In this 3 Tools To Find Stock Breakouts Video, we discuss the RSI (Relative Strength Index), 200 EMA (Exponential Moving Average) and 15 VAMA (Volume Adjusted Moving Average) to help pinpoint potential breakouts on a stock chart.
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You know what five o'clock somewhere baby. I don't care it's 8. 45. In the morning it's the weekend, i'm gon na enjoy myself a little bit of cracking warm, the warm the body and the soul.
What is up? Everybody welcome to trace trade's real technical analysis on different stocks in the stock market, as well as potential buy holders sell opinions on these gaming stocks. I, like your premise by saying that i'm not a financial advisor nor expert so take what i say with a grain of salt. The reason i started this channel is because a couple years back, i was about thirty thousand dollars deep into medical debt, and i was very fortunate to have some close family friends and mentors that pushed me to work hard and invest my money and i'm happy to Say that not only am i not financially free, but i'm doing pretty well for myself at the age of 23., and actually i almost had 30 000 in my portfolio now and we started off the year uh. You know about a month and a half ago, two months ago, with 15 000, so i'm very, very content with the growth that we've had.
If i could pass along any of the information resources or tools, do you guys be in the community uh? That's that's all. I can ask for lastly, if you would not mind drop a like on the video, it really does help support the channel and consider subscribing if you'd like to see more content like this now upon popular demand. I've been asked a lot by people and i try to keep things as simple as i can, and you guys know that. That's my that's.
My cup of tea with uh technical analysis is 90 of technical analysis or the base is like three fundamental indicators right and the extra 10 is the the fancy stuff right. The the huge huge list of overwhelming things that uh most technical analysis and indicators are offered on on a chart right, but i'm going to walk you through exactly how to set up my three indicators that i use to predict. Massive massive breakouts, such as jagex such as the ngo such as zom, and we're going to show you this on each of these three indicators i just had tesla pulled up because you know tesla gets people's attention. I, like i like tesla, not in the market, though it's a little scary.
I don't like how much it's grown. I mean i do, but i don't. I feel, like the crash. If it ever happens, it's gon na be insane, but we're gon na walk.
You, through all three indicators that i use to predict massive breakouts for a stock uh, how to set them up, how to read them, what they are and uh everything you need to know about these stocks. But before you get into the video, i just want to say uh. Thank you to the guys over the patreon. We are almost 300 members, strong 296.
jeff, patrick ben wd, wd-40. No, i'm kidding wd. I apologize john m dameen johnny amanda, i'm byron! Thank you guys. So much for the support, it really does mean a lot to me.
They'll have access to the private discord as well as real-time insight to my personal training and uh. The private discord is full of nuggets and gold guys. We talk about all sorts of different stock ideas. We've got channels for uh stocks in particular, uh there's, actually a new mention on look at that. What's this, what is this in? The clwd chat? Um. Well, we'll cover that later, but i just wanted to throw that out there so in case you're interested there is a link to the patreon down in the description below now. We're gon na set up uh three indicators that i use to predict potential breakouts, and this is my personal strategy, guys within technical analysis within trading within investing. There is a million different ways to get to the same end goal.
Some people pay really close attention just to the rsi indicator. Some people just pay attention to the candles, and that's all that they read for technical analysis, because you can dictate a lot about the psychology of who is trading and who is investing in stock. Based on the psychology of candles. We'll talk about that in a different video, but the three tools that i use to predict breakouts are the rsi indicator and to find the rsi indicator you simply type in rsi and it pops up, and that is a relative strength index if you're not familiar with What this is, this is an indicator that basically tells you uh the emotions of investors right, the momentum of investors.
So when you see huge spikes like this huge, huge rips on on on momentum, that is going to show on the rsi indicator, anything over 70 is overbought. Now, we'll start off by telling you guys how i read the rsi indicator um, so to begin with the rsi indicator, anything over 70 or about anything under 30 is oversold, and typically when something's overbought, you can look at the trend line. The trend of a particular stock and how it corrects from that overbought or oversold territory, and that can tell you what you can expect out of a stock in the future. So, for example, we have three overbought marks right here on the rsi indicator.
