reward was so so great but that being said this stock was also coming from four and the initial news put it at around 9 10 bucks so the meat on this bone is on on this bone is pretty hefty as well so this did work a little bit you probably made a point or two but I I could have seen this actually fail quite a bit more as well that being said one of the other I guess cons of of both charts and particularly LLY for this nmax is
we have a fair amount of consolidation in here in this like $14 $15 area which I consider price acceptance so this is kind of the equilibrium price for enax and even for djt you really do have an equilibrium price over the last couple months around 4045 so those are um another slight Con on this but big picture we're still up a ton so you you can get some people that are that are scared and questioning what is the value of this thing so um my personal opinion djt was better than nbx for the reason I
mentioned probably both were worth going for um even if I cover up the the the outcome I I still would would have that view and I think this nbx probably even though it didn't perform so well I I really think it probably um uh you know could have could have done much better given given all everything it's it's a pretty interesting pattern and I think this is the type of thing where like you can start to scan and filter for uh if you don't know how to filter for different daily chart patterns there's tons of
programs out there one that I use is stock fetcher. comom I have no affiliation with them St fcer.com very robust program to to pretty much filter out different daily charts and you can start to filter for these patterns and study the nuances as far as the news the volume capitulation uh the different types of bounces and and try to make this play your own and see whether there's efficacy by back testing or forward testing it so thank you so much for watching any questions give me a holler on YouTube or Twitter thank you so much
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