in this video see real trades being made using tape reading with three proprietary traders hi i'm mike bella fury co-founder of smb capital and we're a proprietary trading firm located in midtown manhattan and i'm also the author of the trading classic one good trade and the playbook in this video two junior traders and me show real trades in tick by tick detail in the electric vehicle space using tape reading let's get to work on sharing these important trading lessons so you can grow your trading account this is a trade that ty and i made this morning in neo the reason it was kind of in play and gapping up was jp morgan gave it a pretty aggressive price target upgrade of 40. and prior to this trade on my top middle chart here you can see the hourly we had a really strong weak consolidation in this 21 to 22 range so it's a really good place to um we knew there's a lot of buying if this was really gonna hold higher and then i also want to note this is the one minute chart in the bottom left and this is the pre-market range we're kind of looking at this 2370 really got accumulated in the pre-market and then we saw trying to hold this 24 area off the open and i would just add on to that mat just like we were watching the entire ev sector so with tesla uh we had it on our screen as well um to see that similar sector to see if we were seeing strength agreed yeah the fact that tesla was also gapping up today and holding and i had it up here to watch was also a helpful check in our favor the tape will start with this opening drive through 24 which quickly fails and pulls back under twenty four dollars the trade's going to start when we're watching that pullback under twenty four dollars and we see some real accumulation in the twenty three eighties area where we kind of get along for a dip and rip setup so we'll start the tape here from when we broke out to that high that's a new all-time high so thinking if this is strong and it broke out through 24 it's really going to hold that 24 level you can see we come back under some large bids so what do you think about that so matt so matt and ty so when it doesn't hold that 24 level you said i think it should hold a 24 level and it doesn't really hold the 24 level it gets below there what are you thinking when it's below 24. personally i'm thinking if it's going to still be a long or reclaimed 24 the move under 24 needs to be a shallower pullback with the tape potentially slowing so we can really see some accumulation into prior support areas which we also see so the long idea isn't gone when it gets under 24 but we really need to see a change of character under 24 with accumulation to get back over that level i agree with that and just to add on to that we were really looking for to see like a change in the tape to see if we were slowing down and holding at key uh areas so i'll play it forward and this is kind of an area i started getting interested in watching see these bids at 23.
80 really holding the tapes really slowing here i mean in like the first 30 seconds you have 20 cents and now we're in like a five cent range so we test under the 80s and quickly come back so now i'm thinking this 80 cents area might be a good area to get long i know 23. 70 is pretty major inflection from watching pre-market trading so i'm going to set us so my stops under this level at 23. 70 if i can just jump in it does look like there's some buying there at 80 cents when it came into that e-sense it slowed up a little bit they weren't hitting the bids it wasn't dropping out as quickly and then it got below there got below the 80 cents and then re-bid 80 cents pretty quickly which is a good sign so watching it re-bid here and thinking okay if it pulls back and holds over 80 again probably looking to get long which again right there just right there wouldn't get below 80 cents just right there yep and that was the thing that really got me long is we couldn't get under it i got along at four cents above it and i'm gonna set a stop at 23.