We have two three times when the stock touched 86, um, 88 and 88 again and when it corrected its low point, was 35 low. Point is 35 and most of the time it was trading just below neutral for its correction. Now, what does this tell me? This tells me that um people who got into jag x right they were holding on to their investment they weren't selling right because if we saw a very harsh correction, we saw a couple days. We saw two days right where the correction was 30 or below, and that's where the rsi indicator hung.
That tells you that people are getting out of the stock they're locking in their profits. Um they're they're overselling the stock as quick as they overbought it, and that tells you a lot about the stability and uh the confirmation and the the uh sentiment towards the stock from potential traders right. Another great way to use the rsi indicator is to know when to buy into a stock right. You want to buy into a stock as cheap as you possibly can. You don't want to buy into a stock when it is being oversold, because the likelihood of it being overvalued is extremely high right. So if we bought in when it was over over sold right here right, you could have gotten away with it, because the stock wasn't very expensive yet. But if we bought him when it was over over bought, as i meant to say, overbought when, if we bought it was overbought right here, he would have been bag holding for about five days until the next run up right, and you don't necessarily want to do That so another great way to use the rsi indicator is to know when to buy into a stock. If you're looking for a swing, trade, a midterm, hold a long term hold it's a great tool to know the current value of the stock and where it's potentialized in the future and if you're buying it on a stock.
When the rsi indicator is at. You know 80 90, anything over 70. The likelihood of a correction coming is extremely high, so that's a great way to know whether or not you're buying into a stock at an overvalued or undervalued cost. And, of course, you always want to buy into a stock at an undervalued cost, because that means that your margin of return is going to be higher than it would have been prior.
So that's uh, that's how i currently use the rsi indicator. That is one of the three that i use to help me get into stocks that are about to break out the next one that i use is the voma, the volume adjusted moving average and if we click on this right here, i'm just going to change the Color, so it is a little bit easier to see you can click modify, and this is for fidelity pro, and i will change this to a light blue line right, quick, real, quick, real, quick and then i will uh also just change the line thickness on this. So, there's a little bit easier to see, let's zoom in on the on the stock, really quick and click on this. Maybe let me do it here: modify line style, we'll just make this a little bit thicker.
So i use the 15 day period and you can use whatever period of time that you want. All you have to do. Is click modify and then the period you know i use 15 days or you can click 200. If you want it'll change it to 100.
200 day you know moving average with uh with weighted volume, adjusted volume, but i use the 15 day period and i always mess this up with the ema, the exponential moving average and to find that all you have to do is go into your brokerage. Account click on indicators and type in exponential moving average, and this is almost always the same in any given stock, and you click on this and you can change the the modification the time period on it, and i always change this to a 200-day moving period. Now, why do i use the 15-day period as well as the 200-day period? Well, this is because it gives you a macroscopic view of the stock and the history of the stock, and it helps you predict not just the microscopic sentiment, the microscopic growth, but also the macroscopic growth right. So this is telling us that over the 200-day period, if it had continued the growth that we've seen over the past right that we would see probably about 1.21 at this given moment - you know on january 5th, but this 15 day period is showing you, okay, the The sentiment and the growth in the recent times is higher than we've seen in the past. Now, how can this help? You predict the breakout? Well, if you see a crossover of the 15 day vomit over the 200 ema, that indicates that we, for whatever reason or another, whether it be news catalyst, a change in opinion increase in volume et cetera. We have broken away from the 200-day trend that we've seen on the stock, so to speak, we have, for whatever reason or another, begun an upward movement that is uncharacteristic of the 200-day moving period on the company. So this is a great way to be able to predict breakouts, and this is how i predicted the breakout on jagex back when it was 80 cents. I did uh present a video to everybody on jagex when it was 80 cents, and i said guys if you get in on this in 80 cents, you're gon na be able to double up on your money triple up on your money.
Quadruple up on your money - and i know people out there that did that right and if we do see this, it did play out exactly that way and this darker blue line versus the light blue line. This light blue line to the bomba, the dark blue line is the 200 ema, the larger the gap between these two indicators, the more bullish a stock is during that given period of time. So this is a great tool to be able to predict breakouts and tell you how bullish a stock is macroscopically speaking compared to the growth that we've seen in the past, and you can use these two indicators as well as the rsi indicator, and it will tell You um hey, is this stock overvalued? Is it going to continue its run up? What are we expecting in the future and more often than not, when you see this sort of uh this, this breakout from the bomb over the 200 ema, it does signify an incoming run. If we look at the ngo, the same exact thing happened back here.
