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Full Breakdown of My 85% Edge Strategy

Oliver Velez Trading1:20:11

Transcription

I was wondering whether or not I should share this because this play is one of my key bread-and-butter trading plays every day. There's rarely a day I don't play this, and it's responsible for a good portion of my trading gains each day. My traders can tell you, many of them have become experts at playing this crash play. So, I was a little skeptical about sharing it because I don't want them to get angry with me. Oliver, you're sharing too much. Da da da da.

That these three concepts I shared with you today, they're going to pay dividends to you forever. They don't stop working. They're going to pay dividends forever for the rest of your living days as a market player. I have been using these for three-plus decades. They are just as reliable today as back in the 1990s, as back in the early 2000s. You don't have to be overly complex to really play the market successfully. In fact, the simpler your approach, the more powerful it is. Complexity weakens the power.

I decided to do it because the crash play that I play fits so perfectly into this overall theme of what I'm trying to get you to understand: how to read when the odds suggest that you're near a top. How to decipher if the pullback from that top is another normal one, or is it the beginning of the collapse because it's too vertical, it's too violent, it's too elongated? If the bounce from here is going to be a sucker play, how do I turn the sucker play into money? How do I turn it into profits? And this is what the crash play does once you know you've got that initial crash. If the bounce is false, then why not play the falsity of that bounce? If the odds of a new high is what, 15%? Why not turn it on its head and be profitable 85% of the time? See, guys, when I find something with low odds, I play the other side of it and get the big odds. So, if a bounce after a crash, if a bounce has 15% odds of making a new high, that means 85% odds of going lower. Then I'm going to turn the 85% odds of going lower into my favor by playing it that way. So, I have things that have low odds of occurring, but that means that they have high odds on the other side, and we turn them into tactics. This is where the crash play comes in. Now, let's get to it.

[Music]

I have to remind you that everything that I teach you is applicable in all time frames, all markets. Whether you play the market short-term, day trader, swing trader, wealth trader, long-term investor, everything that I teach you is applicable across the board in all time frames. But they're also applicable in virtually every single market. It does not matter what market you trade. It does not matter what time frame you trade. All right? And the very best traders are multiple time traders. All right, guys. Let's start.

How to identify the market top. Now, this is the market top in all markets. We're talking about the market top in all markets and in all time frames. One of the major keys to market mastery is being able to identify when a market has topped, but not only when it is obvious that it has topped. One of the very great master keys or major keys to market mastery is being able to identify when a market is about to top. We're going to go over specific characteristics that are going to help you be able to know almost in advance when a market is likely to top, and I'm going to teach you how to nail it virtually every single time.

Now, let's talk about the characteristics of market tops. Characteristic. There are more than four, but we're going to cover the four main characteristics of a market top. The players that really do super well in the market, they know how to identify tops. They know how to sidestep them. And more importantly, they know how to turn market tops into fast, powerful profits because drops from major market tops happen harder and faster than rallies off of the bottom. So profits are faster, and they're bigger, and they're harder for market tops. And this is why traders who have the ability to identify market tops, they tend to be the more profitable traders overall.

Now, the four characteristics of market tops. Number one, a major market top is usually preceded by very dynamic three to five leg runs. Now, I'm going to show you what this means. In essence, a stock can run from a low point to a high point, but it will do so in segments. So, it might run up, pause, run up again, drop a little bit, and then run up again. All of these are individual legs. Leg one, pause, leg two, pull back, leg three. But this is an entire run to the upside. But every run to the upside is really comprised of what I would call different legs or segments. And you have to be able to read the segments and know where you are in the dynamic run to the upside because statistically speaking, runs that lead to major tops, they happen over a three to five leg run. And a trader who does not understand that tops come between three and five legs, they often get caught at the top buying leg four or buying into a leg five. So if a stock runs up over several legs here, and a trader is going to buy this leg when it is leg one, leg two, leg three, leg four, not knowing that there's a lot smaller upside from here than there is downside to go because you're already buying into a very mature multi-leg run to the upside. The best odds for maximum profitability, guys, is when you are buying leg into a leg one or leg two move to the upside. You're riding leg three, you ride leg three, you start taking profits in leg four and leg five. These are your profit legs. But if you don't know how to read a market's legs, how do you know where you are in that market's dynamic run-up? We buy legs one and two. We ride leg three. We take profits on legs four and five. Look at my face here. Three to five legs up. We buy leg one. So we buy legs two. Leg twos. You got to know how to read. What's leg one? What's leg two? You ride leg three. Relax. Don't tinker. Don't touch leg three. You take profits on leg four, leg five. Leg four and five are not entry legs. They're profit-taking legs.

Now, what I mean by this being a characteristic of a market top is that you start to increase the odds that you are near a top after leg three. So, it's possible that leg three is the top. It's even more possible if you go to leg four. Four is the top. And if you get to leg five, not only is that extraordinarily high odds that you're near the top, but that top is typically going to cause or produce a very violent collapse to the downside because so much leverage has been built into all of these multiple legs. First of all, being able to know how to read legs, and I'm you're going to know how to do that today. But knowing where you are in the multi-leg run-up is one of the master keys to taking your trading to a very, very high level because you won't get caught on these tops. You and you'll also know how to turn the tops into quick, hard, fast profits. All right, let's get back here.

