The greatest morning star reversal of all time

All right, here we go. Time for the greatest morning star reversal I've ever seen. I'm not really being facetious. It's a very good morning star. What we're going to do is we're going to back trade it. We're going to start from the very beginning. Then after this particular back trade, what we're going to do is we are going to do a swing trade back trade. Okay. On a different, on a smaller time frame. We'll talk about that in just a second. All right, so here's Apple. This is the daily chart. So without looking at anything else, ladies and gentlemen, based on this particular trend, up, down or sideways, three says we're going up. Well, everyone else agree. Okay, so if we, if the trend right now looking at this chart is up, how are we going to look to play this trade? Bullish. It just makes more sense and make enough sense, it should make you some dollars. Hey, that's a cool quote, Newsom. All right, so we're going to play this bull now. We're gonna pop into a five minute chart and we're gonna back trade that day. So here's the day hasn't happened yet. Alright, so here's what we got. 27th. Okay, gonna come over here. Now, I do full disclosure. I already know what's, what's gonna happen on this chart. So I'm not gonna belabor the point. I just want to show you what the perfect morning star looks like. And then that'll be the ending of this recording. And we're gonna go do some swing trading with a different time frame. And then after that we're gonna do some pretty basic longer term trades on the daily chart and then we'll be done. Insane how quick that flew by. Here's the point. We already know we're gonna trade it bullish. We're gonna draw in a support level and a resistance level so that lines the pre market high. This line is a pre market support and this line is a pre market support. Would you guys all agree with those lines so far? Is that, is that adequate? Alright, cool. Now William, do you know why we are going bullish on this trade already? Do you already know why we're looking at it? Bullish. That's it. Short term is up says Woodshed Williams. That is correct. That that's, that's it. All right, so here we go. And boom. Market is open. Matthew says are we worried about the previous day's high? Nope. Previous day's high is we can, we can put a line but there's the previous day's high right here. All right, so previous days high is281.45. Okay, so from here, what should we do on this trade? What could we do on this trade? Ryan says, wait for a pullback, wait for a retrace rate, for a retracement, Buy the salsa, wait for the S curve. All of those statements are accurate. So if we're doing that and we're thinking, where should we buy the retest? Where should we buy the pullback? Do we already have the answer to that question, my friends? The answer is yeah, Old resistance. We're gonna buy right here. We're gonna buy on this pullback. Bloop. That's what we're looking at. Getting in. Where? Could you put a stop right here? That's it. Is that a pretty basic trade setup? Yep, pretty basic. Is it gonna work? I don't know. Maybe, maybe not. What if it doesn't? Then you're gonna lose money. What if it does? And you're gonna make money. It's a really simple game. This whole thing is really simple. It's just difficult. All right, so again, I'm not going to belabor the point. I already know what's going to happen. I'm gonna walk everyone through it. This particular candle right here, nothing special about this candle in any way, shape, or form. Do you guys agree? Nothing. That's just your normal, average bearish candle. Nothing crazy about it. Nothing interesting, nothing wild. If you see that candle, is it okay for you to still have this bullish limit sitting out down here? Matthew says, is that an evening star reversal? That is. Yep. Definitely an evening star reversal. What's just your average candle? I mean, if it trades down into support, should we still leave that open? The answer is yes, we should still leave that open. Why should we leave that open? Because it's okay to buy low, even if it's a bear candle. Trading into your support. Because what if it trades into your support and bounces? Right. You don't want to not be in because you got afraid of a bear candle. Practice this. Go in. Actually practice getting in at these prices. Practice it pulling back to your area and to your level and buying the dip down there. Practice makes permanent. Robert says, I'd rather do a 27535 for safety. Yeah, definitely, you could do that. Just make the even the numbers the same. That's fine. Chris says, isn't this a pseudo evening star reversal? It is 100% an Evening Star reversal pattern. Yep. So this is an evening star reversal pattern. If you blend this candle and these two candles together. But is that, is that terrifying? I mean, again, an evening star reversal doesn't mean the stock has to go to zero. It just means that this could happen. You get an evening star reversal, it pulls back a little bit and then it could potentially bounce. I don't know if that's going to happen, but if the evening star reversal shows up, it just simply tells me, hey, man, this might pull back into your support. Keegan says, I mean, we did set it up to come down to meet us, so we're gonna need some selling for that to happen. And that is correct. Aka Buy Low, aka