Good morning, good afternoon, good evening to all you beautiful chickens out there, it's your boy trey from tree street, back again for another video later brother's. My sandwich is my financial advice. Please take a say, the grain of salt, let's get into the video today, my friends, you uh, you better buckle in get yourself, uh a monster, a bit of popcorn because we're about to dive into an options and technical analysis master class. This is something that's been requested for quite some time and to be frank with you, you know i've been on youtube for a while and i have failed.

I have failed massively because i don't have one of these people always said: trey trey. You should just you just make your own and i'd always just link rain or tail or this, and that because it's already been done, you know the voice crack. That was good, but it's time to do it myself and walk through all the things that i personally use and i've got kind of layered out step by step by step. This is going to be chaptered out.

So if there are things that you'd like to skip just look at uh, the little bar that shows how much time you've got left on the video down there or whatever and uh you'll be able to go to whatever you want to. But this is gon na. Be the premise behind what we are going to discuss here today, so we're gon na start off with chart basics, because i have an understanding of uh. You know different different people have different levels of understanding of how charts work, how options work et cetera, and i go on kind of the levels of uh importance.

I believe and what i think to be the most in depth, so we're gon na start off with chart basics so time frames, rsi, macd volume, support resistance, horizontal and both upside down side. I think these are all important things, so so that, if you don't have any understanding of charts and how they work, you know you can start here and uh work. Your way into the more complex sort of things, then we're going to dive into technical patterns and supply and demand zones. These are personally my favorite thing to use.

This is really what i use the majority of the time when i trade is simply just technical patterns. Supply and demand zones and then also coming back to the charting basics right time frames. Rsi macd volume support resistance. I try to layer these in right, so volume being probably my favorite.

This is probably the most important thing to me. Is volume alongside technical patterns and supply and demand zones, but we're going to walk you through flat tops both a rejection and a breakout, we're going to go through a wedge, rising and falling we're going through flags, bullish and bearish head and shoulders inverse head and shoulders Cup and handle and an inverse cupping handle that's what i c and h means i h, and s means h and s c, h, head and shoulders cup and handle inverse head and shoulders inverse cup and handle we're then going to dive into supply and demand zones. This is probably the most complex, maybe the the the most uh stretchy brain. You really got to kind of think outside the box.

When you look at this, you also have to buy into the theory that algorithms and institutions are majority of what move the stock market around, but fear not as as trey the dingus who who likes monstaru hot dogs and diet. I'll tell you what i'm gon na show you proof that these do in fact work by looking at charts, so we're gon na walk you through that number three on the list, because i trade options. That's what i like to do. Uh we're gon na.

Have you know, sort of a understanding, a master class of what you need to know with options, and this is going to be prefaced by saying this is specifically for long calls and long puts, which means that uh you buy up front and then you sell on The back end right so you're giving up money, and then you get paid money. That's the idea behind uh! These long calls long puts uh, which means that you're long right, you're long on a put you're long on a call in the same way that you're long on stock. When you buy stock right, we're gon na go over bid and ask what they specifically mean and then we're gon na go over the spreads, because i don't think enough. People talk about this.

It's important to understand, spreads, uh and how liquid something is, because that is going to give you an idea of uh whether or not it's a really solid opportunity for you to make money. You want to keep as much money as you can we're gon na walk. You through that open interest, we're gon na talk about this, we're also gon na give you a basic understanding of the greeks. What i find to be probably the most important aspect of the greeks uh and then we're gon na talk about in the money at the money out the money and risk reward associated after that we're going to dive into exercising options.

Personally uh, it's not worth it! 99 times out of 100, but i am going to explain to you the one time that it is because it's up to you individually to find out what's trading strategy works best for you, then i'm going gon na talk about risk reward right, runners being specifically the Most important piece of this and then strategy scalps, swings and exercising. These are sort of the three things that i find to be the most important uh with calls, and you know, calls and puts i should say and then from there. I could probably add one more thing and that's probably going to be uh leaps, because this is this is even beyond just a swing right. I do want to talk a little bit about how leaps work from there we're gon na dive in number four, which is a basic trading strategy.

Now this is a way it's not the weight. This is not guaranteed to make you money. This does not mean that this is the the the only thing you need to know about how how trading works, because, ultimately, you have to figure that out for yourself, you take the things that i'm showing you you see if it makes sense to you and if It doesn't you know you just got ta adjust. You got ta find what works personally for you uh day trading, so this would be thought of basically is scalping with options right, you're getting in and out the same day.

We're gon na talk about entry points, stop losses, runners and an exit plan and then we're gon na talk about swing trading entry, stop loss, runners exit; this is all gon na matter. You know entirely on how much time commitment you have and what your trading strategy personally is going to be, and that is also going to impact and affect uh the tools that you utilize from there we've got one last thing, which is going to be the additional Tools, uh do not skip one through four. If you don't have a complete understanding of one through four, i don't think you should be looking at the additional tools, because that's exactly what these are right. There are additional tools to help you make money.