We had the vomit cross over the 200 ema and we can draw a little circle right here to signify that and it did play out exactly that way. The the 15-day moving period was a higher overall growth than we saw in the 200 moving period and uh for whatever reason or another. You know we had the catalysts that were coming up, increase in volume, a bunch of different factors that were playing into this, but you want to bet against the fact that it's not going to follow that 200-day moving period right. It's going to continue to hold on this 15-day moving period and it did play out that way.
Another stock which i'm very high up on nbis mbis, has the same thing that happened before it had a massive run right back here we see a crossover on the 15 day vomit over the 200 ema. We see a large gap up. We see this cross back up over here and it had a massive massive run-up right on the flip side, if you see the 15-day vomit cross underneath the 200 ema, that is the sign that we may see a little bit of a bleeding coming or a little Bit of a dry spout on a stock, the larger the gap between this 15-day vomit and the 200 ema, the more uh, the more bearish a stock is so you can use this also not to just predict breakouts, but when potentially to sell out of a stock And typically, if you buy into a stock right, when that 15 day, vomit crosses over the 200 ema you're going to be looking at a pretty solid run-up, so ndis is a great example. I believe that it is just at the beginning of a massive run. We just had recently the 15-day vomit right here this dark this light blue line crossed over the 200 ema. We have a little bit of a gap, it's starting to gap up again and that could signify an upcoming run with mbis. If we look at zom, we have the same thing happen again and it did play out exactly that way. If you bought in right when the 15 day vomit crossed over the 200 ema, you would you'd be riding real, solid right now, yeah 97 cents.
Currently, you would have got it at 28 cents, uh you're, looking at highs here on a buck 32 and uh. The upside for you here is, is basically infinite. The risk is extremely extremely low right and it does look like this is still bullish territory and it's a great way to predict breakouts in future stocks, um we'll just pull up tesla and take a look at their their read real quick. Now you can see here that on the one month chart we are about to have the 15 day vomit across underneath the 200 ema.
Now this might signify the fact that we're about to see a little bit of a price correction in tesla. You can use this for to predict hey. Should i take profits? I'm part of my position right now. Should i let it ride um should i you know this.
This is just a great way to read the price action on stock and the growth of a stock, and we are seeing tesla start to sizzle a little bit, and that is a signifier to me that hey the 15-day period is matching pretty closely with the 200-day Period is doing so, you know, tesla has grown pretty similar to like apple right and uh, the larger the gap between these these two indicators, the more that means over the last 15 days. If you, we, for whatever reason or another, are seeing unusual growth out of a stock compared to the 200-day moving period and if we change tesla to a six-month period, real quick, you can see that it's basically always trading like this right. It's always growing and there's always a gap here. So that means that the risk with tesla you know currently is not very high if you're looking to get into the play as a investment right.
So it's a great tool not only to find breakouts but to determine how bullish stock is the risk of your stock, whether or not you're likely to see a correction on the stock, and it is exactly how i have found multiple breakout plays in order to turn A quick profit, it is how i got into um jag x, for a really nice return bng over a really nice return, pce for a small return, idex for a small return. It is a absolutely beautiful tool and it's so so easy to use so i'll show you just again one more time in case um you'd like to see one more time. You simply go on your indicators on your brokerage and you type in voma, and if you don't have fidelity, this could either be the vwop or just a moving average, and you go into your indicators again and you find the ema the exponential moving average. You click that you, edit the 15 day vomit if you'd like to. I keep it at 15 days, you edit the 200. You you edit the ema to a 200-day period instead of the 20-day, not 2 200, and you should be able to. You know more easily find breakout potential in stocks and uh more often than not. This comes to fruition.
It does not always you know, i would say seven or eight times out of ten. This does signify an upcoming run. It is a great great tool to help swing trade a stock. So that is my three main indicators that i use to find my best entry point into a stock to signify a breakout to identify a breakout and ride the wave up as well as signify an upcoming bearish run, so that i can lock in my profits and Rinse and repeat over and over and over again, so that's what i have for the video for you guys today.