Buy the Salsa, aka Mr. Squiggles is always in charge. All right, here we go. Pretty strong bullish candle. It's like, oh man, we're not gonna get triggered in. Boo. Nothing happening here. Nothing happening here. Hey, Macarena. Now here's the cool part. Do we get triggered in? The answer is yes. Is it terrifying to get triggered in right there? And be honest. Yeah, you could say that's terrifying for some of you. Some of you might go, oh, but it's a head and shoulders pattern, Newsom. It's gonna go to zero. Could. What if it doesn't? Have you ever seen a head and shoulders pattern not go down? I have. I've seen a few. Now you got feel. How did we know to put in our entry here? Are you guys all comfortable with that fact? It should be a very simple thing. Should be very, very easy. Pre market high. That's. Simple as that. Okay, now what I want us to do is I'm gonna hide the fact that we're in this trade. I'm gonna hide it for a fact and then go, alright, what's the next candle look like? Next candle, Boom. Indecision candle. Now you might say, newsom, that didn't gap at all. And I would say, mmm, you sure? Close of this bearish candle. 275, 55. Open of this candle. 277, 53. We have a 2 cent intraday gap on apple. When you're looking for an evening or morning star reversal pattern, it's phenomenal if that candle gaps. So really good. So this is a gapping intraday candle. We gapped down from the close of this into the open of this. It's pretty beautiful. Alright, so up until this point, you know, nothing special about this trade. Nothing special. Doesn't look that wonderful, doesn't look that interesting. It's just, it's just there. But when you see these candles, you have to assume what could happen next. Williams says what is considered big intraday gaps in cents. Oh, man. It just depends on the stock. Honestly, I would argue anything more than a dime is huge on any stock ever. Intraday. Chris says short below that candle. Oh, you're brave. Ladies and gentlemen, Chris wants to short below that candle. Not saying it couldn't work, not saying it won't. I would wait though, because we're right at pre market lows. We're in a bullish trend. If I was going to short below that candle would have to be a very specific gap. A lot of people would have to be trapped. If we had a big, big bearish candle that closed like that, maybe I could be talked into it. But again, the trend is still bullish. So I would just rather wait for this and then look to go long. It's just easier to stick with the bias of the trend generally. Unless it was a really extremely bullish gap and there was tons of people selling and locking in profit. It was a very fatable type of trade. But in general, in general, if it's a small, tiny, relatively insignificant gap on the daily chart, there's nothing really special about it. I only go with the direction of the trend. The only time I go against the direction of the trend is if it's a really mind bogglingly fatable gap. So just go with the tide. Easier. Now this candle, nothing special, nothing exciting. It's an indecision high wave candle at a good support area. Again, if I turn this on, would you guys agree that we're definitely filled on this trade now? Okay, Definitely filled. Next candle. Hey, so the next candle is a bullish candle. Not only is it a bullish candle, but it closes above the high of this bearish indecision candle. And did it gap the third candle? And the answer is, mmm, it did by one penny. The close of this candle is 27745. The open of this candle. 27744. So you have a gap on all three candles. That's a requirement for a morning star reversal or evening star reversal to be perfect. You have to gap on all three candles. That's one of the requirements. Not the only, that's one of them. Next requirement is it needs to be occurring at a good support or resistance level. Is this occurring at a good support or resistance level? Matthew says what makes the inverted hammer considered indecision. Matthew, do you see the upper and lower shadows? That's what creates that indecision. Stock opens. Here goes all the way up. We're Buying. Oh, we're going all the way down. Oh, and we close here. No idea. People have no clue what's gonna happen. Big upper shadow, big lower shadow. Pure indecision. No one really knows. That's it. The length of the candle. Now, what's another thing? So one requirement for a star reversal pattern to be perfect, all three candles have to gap. Second requirement needs to be occurring at a good support resistance level. Third requirement, the last candle of the pattern should be predominantly bullish or bearish if it's a bullet, you know, evening or morning star reversal. And the high of the third candle, if it's a morning star, needs to be very close to, if not the exact same as the high of the first candle. So the high of this candle is almost the exact same as high of the first one. Zach says, is it the third candle gapping the wrong way, or does that not matter? Does not matter. We say gapping the wrong way. I mean, it gaps one penny down, and you can obviously see that it traded higher, Right? So, no, it doesn't really matter as long as it gaps. As long as it gaps. That's a valid question. Okay, what's also interesting about this third bullish candle. Who can point it out to me? All right, I'm starting to get fatigued. So this is where I