If you don't understand how to get a good entry, a good stop loss, how to take profit, that's the hardest part is taking profit believe it or not, most people they they they can get a trade green. They go yes, baby. Look at me screenshot, my one thousand percent gain. I am.

I am good, though, i'm so good trust me when i say - and it says it's hard to take profits right. It really is so if you don't have an understanding of day trading versus swing trading, you don't understand uh how options work you don't understand the chart patterns you're not going to be able to use the additional tools which are meant to stack on top of an Already basic understanding of how to read, charts, how options work and how to take profits and how to enter a position. So we're going to talk through 9 21 crossovers we're going to talk about 1348 crossovers and we're going to talk about the williams alligator, because these are all things that i personally have uh in my discord - and i am gon na add one thing in here: uh Just because i i feel it is good to do so uh originally, in my discord i had, i do still have uh links that explain all these different things, but essentially what this video is going to be is a homage uh that that allows me to walk Through and explain it in the way that makes sense to me, but if you want uh to look at this stuff, you know i first got my decent understanding of 928 from conservative collectors. He's got a nine plus 21 ema trading strategy.

You can see that right here right, you can also look then at the 1348, which is explained by review. Dork he'll. Give you an explanation of how this all works right. So you can check this out.

You can go through his entire video and he's going to explain to you essentially how 1348 works uh and you walk away. You know pretty decent and then you can also go over to uh the williams alligator. So i got my decent understanding of williams alligator here. Uh from trading beacon, best strategy for williams, alligator indicator uh explained so i just want to be able to pay homage uh.

You know in my previous video when i was talking about having these these crossover setups uh algorithm coded into my discord. I didn't say that i merely just linked them and i want to be able to give credit. So there's that for you and we're going to start from the top and give you uh the beginning of the master class. And if you want to skip any of this stuff - as i mentioned before, just go to the chapter section and you're gon na walk away, uh pretty decent, so step, one chart basics right now, if you this is.

This is a situation where, let's just say that you don't you're completely new to the stock market, you're watching stocks go up and down, and all you think to yourself is green - is good and you're buying the stock you're buying a call, and you think, oh, oh, It's going up right well from here, you got to have a basic understanding of charts, so what i want to start off with is time frames time frames is completely going to determine uh the way that you are going to approach any sort of specific trade, whether It be an entry whether it be an exit. You want to focus on time, frames uh and follow it up with a couple different things. So you have lots of different time frames on a chart. You've got a one minute chart.

You can even go down to a one second, if you'd really like to uh, which just means that each candle represents one minute of price action, a a green versus red candle. If you don't have an understanding of that, that's okay, we'll walk you through it. Here. Really, quick, a green candle means that the stock price went up and a red candle means that the stock price went down.

I'm gon na highlight these accordingly, so this is green. Green is good uh, it means the stocks are going up. Red means stocks went down right so with that basic understanding, what you need to know is open and close. So here on this beast, a green candle opens from the bottom, meaning that the candle began at the bottom and it closes at the top right.

This would be the close red candles. Are the exact opposite. It opens at the top, meaning that at the beginning of that one minute, five minute: 15 minute 30 minute hour, long candle, uh it opened at the top and it closed at the bottom. You can also have what are called wicks now.

The wick of a candle you can think of is basically like the string, noodle uh that comes out. You know. Sometimes you got a dingleberry that hangs down on your your butt cheeks, whatever uh. This is price action that uh that was tested but didn't hold.

So let's just say for a green candle that the price opened here, but right when it opened it it pushed down, and then it came back up all the way to here. This is uh price action that did not end up actually holding right. So if you opened at this, the you know the bottom of this green candle it pushes down and then, let's just say it comes back up and then uh from here it pushes up to the top of the candle it pushes up to. Let's just say this level, then it rejects and it comes back down to the top.

This is where it ended. Actually, you know actually ended up. Closing these wicks basically are just telling you look. This is price action that was tested, it didn't hold uh.

The opening close is as such, and the same thing could be applied with the red candle right uh. If you opened here, it means that it tried to push higher it rejected. It came down tried to push lower it. Rejected came back up.

This is how it closed. That's what a wick will tell you is rejection in either direction of a candle right. So with that basic understanding, you can apply that that candle method to every single time frame, a one minute represents one minute of candles. Five minute represents five minutes worth.

Uh 30 minutes represents 30 minutes worth you go to one hour you go to daily. You can go to weekly, you can go to monthly, you can go to a two hour. You can go to a four hour, there's lots of different time frames and the biggest takeaway for each time frame is a shorter time frame, and this is self-explanatory. But you know uh you'd, be surprised.

Shorter time frame equals a shorter entry exit right. So let's just say that you're watching a one-minute candle, that's going to bear a lot less significance than a one-hour candle. If you have a one-minute breakout, a one-minute chart, breakout uh, there's a much higher probability of you getting juked out uh, especially if, let's just say that you're taking a swing position on a one minute, breakout, there's pretty good odds. You're gon na get juked out on that because charts just by by design uh typically will test out levels over and over.

