The Trading Pattern You Need to Know

SMB's Free Trading Workshop here bit.ly/3LuHdc6
#TradingSetups #TradingPattern #daytrading
SMB Disclosures www.smbtraining.com/blog/smb-...

[@smbcapital]

SMB's Free Trading Workshop here bit.ly/3LuHdc6

[@MandGmusics]

Do you guys offer a mentorship or courses on Forex ? Im interested in currency trading and i would purchase your mentorship without a second thought

[@nichen6966]

I am new to these Trading concepts and made my head spin .. yet I think I got a gist of this and will come back to this video multiple times and try to see similar patterns and try to practice. Wow. Thanks. Appreciate this kind of video that you are sharing . Its generous of you as by teaching these skills you are not only honing the skills and training the mind to trade effectively but at a fundamental level improving the lives of people who are trying to make a living out of this. How do you say thank you.. just wish or prayers to God , universe the intelligent quantum consciousness 😊.. that blessings go your way to all of you for being generous in sharing this. Thank you 🙏.

[@benonyt]

Awesome! Thank you Mike for that "The longer it holds under vwap, the larger conviction I have to increase selling." 22:00 Mike tips

[@fernandoantunes9941]

These trade reviews are my favorite videos. Thank you, SMB Capital!

[@KT-zx9jr]

Great clip Gents. Nice illustration and discussion of the trade and good timing on short / cover. Thanks very much. Kirby

[@cu8350]

Thank you, Mike, Dan and SMB. Excellent. All around, detailed, well documented, and discussed....as with all you guys do. I am so thankful for so everything that you guys have written/posted etc. Thank you especially for this one.

[@mbellafiore19]

you are welcome

[@waltergonzalez3820]

So loaded with good information. Thank you!

[@TradersFromWakanda]

So Thank you, Mike, Dan and SMB, for the sharing,a lot to learn in this video... The stats don't lie...

[@CoffeeWithFred]

Great information! Appreciate you guys!

[@haoxue3]

loving the detailed analysis, classic

[@varunr689]

Phenomenal Video once again, For your next videos would you please cover "How not to force trading in choppy market; To keep more of your money; Specific things that every prop trader would avoid/pay attention in choppy environment. Once again thanks again for this gem @Mike!

[@kavoos1375]

fantastic video as always

[@keioncrossfield8108]

One of the best trading vid I've watched!,,

[@JB-js1mg]

I would love to see more videos with this intern to be honest i believe i share alot in common with him of course judging by his trading. I would love to see his growth journey and try to implement it in my growth journey of course.

[@claytonkimbrew9100]

This was really really solid! Thanks guys!

[@shaundubyts5695]

a couple parameters are different but I just used this pattern on INDO for a nice win! Thank you so much for this. Still holding small piece....Then stopped out at 7.36. A good start to tracking a new pattern.

[@juantejada655]

Awesome vids guys. 🙏 thank you

[@luxinvestments4014]

Great vid, Always learning from you guys.

[@mbellafiore19]

love love love hearing that

[@kylebroussard5952]

Thanks once again for the awesome free content. You guys have helped me develop so much. One question: where are you getting the tape data from on the right hand panels? What platform is it that you use for this/purchase the data from?

[@alex94115]

Another high quality video from SMB. Thank you so much! Can I ask what Time & Sales and level 2 platform that is? Thank you!

[@Wtfever..................]

Great video guys great work! 👍

[@benpyeatt9986]

Literally laughed out loud at "They keep score!" haha. Great video and much appreciated

[@BiigTitties]

This was great 👍

[@bryanessing3344]

I love this channel

[@jimsykalra]

Excellent!

[@deborahlaing6812]

I am a new trader and I think this is a great set up .....I need to understand it a bit more and start practicing it.

[@tommwidd7178]

Quite an informative video!

[@laowai2000]

Great summary 'Solid'

[@cashbox8441]

Dan, nice job! A couple things to consider: 1- consider a measured move target along with the other items you're already using for when to close trades. Measure the high to the low of the original move - let's say it's 72 cents. Then measure down from the high of the wedge 72 cents and that's your target along with the other items you're already using for when to narrow down the point of closing the trade. 2- if there's a lower high then always expect a lower low until proven otherwise. 3- For your reversal long...once #2 is proven otherwise...a higher low happens...then look to go long on the other trade type. At minute 22:45 of the video, your chart shows the higher low on the bottom right side of the chart, but you "tried to short the pop and had to cover". That is the higher low to go long on. Good stuff. Looking forward to more videos as you continue to put all of this together!!! We'll never be perfect traders, but we can be consistently profitable traders!