gotta start pushing through it. Okay. Shaved bottom candle. Bingo. Amy says, here's the wall. Yeah. Here comes the wall. The wall is approaching. Here it comes. Time to break that wall. So this candle is a shaved bottom candle, which means as soon as it opens, bang. The buyers came in immediately. Buyers came in immediately. As soon as it opened. That's another bullish sign. Now, I know we are already in the trade bullish based on this setup. Right? I get it. But if we were not in bullish, how would we take the trade? Would it be a limit after we break out, or would it be a breakout trade? Do we have to wait for a retest? Or can we get in on a breakout? And the answer is unquestionably breakout. Now, again, I know we're already in the trade, but just, for example, if we were not, this is exactly how the trade would look, right? Like that. Perfect. Now, this setup is already a 10 out of 10 perfect morning star in every way. Does that mean it's gonna work? Come on, now. Don't be silly. William says we always play morning stars as breakouts. If it's a good enough one. Yeah. Yep. If it's good enough. If it's a high enough one, I will g Dog says, would more volume make it 11? Nope, can't have an 11. Can only go to 10. 1 out of 10. This is the perfect one. So it can't go higher than that. Plus the first two candles are already bearish. So the first two count. This is bearish. I mean, this is a textbook, guys, put it in your notes. This is. This is perfect. Amy says stop limit. Yes, this will be a stop limit breakout order. You are getting into the trade as soon as it goes higher. No need for a limit. You are getting in. All right, this is great. Now what happens when this candle comes in? So far it's just a normal trade. What happens when this candle comes in? Does it change anything? Keegan says it changes my risk. It looks even more bullish now. So you have an inside candle with a lower shadow and a little bit of an upper shadow. This looks so beautiful. I mean, you have to take this trade. You have to. And here's the thing that I really want to drive home in this whole program. Notice that there is tons of resistance right here. Chris says, but you're gonna keep your stop where it is, right? That is correct. Keep my stop right below the morning star pattern. So the takeaway is, yes, there's all kinds of resistance here. But my friends, can you remind me what happens in a bullish trend? Not what should happen. What will happen. Resistance will be broken. Higher highs will happen in a bullish trend. That's what trends do. They go with the trend. Now, is there a chance that it doesn't yet? And the answer is always there is always. So again, my friends, the reason I keep asking these elementary, pretty basic and generally dumb questions is because this is what I'm asking myself in my mind every time I take a trade. So that it reminds me that I'm not impervious or impenetrable or impeccable. It reminds me that I am human and I'm trading in a human element market and anything can happen at any time. And to always have my risk calculated and understood and make sure that I remind myself, anything can happen. Don't worry about the outcome, worry about the process. Don't worry about the money, worry about the process. Don't worry about the money, worry about the process. Troy says, what is the specific volume you're looking for on the three minute. No specific volume required. This is just, you know, nothing, Nothing specific. So so far, all this is good. This looks great. I, I would 100% to this trade up choices. What is large or average? It depends, Troy, on the stock that you're trading, my friend. You know, like, if you're trading Apple or Lulu or whatever, it just depends. Each stock has its own different volume and average, average volume. So I'm not really. And if there's enough shares that I don't have to worry about it, I'm okay. And by the way, the fact that I trade companies like this, that's why my target demographic and most of my customers and clients and traders and friends and family that I trade worth and work with every day are 45 and older. Because we're trading actual companies that actually make money, that have actual market caps. William says, I have a hard time noticing the Morning Star. What is your best Morningstar trading video? You are in it right now. This is it, bro. You're here. That's why this video is called the Greatest Morning Star of All Time. So print this out, take a screenshot and practice them. You will have access to this recording. You can watch this recording as many times as you want. You can also get a charting software called TrendSpider. And TrendSpider will find Morningstar reversals for you, if you want. So if you want to find morning stars, right, you can. You guys aren't ready for the new Black Crows yet. Hold on. You're not supposed to know that exists yet. Morning Star, there you go. So use Transpire to help you if you would like to, William. That's one way you can do it. You can print it out. You can practice. Draw them on the screen. Draw them with your hand. I mean, honestly, man, I'm serious. Like, physically draw them out on a piece of paper. If you draw 10 morning stars on paper with your actual hand and a pen and actual paper, you will get it. After the 10th one, you'll go, alright, I got it. Boys and girls, are we now in this trade? Are