They spend probably seventy percent of the time channel trading trying to decide should we go up. Should we go down uh in order to uh keep movement, so a shorter time frame, you're, probably going to be seeing uh the rejections and the false breakouts more often than not so one minute is gon na bear far less significance than a one hour. One hour breakout is gon na hold far less significance than a one day breakout a one day. Breakout is gon na hold less significance than a one month.

Breakout you get my point here. Larger time frame is more useful for a longer trade. The shorter time frame is more useful for a shorter trade for scalps right and we're going to dive into that as we sort of go on so now that you understand uh sort of the basics behind time frame and how candles uh basically work. I want to dive into the rsi macd and volume and to me out of all three of those i find volume to be the most important.

Ultimately, it's up to you, you have to decide uh what you believe is the most important tool to be able to utilize, but i use volume uh by far the most out of all three of these things, so we're gon na start off here with the rsi. What is the rsi? Well, if you, if you want to basically think of it, it's the relative strength index. This gives you an idea of uh, essentially momentum between buyers and sellers. Typically, if it's close to 70, it means there's a lot of buying momentum.

If it's close to 30, it means there's a lot of selling momentum and if you're, above or under either of those values, it can tell you essentially whether something is overbought or oversold whether you can expect some form of a retracement. You can think of things very simply right. Stocks move in waves, stocks moving patterns and the rsi is basically tracking those waves and patterns. Any time that you have a euphoric uh rally, a rally, basically referencing lots of buying pressure.

You typically are going to have a retracement, which basically means you give some of that back anytime. You have extreme fear you're going to get some form of a bounce. This is just how stocks work right. Nothing goes down forever.

Nothing goes up forever. Uh, you always are going to see things wave, eb and flow, and that is what the rsi is essentially telling you now. The most useful part of the rsi to me is when you see a divergence uh of the rsi alongside price action, which we are going to dive into as we as we continue on uh. For example, you see that we we have this downside uh level of resistance, which i'm going to explain here in a little bit, but at the same time the rsi is starting to get some form of a bounce right here right.

You see this. This breakout of the rsi, if i could drop a line right here, i would show you, but you can see this higher lower high, lower high lower high and a breakout. Well that breakout didn't happen here yet right. You see this breakout from this lower high setup on the rsi and that you're gon na break out from you can expect the stock price to follow through eventually because there's a divergence there, meaning that something is crossing paths with another thing it doesn't quite add up.

So the rsi is, i would argue, probably most useful for two things right. You were looking for uh that sort of divergence or you're using it to essentially just buy and or sell overbought oversold territory oversold over bot. That's probably the most useful thing about the rsi imo. In my opinion, ultimately, you have to decide.

You know what you'd like to use it for uh. I think the divergence is probably the most useful, and this is probably you know. I'd say that rsi and macd are tied in terms of importance to me. Personally, you have to decide what is the most useful tool for you, but i find that to be about there right next thing is going to be the macd.

Now the macd is another useful tool to be able to show you sort of the ebbs and flows of buying and selling pressure. Typically, when you see the red you can see that this coincides with this is the macd by the way macd down here. Uh, the red coincides with moves to the downside, so you can see this move to the downside. You can see that uh it peaks right about here at the bottom of uh, this price action and it starts to curl back up.

Well wait a second, though right. If it's curling back up, why is the price still going down? The macd is probably the most useful for being able to predict a bullish rally right, a flow back into bullish price action, essentially meaning that buyers are stepping back in to push the price back up. So here's another example of a divergence right. The macd starting to curl back up curling curling curling, the price, has a small flush back down.

You can see the mac d curled right here and it's about to transition back into the green. The green essentially representing another bullish, move back up. Well, what do you notice right? You can probably guess that there is some form of a divergence. The price is going back down.

You would anticipate this to be some form of a dip buying opportunity. If you wanted to buy a call, because it doesn't coincide with what the macd is doing, the macd is saying: hey look. I could expect that at some point, uh in the near future, you're gon na get a bullish rally, uh based on the four-hour time frame, which means that maybe the next four to eight hours, uh you're gon na see a decent move which then actually ends up Coinciding right, so off of that rsi is pretty low. You can see yeah.

This is oversold it's at 18 uh, which is a good dip buying opportunity, and then it got a bounce right. That's a divergence! So, there's a couple different ways that i think you could probably use the macd it's gon na be uh, basically almost the same as rsi uh, but i would, i would add one thing and take away one thing right, so divergence i would be looking for divergence. Essentially saying the price action does not match up with what this indicator. This tool is telling me.

So if the macd is saying that price is going to go back up soon, but the price is still going down, you know that's a divergence, that's something that you can pay attention to. The second thing that i would use it for is buying and selling peaks. So if you wanted to, let's just say, buy a put because they haven't talked about, puts yet uh you're, looking at ark you're looking at ark and what this has rocking right. Now you see this peak right here this four hour peak on the macd, and then it starts to curl down right.