If you enjoyed it, please drop a like or leave us help, support the channel and consider subscribing if you like, to see more content like this and lastly, i do have an affiliate link in the description box down below for two buddy now tubebuddy is an seo. Optimization website that i personally paid nine dollars a month for and it is a great tool - i i highly attribute this to growing from zero to eight thousand subscribers in one month. So if you're a content creator or looking to become one, i could not recommend this highly enough and uh. If you do use my link i'll, receive a commission off of your purchase at no extra cost to you.
So it's a great way to support the channel and, if you're not interested, that's totally fine. I just appreciate your support by taking the time to watch my videos, so that is what i have for you guys today. Thank you for watching my friends and i will see you all next time. Peace,.
Great info, going to put this into my bag of tools. Thanks for sharing.
5am creeping on all your "How to videos" after watching you on the daily for the last few weeks while the family is sleeping! Can't say thanks enough. THIS IS POWERFUL!!!!
What is your RSI setup in webull I see that you got RSI(6,14,24)?
So VAMA, VMA and VWAP is the same thing? I can't find VAMA on webull. Also, when you're looking at these charts, what time slot are you using for candlesticks? 5 minute? 30 Minute?
Nice video. How would you find these in a screener?
Also, in the Army, new investor and see you opening a bottle of my favorite drink. Easy sub
anyone know how to do his vama strategy on Webull. I tried using vwap and ma and charts still didn't look the same
Thank you Trey are you able to show how to do this on trading view?
Im a newbie, I just found you and subscribers right away. I miss the train of BNGO, i bought at top and sold at low price. I wish I could see ur video early… i should keep it. I just listen my friend and bought NOVN stock at $1.40 yesterday. Please advise me what to do next week. I holding 10k share of NOVN because my friend said this is the second BNGO. Is it correct? Anyone heard about that!?
Great video! Not a lot of YouTubers use fidelity.
my man tippin son u b my youmg man hero for the day and oh y did i say i will drink to that,POW
RSI portion confused me a little. So overbought=over valued
Oversold=undervalued
So it’s better to buy oversold because more then likely there will be a corrective action and the price will go up rather then overbought because there will be a corrective action for the price to go down
Is that right?
Thank you so much, I was going to ask you what indicators that you used. Do you use a particular time frame, such as 1Day, 4Hours etc?
Great video. Watched your stream last night as well. This video was the light bulb going off in my head moment. Thank you so much. Also thank you for your service, especially during these times. We really appreciate everything you do. On and off the computer.
To the anyone that is new or just looking for a way to follow stocks that you have in your watch lists. For me personally and I’m only saying for me because I can only speak on what I do to help get into to positions. I use RSI, EMA, VWAP and Support and Resistance. But I also use my paper trading to open positions that I have on my watch list using a support level that I like. I then open the position through paper trading and watch it while it goes up or down because when I use to open i live position it always felt like it would go down 😂 so when I use paper trading if it goes down I’ll just watch to see if it continues or consolidates. When it stays at the cost that I like I’ll open a live position and it usually doesn’t drop like it normally would and if it does it’s not much and I just average down and get ready for the swing. It’s really helped me out as opposed to just watching it on my watch list. I use my paper trading as my watch list to see the percentage it goes up or down from my original support that I like. If it goes up I obviously just hold and don’t chase. If it goes down then I get in at a better cost average. I don’t know it works for me and I’ve been really successful since I’ve started using that method. Good luck guys! Great video as always Trey!
How big of a difference is using the (ema)200day vs’s the (sma)200day?
New to chart reading I’m loving all your info keep it coming my man!!
Nice video dude. Awesome.
Going to take a few of these ideas and analysis and look at FCEL this weekend. Getting a little bit sweaty on that one. If we hit 24 dollars i get £3,000 which is what $4,000 or so maybe.
If we hit 12 dollars i dont make anything. Haha.
Im being patient and unshakeable though. Lets get that green 🤑🤑🤑
Mate does the webull free stocks link for work for the UK? I've got the app but don't wanna set an account up just yet.
"Give a man a fish, feed him for a day. Teach a man to fish, feed him for life." Thanks
Thanks for the vids bud.
Any update on SHIP?
Im stuck at .89. Should i take a loss. It hasn't budged in a couple days.
Thanks for any help.😊
$5 a member per month. at 300 members…My mans is making $1500 just from patreon members alone. More than my onlyfans makes in 10 years
Bro. What you think of avgr stock. Im in at 1.57