[@mbellafiore19]

appreciate the contribution here Cash

[@johnsnow1062]

Lovely Lesson

[@newinvestor4717]

Great review and detail, thanks for sharing but can I ask if your traders only ever run one trade? or would they run several at once?

[@bogdanguranda5754]

Hi Mike and Dan, this was the most useful video from your channel so far, thank you very much for this free learning content. I really appreciated all the amount of details given in this video, it really helps me to know how to execute and not just have a broad idea. I would love if Dan could share more about the scripts he uses and the software he uses them with, I myself being a programmer I would be interested in developing my own scripts. Thanks a lot!

[@Andrew-dj1wd]

Did you get any feedback from Dan on the script and software they are using? I am considering signing up for their training and I believe they give their software to trade as a member.

[@bogdanguranda5754]

@@Andrew-dj1wd I didn't.

[@slipery3896]

Excellent

[@tradingpoker1324]

Great video

[@mrj4ck246]

Man this is golden

[@rewritereality394]

Thanks

[@couchpotato684]

Thanks.

[@mwcinci]

Volume shelf looks promising. Thanks SMB for another tool

[@mbellafiore19]

you are welcome

[@chr971]

What a fantastic video, thanks Mike and Dan! Is Dan still around?

[@theshodiyor89]

will start trade wage patterns too

[@michaelbe797]

Exact same thing on KAVL today.

[@rodkirk1897]

Great trade

[@johnjohnson1313]

Looking at my notes I also was interested in shorting that pop but IBKR did not have any shares to loan(as is usually the case with these low float minicap names.) Or the SLB/CTB fee was too exorbitant for my liking. I'm a swing trader though,not a day trader.

[@ATLJB86]

Mike made me think about some things but what’s new 😎

[@mbellafiore19]

...I Try

[@caseycolomb8997]

Can someone tell me what does covering at wick mean?

[@razzyp3999]

Yes a great pattern well traded! P,S: By the way Mike Loved the interview you did with B trader. 😊👍

[@mbellafiore19]

Thank you. Enjoyed chatting with Alex.

[@kaifeliciano8509]

This is the first video that I have watched by SMB Capital and I am not disappointed, at all. Subscribed 🔔

[@mbellafiore19]

welcome

[@Aigeas]

Hi is there any funded account? On your broker?

[@Adam-mh5ny]

@Mike Bellafiore, The one question ive had about these playbook trades is how often do they really occur? A lot of these trade strategies require 5-10 key things to occur for the setup to be valid. In this case the stock needs to be a gapper + elevated rvol+liquid+ stock has to be under vwap + shelf consolidation . etc. How often does this pattern occur in a month? not very much. So say the trader walks in tomorrow and there are no gappers with any elevated rvol, so no valid opportunities. What does this trader do? In addition, are there traders have a more dynamic style where they have multiple opportunities daily?

[@agedvagabond]

These guys have playbooks with tons of trade setups graded by their ability to execute and the past performance. They would be using scanners to find the best trades on the day and prepare themselves for any opportunity, they have morning meetings etc to share setups they are on a whole other level from us in retail honestly I'd recommend watching everything they have. I don't think they are predicting a pattern to occur, it just occurs on what he is watching and gives him a trade decision, But I could be wrong, If you pause the trade idea section at the start u would probably be able to decipher his initial idea which seems to be fading the pullback/gap.

[@cu8350]

This trade occurs quite often on both intraday and swing timeframes. As Mlke said, you can build a 7-figure a year career on this pattern alone. You probably need to do more backtesting/daily review/ journaling /stats to gain confidence in how often this occurs and where the edge lies. This trader here actually did all of his own coding on Python/tos, etc, to formulate his scans in addition to all of the other work he did to gain confidence in executing this trade. True, there may be days that this setup won't present itself, but if you're already thinking that going into the day, you are not approaching with the opportunistic mindset that is required to be successful over the longrun. Also, sometimes less is more. Trading only your best trades and learning to stay on the sidelines and learning more is, I think, maybe one of the most profound shifts you can make as a would-be future professional trader. Thanks again Mike, Steve and everyone else at SMB for continuing to put together such incredible videos/books/tweets etc. This video was fantastic.