You see this candle right here start to cool down off that macd. Well, what could you anticipate? Is that you're going to see some form of a follow through back into that red territory? You also want to take into consideration the long-term trend of whatever ticker you're. Looking at we're gon na talk about that here in a little bit uh when we dive into more technical patterns right but uh, that is a tool that you can use in order to just simply ride waves. Ride patterns ride the ebbs and flows of bullish, bearish uh flow.

That's really what that's probably useful for the most important thing to me, though, is volume by far volume is very useful, and the reasoning behind that is, it can tell you when you're gon na get a true breakout or a false breakout. Now volume uh is nice because, let's just use an example right here right, let's look at uh bank of america, now bank of america, i'm gon na switch over to one hour time frame and what you're going to notice here. Very simply, is you have this downside level of resistance, i'm going to explain this in a little bit uh, but it's down downside level. The resistance got broken out of well this candle that broke out of that downside level of resistance.

If you were to look at sort of the the pre-market volume, what are you going to notice right? Well, let's just look at this on the five minute you can see that there was a huge uptick in volume right at the open as it continued to follow through uh. That's a good sign that you're getting a breakout when you see a huge uptick in volume on moves. That indicates a lot of strength that can be utilized in either direction. Here's another example right you're, looking at till ray, and you see this big move up right candles are starting to move super super heavy and the volume just out of nowhere jumps.

That volume indicates strength in the move. So i think that volume is the most useful uh for two specific things right: finding strength in the move, whether it's up or down right strength and move, and it's also good for being able to find a true breakout versus a false breakout. Probably the best example of this is going to be amc and gamestop. Amc and gamestop last week had a breakout of a very, very long-term daily pattern, uh where they were in a downtrend for a very long time, and i'm going to show you this on the daily candles.

This is a time frame, uh the daily right. What do you see here is the volume up ticks to nearly two times as high as the previous over two times as high as the previous day. That indicates to you that this is in fact a true breakout from this line right here. This downside level resistance touch, points comes all the way down breaks out of that.

The volume follows through the next day. Volume was almost twice as high as the previous day as it broke out above the next line. That indicates a true breakout. Volume is super super key for not getting juked out and the beautiful thing about time zones.

My friends is, you can use them uh these patterns, these tools across all time frames whether you're scalping, whether you're trying to swing trade, whether you just want an understanding of where a chart is for a long term investment. This is applicable across the one minute. The five minute, the 30, the one hour, the daily, the weekly the four hour, whatever you want to use uh, it's all useful, uh information. So with that being said, support resistance is the next thing, and i've already touched on this before, but support and resistance are essentially tough cookies to crack.

You can think of this as like. If you were to get a fortune cooking you're smashing it on the table and it takes like five six smashes until that thing breaks, uh, probably a little stale. You probably don't want to eat that. I don't know about that.

You know you might want to go to a better chinese chinese restaurant, but nonetheless that can be sort of uh thought of as a support and resistance lines. So here's an example right uh, i'm gon na show you guys here really quick upside levels of support and resistance and downside levels of support and resistance, and we're gon na use gamestop for this right. So, let's just go over here to gamestop and show you what i'm talking about this can be thought of as a horizontal level of uh support. Support is what holds things up, so you can think of that as oh, it's tough to break this to the downside.

For sellers every time, it's tap this it kind of chops around a little bit shot, meaning that it's not really picking a direction up or down it's trying to determine whether it's going to break underneath this level or if it's going to bounce above that level. Every time that you see that chop - and it doesn't know what to do, you can think of that as a support level and it bounces back up in the same way that this is a resistance level rejected. Here it's tough to break and if it does break it typically, you can think of that as a breakout. You want to watch the volume and the other things that we just previously discussed, such as macd and rsi, and all that stuff uh.

That's going to be significant information, for example, you can see it broke above this uh resistance line, resistance being hard to break for buyers, and it bounced above bit, uh bounced above that and then acted as support bounce back up, and you can see that it's being Respected as both whether it's above or below above this line, it's acting as support below that line, it's acting as resistance and that's obviously a very key level. 148.65 cents for gamestop, for whatever reason or another uh is, is very critical. Probably the most useful, though this is by far to me - this is what i use, probably more than anything, is up and down side levels of support and resistance, and for that i'm going to specifically use paypal right now check this out. Paypal just recently had a one hour upside level of support, downside level of resistance, uh forming out some sort of a flag.

Now? What do you notice here? Well, this support. I always look for at least three different touch. Points touch. Point touch.

Point touch. Point touch point to signify that it is a respected level of support in the same way, i'd look for at least three touch points for a level of resistance touch. Point touch, point, touch, point touch point and it rejected off of that level of resistance. Now, what happens when you break above or below these levels? Is they then act as either support or resistance the opposite of what they were before so for paypal? Right? Had a false breakout of this level of uh resistance came back down, broke beneath support, then it came back up to test now acting as resistance, and you would expect that if it doesn't break above this you're gon na see a pretty hard move down.