69 yeah i think that's right i think when it wouldn't get below that 80 cents that was that's a signal right there and tai had a very similar entry i think it might have almost been the exact same price as we were talking in discord and what's your stop right there matt uh like 23 68 69 um so under that 2370 level if we were to really get under there and hold um so really like 15 20 cents risk yeah i mean i think the stops are 69 cents or 64 cents yeah i put in a hard stop soon at 69 cents which never gets hit right here if you want to learn three real world setups that our traders use including the simple setup that we teach all of our new traders and the setup that turned one of our traders into a seven figure big money earner check out the free webinar that we're currently running just go ahead and click the link that should be appearing right now at the top right hand corner of your screen that's going to open up this free registration page in the new window so don't worry you're not going to lose this video you're going to learn more in a couple of hours from this trading workshop than from years of online education so i have my script running for my stop up here 2369 and i just keep that in for the trade and then i'm just thinking okay i've got my stop in i have to worry about stopping out now i just want to see how the trade plays out and think about potential price targets if we really do hold these 80s and get that dip and rip pattern which we see a lot on strong opening drives below 80 cents now so that's not optimal not optimal yeah but comfortable with my stop and know they can still rebid this 80 cents which is why uh a good stop level is really important to be able to keep you in a bigger trade yeah i think that's a stop 69 cents and uh stop the tape so that trade right there to me is something i characterize as well it's not really doing what i thought it was gonna do i thought right when we mentioned it right when you entered you did a great job of entering totally like your entry that was that's a spot on entry to me that's along right there and i like your your stop's terrific too but i thought it was going to go up a little bit quicker a little bit earlier and it didn't and so i will sit there a lot of times and say to myself i have a trade decision do i want to just take off half do i want to get flat because it didn't do what i wanted to do right away or am i just going to let my stop handle the trade and in that case i would have let my stop handle the trade because the stock had touched and ticked a new high and it has ability to really run so i would in that scenario i don't love it and i prefer it it went already but it's worth it to just not get in there and get out of here long and just let the stop take care of the the trade you just set your stop at 69 cents it's going to take me out at 69 cents or not i'm going to try and capture this this a decent move to the upside and go from there so watching how the 80 cents rebids if it does i see those bids at 23. 70 so you said just kind of letting my stop do the work because what i was looking for didn't happen right away but we're picking up some speed over the 80 cents level i really like that accumulation i added a little bit there at 90 cents kind of expecting the breakout over 24. just an extra yeah i think you got a bid 86 cents there matt i think that's a 86 83 81 bids i was afraid i was gonna miss them when i saw such a strong up move in the 90s i think so i'm thinking this is really strong if this is really that dip and rip set up it should hold 24 and really continue to upside and probably make a new all-time high or at least test that level at that 24-26 so i took my first sale there 24 18 just in case we don't make that new high and i had that momentum ad it's kind of just taking off that momentum lot for was risking like five cents on it made like 40 cents but now i'm holding that initial core for the breakout to new all-time highs and i sell a little more another fourth as we make that all-time high again and now really trying to let the last half of my position work for me i want to mention something tai and i were noticing in real time was the volume wasn't as convincing as we thought it really should be after accumulating so much and breaking to a new all-time high so that's another reason i was a little more defensive and taking profits into the new all-time highs so you can see this volume candle on a breakout to an all-time high was pretty shallow and we're getting a deep pullback from there so still thinking with a long bias and letting my stop work for me but definitely not as much follow through with as much volume as we were expecting so that was definitely one thing that was maybe not a check in our favor to keep us open-minded to a potential move back under 24 no i definitely agree with you matt and just adding on i think our uh our entries from like the 23 80 80 mid 80s that really helped us to give us the opportunity to really kind of try to catch a bigger move than just a scalp on this play exactly buying the 24 breakout would have been a really tough trade and hard to stay in after such a pullback from all-time highs so i think that that noticing that entry is really so important for a trade like this where you want to capture the bigger move so now i'm going to skip ahead a bit you can see we tested under that 24 but at this point i still have the same stop on the second half of my shares i don't think we're really wrong until we can get under that 23.
70 again since we really saw a lot of accumulation yeah but you do want to be thinking about it holding higher than that you know in the best setups if people are really if people really need the stock they're not going to let it go back to 23. 80 right that's true definitely not that it can't go up but you you do want to be thinking about what's the most likely scenario for this to be strong and maybe go find 25. yeah you know you want to see them buying that above above that 24.
you don't want to go back to the same area definitely and ty were talking in real time about moving our stop up especially to this 23 like 90 where vwop is and this wick low so definitely kind of moving up that trailing stop no just to go along with that too i think um once we broke 24 we immediately re-bid above that and that gave us a really good uh place to risk off of now we're really talking here we're like okay like this is stepping up we really think some volume should come in if it's gonna make a new all-time high again you can see here i update my stop to i don't remember exact price to 92 cents so like right below v wap and that lit wick low as we're saying should really be holding higher if this is gonna have continuation and then this is the really make or break point we get this nice wedging action talking to the guys in discord and i'm like all right i'm moving my stop up but we should be patient with this anthony pointed out like that's a really nice wedge action going on just give it some time and i definitely agreed with that keeping me still in all my shares on on this breakout or the second half looking for new all-time highs scaling out some like 46 cents 53 64.