[@mbellafiore19]

CU said it very well in this thread Adam

[@Adam-mh5ny]

@@cu8350 @burnouttrader well said

[@esestellaegbedi4456]

hese guys have been the real deal since "wall street warriors" do your research. amazing video too!

[@DJOOO]

Where was the gap ?? Is it the lack of liquidity during the drop between $40 and $2.50 makes it a gap ? In that case would it be fair to call it a breakdown/gap ?

[@rohana9150]

SMB CAPITAL @Mike bellafore , sir my name is Rohan Im from India i learnt a lot from ur channel. I have one small request please make a video on 1. HOW TO CHECK RVOL, ATR, SHARES FLOAT .

[@harrygordon7865]

Is this pattern effective when trading CME equity futures, specifically, ES and NQ or only individual stocks.

[@mbellafiore19]

if their is a catalyst- news or technical

[@nayanmipun6784]

Please say how people can take classes from your smb. Do we need to physically come over there? Do we need to get classes online? How much is the fees? Or we pay after the income we make after classes?

[@eggspanda2475]

$40 down to $2.35 Thats a fall John Milton would write about

[@agedvagabond]

Price is truth is Al brooks moto, the man's a genius.

[@mbellafiore19]

that is a helpful idea.

[@mbellafiore19]

I thought it came from Austin Mitchum but maybe he got it from Al Brooks. I had never read or heard it.

[@tdunn2]

Thanks, gentlemen, for sharing your experience and knowledge with us. Does this strategy work within the crypto markets as well? I’d assume it does but we all know what assuming does in trading - makes an ass-hole in my pocket from which all my money drains out!

[@richardvlasich7744]

What trading platform are you using in this video? Thanks.

[@mbellafiore19]

proprrietary platform only for firm traders

[@richardvlasich7744]

Does one have to know how to code to do this? My question arose when the "code-ish" looking slides came up in the latter part of the video.

[@mbellafiore19]

you do but the coding is simple. it is in python.

[@BagHolder323]

No, this IS interesting. These are the ones I play.

[@user-ko7zu9ko2m]

Хороший анализ и отбор бумаги для торговли. Открытие шлюза вниз дало дорогу потоку движения. Вчера Тесла потоком шла хорошо вниз. Графики индексов на покупки не намекали.

[@thealternativecontrarian9936]

what?

[@lightkirsche]

wow .. stats!

[@mcolsenet]

what is the period taken to calculate the VWAP price?

[@thealternativecontrarian9936]

VWAP is always by the day, doesn't change regardless of your timecharts

[@harrygordon7865]

Does this strategy also work with CME equity futures or only individual stocks

[@mbellafiore19]

it certainly does when their is a catalyst- either technical or news

[@sanbetski]

nice astrology

[@gao2737]

I wonder how many times the trader tried to short before he really got the fade movement. And tbh, $3 stock, price is too cheap for short fade.

[@90sideways]

Is this guy on still learning?

[@jonathanpotter2487]

SMB.... The Hogwarts for market Wizards

[@albertocrespo7525]

Felt like mike was getting sick of that poor guy 😅

[@mbellafiore19]

not at all. love Dan. must have been me then.

[@peterlikesfriedrice]

Nice video. Side note, you should just spend $100 and find a video person to change your video software to color correct the video. Boss man is too green and trader is too red. Your videos would look more professional if they were color corrected correctly. It isn't hard to do, you just need to some to show you. (not me)

[@stargazer8085]

Unfortunately you dont find that clear type of intra day setup in high beta names. The fact you had to go back to DEC2021 in a crappy biostock to find that pattern is proof positive that the pattern is quite rare. Even if you find a subvwap converging triangle pattern (wedge) you often see it too late. Oct292021 in DIS had the same setup

[@shortcrashcourse8313]

thumnail saying something else, title is something else, and video is showing a short trade that happens once in a life time, Thanks for wasting my time

[@mohammadfarzan230]

Thanks