Uh going into monday that's something that you could expect these upside levels of support and resistance can actually be key ways of identifying whether something is gon na have a a a pattern back up or a pattern back down. This is actually useful for bear flags, bull flags, rising wedges, falling wedges, which we're gon na dive into here uh next, so you have a basic understanding of resistance support, give yourself an atta boy, a pat on the back, a golf clap whatever right. This is uh. That's, that's! That's the starters.

That's the starters of what i think is the most important for being able to trade. Next is going to be technical patterns and supply and demand zones, and the easiest way that i think i can do this, for you is by simply drawing it out and showing you examples right. So, let's start off here with a flat top a flat top is exactly what it sounds like it's a top of uh uh any given chart it's completely flat. It looks like this uh and when you break above a level like that or you reject off a level like that, it typically moves pretty dang, quick, so to draw it out.

First, we're going to show you what this looks like a flat top. This is a chart right here, and this is price. Let's just say that price is skirting around skirting around skirting around it's starting to set higher lows it's coming up and it's obviously rejecting off of a horizontal level of resistance. You can think of that horizontal level of resistance as the flat top and when it either a rejects or b breaks out.

Uh big moves come typically with a rejection. You see a false breakout and then it sells off super hard. That's the the rejection off of a flat top the breakout of a flat top you'd, be looking for something like this, where it breaks out, comes back down to test and then it bounces, and then you get a big big big move off of that. That flat top level - let's show you an example, let's try and find something here, really quick right.

So an example of this to me, i think gamestop is a pretty decent one. Uh check this out. This is an obvious flat top level for game stop. So you see a bunch of different touch.

Points here. Touch point touch. Point touch. Point touch point remember, i said three levels is the most important levels.

Uh touch points you want at least three of those to determine that something is, in fact a key level and when it breaks out above this, what do you notice? Massive move? Came all the way up to the next flat top breakout level, which was right here at about 149 uh ish dollars. Now, if it was to reject off that which it did back here right, you see that's rejection off of a flat top on the one hour time frame that rejection sold off pretty hard came from 130 all the way down to 106. right. That is a example of a rejection, and this would be an example of a breakout of a flat top level which is going to bring me into the next one, which is a wedge a rising and a falling wedge.

Now, just because you have a rising wedge or falling wedge doesn't mean it's gon na always follow that exact pattern, but it does mean that probability, wise, you're, very likely to see it uh reflect one or two ways: a rising wedge. Believe it or not, is uh. Sounds backwards but today is opposite day, rising, wedge uh wedge, that's kind of weird looking is bearish. Typically, it means you're gon na see a retracement back down a falling wedge is actually bullish.

It means you can expect some form of a bullish reversal off of that wedge and that is utilizing something that we just went over before, which is upside or downside, levels of support or resistance. So, let's start off here with a rising wedge now the example i'm about to show you uh is actually one of the 10 times that it didn't work, but i'm going to show you what usually would happen. This is an example of a rising wedge, and how do you know it's a rising wedge right? You can tell by the way it is no it's because it looks like a wedge, but you have upside levels of both support and resistance. It's following a channel.

That's closing up to a peak like so and what typically happens off of rising wedges is it breaks down like so you would have expected. Uh amc in this example right to break down coming off of this rising wedge. This is the one out of 10 times. You know probability wise that it actually didn't do that uh, but this is what you would expect to happen.

This is typically a bearish reversal indicator. Anyways you can identify. It is upside level of support. Touch.

Point touch. Point touch. Point touch point upside level. Resistance touch, point touch, point touch point essentially think of the support and resistance.

As connecting dots. If you can find a dot to connect, you can find a touch point to connect. You want to connect them. Touch, touch, touch, touch, touch, touch, touch, touch, touch, touch right, you're, connected dots; you see them forms up a wedge.

You want to see the breakdown of that wedge. Typically, is the next to follow, but the easier way to even do this is to break out above either level you're, typically going to walk away pretty solid, so uh, that's a rising wedge. The next one is going to be the falling wedge now the falling wedge. This is much easier to show you cause.

I can show you this on a daily time frame uh, but the following wedge is the exact opposite. You see a stock, doing something like this. You see it's forming up a wedge that appears to be falling downwards. You typically see a breakout of that wedge right now, i'm going to show you a beautiful example of this uh right now, with amc now check this out.

Amc is a perfect example of a stock. That's been in a falling wedge for the previous nine months ever since june. 2Nd all of this is done, is bounced back and forth back and forth back and forth between this downside level of resistance, downside level of support when it broke out with the volume following through utilizing one of the tools that we previously discussed uh, it came with A really decent sized move - this is a picture-perfect example of uh how useful this is. This is actually a good lesson as well, because we did have a one hour falling wet a rising wedge within this daily falling wedge right, but this is useful to show you what we just talked about before right.