we triggered in? Yep, we're in. Secondly, does this candle scare you, terrify you, or worry you? And the answer is it might, but it shouldn't. Because here's the thing. For me, if I'm in a trade, bullish. I actually like seeing bearish candles, Mr. Rimbolt. Because if I have a bearish candle, that tells me if the stock takes out that candle, how should I feel about this setup? I should feel great. I should feel like it's gonna work. I should feel like the process is correct. So if it takes out that bear candle, I should feel like this will continue to work out nicely. So therefore. Oh, my gosh, man, that candle right there is like being able to drink beer Every night for the rest of your life and never gaining weight. As much beer as you want, all the beer and no weight is gained. Kristin, that would be awesome. That's what this candle says to me right there. Pam is in for that arrangement. I'm in also. Sign me up. Oh, man. All the beer. Okay, so that's a perfect candle, folks. Am I moving my stop loss yet? Answer that one for me. Am I moving my stop loss yet? No. Why am I not moving it yet? Because it hasn't been enough candles. Edward says if we didn't get in yet, would you get in on that candle, correct? Yep. If for some reason you didn't get on the breakout, you would have had to buy on a pullback of that candle. If you are not in yet, then you would have to get in above the high of that candle. So I am not moving my stop yet. Plus I've only been the trade six whole minutes. Whoo. Alright. There's my new high. That's my new high of the day. So ladies and gentlemen, let's talk through this and they'll be done. Can we or should we take a partial up here? The answer is yes. Why? Because it's a new high. That's what you do. You sell at new highs. Like that's what, that's what you do. This is, this is the S curve, my friends. This is it. Remember, if you recall, we initially were getting in down here. So you're very profitable on this trade regardless of where you got into the trade. It's a new high. That is the S curve. That's it. So peel off a partial and then keep waiting. And the amount that you're gonna exit up there will fully depend on how well you're doing for the day, for the month. All of those things are accurate, right? All those things. Could you exit everything right here if it was the difference between you winning or losing on the day? The answer is of course. What if it was your only trade of the day and you wanted to take eight hours and put it in your pocket and leave? Could you do that? Sure. Do I do that often? Yeah, like every day almost. I will lock in gains so quick because my friends, you have to consider this and I want this to be a big aha moment for you. At some point, I want everyone here to be trading a large R. Let's say you took a thousand dollar risk on this trade, which is really not that much money. Okay? You'd have the ability on, on just this morning star Trade to make $900 in less than 30 minutes? Yes, please. Okay, all. Yeah, sign me up for that. How do I press buttons and make $900 in 30 minutes and then go do whatever I want the rest of the day? And that's not even, my friends. That's not even if you bought down here with a stop down here, you're up $1,900. Or imagine this for just a moment. Just a moment. Let us sink in to a little bit about greatness of money. Just imagine for a moment that you did this with a $10,000 risk unit. $10,000 risk unit. Just imagine for a moment you could have made $9,000 in 30 minutes minimum. Let that sink in for a moment. Because it's real. It's actually real. That math will always work regardless of how big your R is or how small your R is. Albert says, would you consider to be a large R above 500? Yes. Yep. Now, again, I know that might stretch your mind just a little bit, and it might scare you a little bit, and that's okay. That whole concept of money and fear and actually making a lot of money and pushing yourself out of your comfort zone. Many of you are terrified of even trading with the $10,000 risk unit, even if you had it. Matthew says how much percent of your R should be your account balance? 1%. 1%. Okay, so I want us to get to this point. There are people here in this chat pane right now who have a $10,000 risk unit. Okay? I coach with them. I see their names. I won't call them out, but it's okay. We have traders in the chat pane right now who took this class who are multi millionaires. Liquid. Liquid. Multi millionaires. All right. And that's okay. That's beautiful. It's amazing. It all takes a bit of time. If you ever want a little assistance getting out of that comfort zone, breaking through that barrier, I do have a program. It's called the Money Grows on Trees. If you want me to just totally blow your mind, I'll put it on this website very soon. I'll put it right here in the next few minutes. But trees aremoney.com if you're ever like, ah, dude, I would love to break through and kind of learn this. The new dates are going to be October 24th through the 28th. So I'm just letting you all know, this is a thing where I will push you to your greatness. I will do it together. Okay? It's not about me. It's not about everyone else. It's about us doing it as a team, mentally growing. So just know that that is a possibility. That is something that you can strive for. It's all possible, it's all doable.