WEBVTT 00:03.680 --> 00:08.960 And this one, we're going to take a look at flat market strategy, so what's the difference between 00:08.960 --> 00:10.010 choppy and flat? 00:10.550 --> 00:16.370 Well, choppy is back and forth where you see peaks and valleys, but when you get a flat market. 00:18.300 --> 00:26.430 There are no peaks and valleys, not really, and that is what we're looking at in a couple of different 00:26.430 --> 00:27.630 areas in this chart. 00:28.650 --> 00:34.650 Flat markets are the worst, quite frankly, they don't give you much to work with. 00:35.600 --> 00:40.400 You can see like this is a 15 minute chart and yes, it's zoomed down, but you can see we didn't do 00:40.400 --> 00:41.790 anything most of that day. 00:43.700 --> 00:45.490 We didn't do anything about it to this day. 00:46.410 --> 00:48.390 And quite frankly. 00:49.740 --> 00:52.020 There isn't much to do with the flat market. 00:53.130 --> 00:59.130 Each one of these 15 minute candles tell you that the market just has no desire to go anywhere. 01:00.130 --> 01:03.880 So the best strategy for dealing with a flat market is. 01:05.450 --> 01:08.150 Letting it tell you where it wants to go. 01:09.360 --> 01:14.530 Ultimately, a flat market typically is nothing more than consolidation. 01:14.760 --> 01:17.670 It is a market that has no. 01:20.110 --> 01:23.350 Real catalysts that do anything, and you'll see that a lot. 01:24.820 --> 01:29.240 When there's no earnings or anything anywhere near this is a flat market here. 01:29.260 --> 01:32.380 Now this I would consider a choppy market, we're in a range. 01:33.040 --> 01:36.670 While this technically is a range, we're talking about a range of 25 cents. 01:37.000 --> 01:38.840 We're not talking about a whole lot of trading. 01:38.860 --> 01:43.660 Now you can zoom in and go back and forth and treat it as a choppy market on the one minute chart, 01:43.660 --> 01:44.260 if you wish. 01:45.100 --> 01:51.130 But in a world where there's over 5000 stocks to most of you available to trade of stocks and ETFs and 01:51.130 --> 01:53.170 everything else, there's no point doing that. 01:53.170 --> 01:55.010 You don't need to punish yourself like that. 01:55.030 --> 01:55.990 So keep that in mind. 01:58.660 --> 02:00.340 But when you do get these flat. 02:04.280 --> 02:08.640 In these stocks that just really haven't gone anywhere. 02:09.500 --> 02:11.600 The next thing you're looking for. 02:13.330 --> 02:15.010 It's some type of volume spike. 02:17.050 --> 02:18.820 So, for example, here we did nothing. 02:19.720 --> 02:25.260 For 24 hours, basically, well, for a trading day, we've rallied a little bit and just went sideways, 02:25.880 --> 02:31.550 you can see we got this huge, massive spike, higher two dollar spike on this 15 minute candle. 02:32.230 --> 02:33.100 So here's the thing. 02:34.090 --> 02:38.770 Do you have any doubts as to where this market's trying to go? 02:39.380 --> 02:44.080 You can put your stop loss on the other side of that flattened area because you know that there are 02:44.080 --> 02:49.420 a ton of orders right here that would have to be taken out for you to be hurt. 02:50.600 --> 02:55.060 You may have to be patient, you may have to deal with a pull back in this case, you really didn't, 02:55.850 --> 03:02.240 but a pullback is not that uncommon and just recognize it's part of the market structure you typically 03:02.240 --> 03:02.600 see. 03:04.210 --> 03:08.690 So you do have the option of waiting for a pullback to buy, but typically when you get an explosive 03:08.690 --> 03:12.730 scandal like this, after a market has done nothing, the pullbacks are very brief. 03:14.290 --> 03:21.820 And very shallow, and you can see that with your stop here at, say, twenty nine thirty, and even 03:21.820 --> 03:26.770 you born here at thirty two, you're looking at about two and a half dollars. 03:27.520 --> 03:33.130 You made five before the market flattened or gotten a choppy range. 03:33.730 --> 03:37.660 So that was a two to one risk to reward ratio kind of built into this trade. 03:39.400 --> 03:44.320 You'll see this time and time again, you know, here is a massive sell off now, I'm the first to admit 03:44.320 --> 03:47.320 that this would be difficult to start shorting down here after that move. 03:47.710 --> 03:49.690 But you can see that certainly it worked out. 03:54.820 --> 03:56.060 Same here in John Deere. 03:56.770 --> 04:02.020 You could call this choppy if you want, I call it flat because there aren't you know, this is more 04:02.020 --> 04:05.560 choppy because it's a little wider and there is a little bit of R to this. 04:05.570 --> 04:10.320 There is no hey, this is a flat market because it's X amount of percentage move. 04:10.990 --> 04:12.250 It's more a visual thing. 04:12.880 --> 04:17.860 It's when you look at a market, you go, you know, there just isn't enough there back and forth for 04:17.860 --> 04:19.150 me to be bothered with. 04:19.480 --> 04:24.940 And then you get a volume spike like that, a massive candlestick that tells you right there that the 04:24.940 --> 04:26.050 market's ready to go. 04:26.680 --> 04:34.090 And that's really the only way to handle these markets that I found that's even remotely reliable beyond 04:34.090 --> 04:34.540 that. 04:36.620 --> 04:42.530 What you really want to see, and in this case, India, it was obvious we had been bullish for quite 04:42.530 --> 04:43.240 some time. 04:44.360 --> 04:49.100 So it shows you that there's more conviction coming, we continuation in these setups.