What is a more useful time frame in this scenario? Is it the one hour or is it the one day? It's always going to be the one day, because this is representing a longer time frame of overall price action. The greater time frame is always going to beat the smaller time frame, meaning that if on uh the last week, you've been trending bullish. But you have like a five minute rising wedge, which means that you expect price to retrace down. You have to also factor in that the last week of price action, the hourly candles are saying: you're not really inclined to see this go.

That way, just based on the things that are are presently happening right. The larger time frame is always going to win. So keep that in the back of your mind when you're looking at this stuff next we're gon na go into flags now a flag is very simple because it looks like exactly what it is. Typically, it means you have a long string of price action.

That's moving up. It finds some form of usually a flat top right flat top resistance and it bounces around bounces around bounces around bounces around, and it forms what appears to be a flag. Now, i'm going to paint this out for you uh super duper simple. This would be the pull of the flag.

This would be the flag itself upside level of support, and this can be either a flat top level of resistance or a downside level of resistance. There's a couple different ways that you can look at flags, but this would be a bullish, flag, opportunity and, typically, what you see is when it breaks out of that level of resistance, whether it's flat top horizontal or a downside. Big move comes the opposite of a bull flag. Since this is a bull flag, it means that it is bullish.

You would expect a bear flag, which would mean that, typically, it is bearish. It's the exact same thing, but it's upside down a lot of downside level of price action finds some sort of a flat top support and it bounces around like this bounce, around bounce, around bounce, around bounce, around uh, this representing the flag except upside down. This would be the pole. This would be the downside level resistance, either upside or flat top level of support, and you continue on give me one second pull up plug my light back in plug for some reason: there we go uh and you would expect off of a break of this level Of support, a pretty big move to the downside as such right that would be a bull flag and a bear flag.

Now, there's actually an example of this uh happening right now with this stock. I would consider this to be a pretty decent, looking uh bull flag. I'm gon na paint this out for you on amc here really really quickly. But what you see here is a long string of price action to the upside, followed by what appears to be a downside level of resistance upside level of support forming out what appears to look like a flag.

This is the pole. This is the bouncing back and forth a break above this level. You'd expect a big move up a break beneath the upside level of support. You'd expect a big move down right now.

This doesn't mean that you're going to guarantee yourself to see a breakout to the upside right, but you also have to take into consideration, as i mentioned before, this is an hourly timeframe in the last day, the daily time frame you just had a massive technical breakout. So you'd expect uh the greater time for him to bear more significance. So with that being said, a bear flag would be the exact opposite of that uh. It's a flag of price action that moves its way down uh and it bounces around forms out what appears to be a flag.

Typically, you see a breakdown to the downside, that's which brings us into it brings us into the next thing all right. Let's now discuss uh head and shoulders and inverse head and shoulders so a head and shoulders pattern is very simple: i'm going to paint this out in the most simple way possible. Essentially imagine you're at the store you see this guy uh he's got a face. That looks like a guy he's, got shoulders and he's walking right.

Well, essentially, what you're looking for is the guy that looks like head and shoulders and price action as such. This is the head. These are the shoulders here and here bam. Don't you like that example that was beautiful, don't get much better than that and this the most important pieces of this there's four identifications that i usually keep track of uh with the head and shoulders uh and inverse it's the same thing, but it's upside down right! Uh, head and shoulders what you're looking for is uh the follow through of four things: you're looking for a flat top, which is this right here, acting as support you're.

Looking for a shoulder rejection, a false breakout head a shoulder rejection as such this will form up some form of a channel right. You can see a couple different touch points on this level of resistance phobia come back down to the neckline of this entire pattern. This would be the neckline of the shoulder the shoulder and the head now. Usually, the neck is right above the shoulders right, but in this instance, it's right down by a penis so take that for what it is it just is what it is.

It doesn't have to make sense it's just how charts typically work and off of this head and shoulders. You typically expect to see a move to the downside. Inverse and shoulders is the exact opposite thing right. It means that you've got a neckline, that's upside down, inversed form up some form of a shoulder, some form of a head.

Some form of a shoulder comes up. Typically, a move to the upside good thing head, shoulder shoulder, neckline channel right. You see this uh this level of resistance right here at both the shoulders. This kind of looks like like a ball sack and a wiener, but nonetheless you can call whatever you want.

That's what the books call it, but you can call it. You can call it paul and weiner if you'd like uh, this is typically bearish head and shoulders is bearish, inverse head and shoulders bullish right now. This is something that the most important thing i can tell you is you're. Looking for these patterns, you're not trying to predict these patterns, so if you are trying to predict a pattern like this, you could get it wrong.

You want to wait for confirmation and we're going to get into that as we uh dive into the actual training strategy. But if you see these patterns, it allows you to take uh an opportunity to make some money to make a trade right. The next thing i'm going to discuss, finally, is the cup and handle and the inverse cup and handle cup and handle uh and an inverse cup and handle right now. What does this kind of look like, typically a cup and handle? What you're trying to see is a dip followed by a smaller dip, which is the handle right now check this out.

This would be sort of the cup. This would be the handle forms out some form of a neckline, and usually you get a pretty decent size. Break to the upside, so this right here is the cup. This right here is the handle and it forms out some form of a handle.

Typically, you can see some some form of a downside level of support, uh and resistance. This being the resistance, this being the support followed by a move to the upside uh bullish, this is typically a bullish indicator and what the most important piece of this this cup and handle setup is uh the smaller overall dip right. You have a big dip, followed by a little dip. Little tit, uh, followed by a breakout of some significant level of resistance.

Inverse, would be the exact opposite of this right. You see a huge move up, followed by a smaller move up forms up some form of a channel of support and resistance, followed by a break down right now that is a inverse cup and handle you can see uh the cup right here upside down. You can see the handle right here and then typically, a pretty big move to the downside, uh bearish. This is gon na, be a bearish indicator and uh.

That is the last of the technical patterns that i personally use. Now there are more of them if you'd like to dive into more detail, it's very easy. What i would just look up is technical patterns on youtube, you'll be able to find whatever you want, uh, which is going to bring us into the supply and demand zones. And these to me are the greatest easiest to understand stock market hack that i could possibly give you.

I use these all the time for trading. I think they're very useful and you can even use them. Alongside of all the previous technical patterns that i've just discussed. Uh, so let's dive into that uh right now, right a supply and a demand zone.

I call it a stock market hack, because what they do is allow you to predict future price action with previous price action. Essentially, what you're looking for are levels that algorithms don't like now. This will tell you essentially where, in the past, algorithms have either bought or sold stock. So, in order to understand this, you have to be able to understand the two things that these algos are looking for: moves, meaning the 20 30 of the time that stocks either go up or down and chop the other 70 of the time when stocks are just Doing this, that chop is information, you can use that information to determine or a supply or a demand zone is, and also what these mean.

So first, we have to understand what supply means. Supply means. Rejection, typically, you'd expect a move to the downside. You can think of it in terms of economics right uh, if you have too much supply uh.

That means that demand goes down if you have a lot of demand. Typically, that means the opposite. It means you'd, expect something to go up right. Supply will go down right, so supply is selling pressure.

Demand is buying pressure uh in the easiest way possible, so rejection down rejection up - and i'm gon na paint this out for you right now. We're gon na use the exact same chop as an example, because this is what you're looking for to identify a supply or a demand zone. Uh in this instance we're gon na use it as a supply zone, meaning a rejection and over here we're gon na use. This as uh the opposite, we're gon na use this as a demand zone.

Right now, what happens if you touch these levels? Well, first, let's just pretend that we back up this chart a little ways to about here. Right price is coming down coming down coming down, it touches this supply zone where there's a lot of chop and it rejects bam down. She goes comes up breaks. It comes down now it's acting as a demand zone and it usually has a big move back up.

So if you want to understand supply and demand zones in the best way possible, i'm gon na show you examples on a chart, uh think of it as levels that algos don't like. You will have a rejection on either side of it, either to the up or to the downside, if you're, underneath the price action, if you're, underneath the box, it's acting as a supply zone, which means you're gon na expect a rejection to move down if you're above It it's acting as a demand zone which you can expect a bounce and a move up right. Here's a couple examples. Let me show you this: i can pull up any ticker.

This is universal across any time frame, any ticker uh. To give you an example right, let's start off with, let's just say: uh we'll do we'll do snapchat check this out, because this is a very obvious uh supply zone right here. So what do you notice? You see some chop back and forth before a big move to the downside. These candles.

What you're trying to do is capture all the candles that are chopping around chopping around chopping around channel trading, not picking a direction either up or down before you got a decent size move down, and you might be asking yourself trey well what? If? What if this was based on news, the nice thing is even if it was based on news. It's the exact same thing right now. What i'm going to do is extend that box. I'm going to extend it all the way over here, i'm going to show you how useful this truly is, and let me tell you i haven't even looked at this chart until right now i literally just looked at the last tickers that i've looked at uh and I just picked one - and this is what i happen to pick so: the demand zone, origination or supply zone, depending on which way the price is acting.

Uh came from right here right. This is the origination of this supply and or demand zone, depending on where price action uh is operating. So with that being said, what do you notice anytime? This is the this is the the theory right anytime. It touches this box when it's above it it'll bounce.

When it's below it it'll reject well, what do you notice touches this box? Bounces up touches the box bounces up touches the box. Bounces up touches the box bounces up, but when it breaks the box right now, what touches the box bounces down breaks above touches? It bounces touches it. What do you think's coming next? What do you think's coming? I'm gon na actually have to get a position in snapchat on monday god damn this looks. This looks good.

That is a picture-perfect example of how supply and demand zone works. To me, it's probably the most useful pattern that you can use. It's the most useful uh ta technical analysis, because it's universal across all time frames all tickers and it's almost always respected, and why does it work right? Because it literally is telling you exactly where al goes: buy and sell? It's telling you where that's literally, giving you the secret sauce, it's telling you where algorithms like to buy and sell stock the specific price levels right very, very, very, very useful, so just to go over one more time, because this is one of the more complex uh Things to understand right, origination of demand zones or supply zones - it doesn't matter it's universal across both is the choppy price action before a big move, either up or down. So, in the exact same way, this right here this little bit of chop, would be a demand zone before this huge move up right and if we were to extend price action.

If it ever came down to this, i think it would bounce very, very, very quickly so uh, it's the chopping price action, the consolidation, the channel trading before a big move up or down, and you just stretch that box of price action and that has now become A demand zone if it's beneath price action or a supply zone, if it's above price action and you can expect a rejection in both directions. So uh, that's the supply and demand zone and we have just graduated level two of the options and technical analysis master class. Let's go: let's keep going next up right now. We know how to identify, supply and demand zone and mark a supply and demand zone.

Let's dive into options, i saved the options for number three, because i think if you're gon na plan options, you have to have a basic understanding of how charts work and how to chart out a chart right. So with that being said, uh the way that i personally trade options is specifically long right. So both calls and puts i play long, meaning that i don't really dabble in covered calls. I don't really dabble in cash secured puts, which is going short on a call or short on a put.

I'm not gon na explain those here today. If you'd like to understand those uh go, look them up. Just look up a uh cash secured, uh put or a covered call you're gon na get everything that you need to know so. Uh we're gon na dive into these specific things, bid and ask spread and what the bid and ask is open interest.

The greeks and the money at the money out the money - these are probably the first things that you need to understand on how calls and puts work so that you can uh walk away understanding. What you're doing so a call and put is a bet that the stock price will either go up or down. They are uh leveraged ways to buy uh stock, essentially right so a contract. The most important thing that you can understand is a contract one contract for both a call and a put represents 100 shares in either direction.

You were essentially saying i have the right, but not the obligation to either buy or sell 100 shares of whatever ticker is. For this example, we're going to use apple uh. I have the right not the obligation to buy 100 shares or sell 100 shares of apple at a designated strike price, which is going to be sp uh for a call. Let's just say that you want to buy a 10 call.

The 10 is the strike price. For this specific example, let's say that you want to buy a 10 put 10 p dollar sign. 10 p. The 10 is the strike price.

For this example right, the 10 is the strike price. So, with that understanding, one contract equals 100 shares uh. You then understand that there's some leverage behind this, that that options allow you to leverage a little money to be able to make more gains, and you can understand how that kind of works by utilizing the greeks and or an options, profit calculator. I think the options profit calculator is the much easier way if you don't want to dabble.

If you don't want to take the time, because, let's be honest here uh, i don't sit in my head and crunch like let's say the stock moved 30 cents up. I'm not like the delta was this and the theta was that and the the and the gamma was this. I don't really. I don't do that.

It doesn't really make sense uh, so the optimum profit calculator is going to help you sort of decide those things, as as things keep moving right, so calls and puts one contract equals 100 shares to buy or sell the right, not the obligation, let's dive into uh, The bid and the ask, because this is going to help you - determine exactly what you're buying right so to use this we're going to come over here to weeble, and i'm going to show you the options chain for snapchat, 0, 1 april 2022 would be the expiration Date, meaning that uh as time passes. This is the final day, zero one april 2022, that your contract will have value, whether it's intrinsic or extrinsic value. Unless you decide to exercise it right, uh we'll dive into what intrinsic and extrinsic value means. As as we go, this is the strike price right here, 17, all the way to 35.

If i was to buy this as a call, which is what i currently have selected, let's just say that i was to buy the 27 strike price call. This would be in the money i'll explain in a bit uh. I would pay for this. Ask right here.

When you buy stuff, you slap the ask: you slap it you're slapping those cheeks, you're, clapping, booty, cheeks you're, trying to say this is gon na go up right, so you buy that 27 for eight dollars and fifty cents per share. Now i know that can be kind of confusing, but with a contract you just want to move the decimal point two points over right, because this is eight dollars and fifty cents a share instead of 27 you're buying 100 shares for one contract, which means that that Contract costs you 850 now the ask is buying. So what would the bid be then selling the difference between the two 850 versus 830 that 20 dollars in between the market maker keeps when you sell your contract. So let's say that today, uh, you know saturday.

Obviously the market's closed, but let's say that i bought a snap call for 8.50 right and i don't even hold it one. Second, later, i'm selling it right if i bought it for 8.50 and now i decide to sell it well, the bid is 830, which means i'm selling it at 8 30 and i lost 20 right. That's if nothing happens, if theta doesn't decay the value of your contract, if time doesn't decay the value of your contract, if it doesn't move up, it doesn't move down, you lost 20 simply to the bid and ask spread now with that being said, the most important.