All right, so characteristic number one, dynamic three to five leg run-up. Um, that's one of the characteristics that you're near a top. Characteristic number two, near vertical acceleration toward the end. So if you got this multi-leg run-up, one, two, three. If this leg is the most vertical of all the other legs, here's leg one. Here's leg two. Here's leg three. And leg four winds up being the most vertical, that's high odds that that's the final leg. If the most recent run-up after a pause, after a rest, because pauses and rests, they separate the legs, right? This one is the most vertical. That's the one you. That's the one that's going to be the top most of the time. The most vertical leg is mostly the top. I'm going to repeat that again. The most vertical leg of them all is usually the top one. You've got the top. So, three to five leg run-up, near vertical acceleration. That's usually your final leg. If I were to isolate the run-up in leg four, this run-up is made up of multiple bars. So, that four, that fourth leg could look something like this. Boom. Boom. Boom. And boom. So, I'm saying that could be that leg right there. Often times the final bar of this multiple bar leg run-up is the biggest one of them all. When you've got that scenario, you've got vertical run-up and the last bar of the vertical run-up is the biggest bar of the entire run-up. You've got your top, baby. You've got your top. You're at or near it. We call this an exhaustion elephant bar. It's exhaustive in nature. The bulls are shooting all the bullets they have at the market, and they've just emptied the clip. They've emptied the gun. There's no more bullets left. There's no more buying power left. They put it all in that last bar. So that's the third characteristic. Remember, we got three to five legs up. You're likely near a top. Near. If the last leg is near vertical acceleration, you're you're very likely near the top. And if the final bar of that near-vertical acceleration is the biggest bar of that last leg, you're almost certain that that you're at or near the top. And the last characteristic is what I call the three-finger spread, or what I call dual space, which I'm going to demonstrate for you.

Here's what's important to understand with these four characteristics. You don't need them all. You can really just have one of them. Often times, they are stacked. You may not get all four. There are times you'll get all four, but you may not get all four. You only need one, but often times you'll get two or three of these stacked at the same time. I have rarely in my whole career seen a major top in any stock, any market, any index, it doesn't matter, that did not have at least two of these. I can probably count on one hand in 44 years. These four characteristics usually come in pairs. You usually get two, sometimes three, and every now and then you'll get all four of these and you're like, "Whoa, all four?" You better watch out below.

So, let me show you some diagrams of this. Here is the three to five leg plus vertical blow-off image. I'm showing you two of the four. Remember, characteristic number one is the three to five legs. Now, legs are usually fluid runs that are interrupted by a pause of some type. Sometimes that pause can just be sideways movement and boom, you're off to the next leg. Sometimes that pause can be a mild pullback and then boom, you're off to the next leg. Sometimes that pause can be very brief, just in a little stutter, a little flickering, which I can demonstrate with a circle, and boom, you're off to another leg. There are separators. These are separators between legs. You see, this is a separator between legs. This pullback is a separator between legs. There are really pauses on the way to the upside. If you know how to read the pauses, then you automatically can see that there's leg one, pause, leg two, another pause, leg three, another brief pause, and you're into leg four. So, you're already in the zone of three to five, which is characteristic number one. This means that you're in a mature up move. It's not fresh. It's not new. In addition to you being in the range of three to five legs to the upside, you've got the second quality, which is vertical, the last leg is the most vertical one. So this was a nice angle to the upside. Two was a nice angle to the upside. Three was a nice, but four I tried to show you is more vertical. That increases the odds that you are at or near the top. Vertical nature of the last leg. If the last leg is more vertical than all the other legs, jump the odds that you're at or near the top very, very in a very big way. All right. So these are two, the three to five leg run-up plus vertical blow-off move. All right.

Now, the third characteristic is that the last out of this last run-up, the most recent bar is the biggest bar of the entire run. So, not only is leg four the most vertical, inside of that vertical run-up, the most recent bar is the biggest one of all. Now, guys, when you get the last bar of the vertical last leg, if that's not only the biggest bar of the last leg, but it's the biggest bar that ever occurred during the whole run-up. OMG, you're talking about the mega top of all mega tops. You've got the most vertical leg of of them all. Inside of the vertical leg, you've got the last bar is the biggest bar of that leg. But you look and see it's not only the last biggest bar of that leg, it's the biggest bar of the whole freaking run-up. Do you know how many traders are trapped and piled into that bar? And that creates a top-heavy market. You understand? You understand what a top-heavy market is? That most people are committed at the top, which means that they're vulnerable to a move to the downside and will start bailing ship at a heartbeat. It's powerful when you have this deeper reading ability, this deeper ability to almost see inside of the market and to know what's going on to give you that that refined feel. With these characteristics, I know when most traders are trapped at the top. These are the characteristics that let me know that, and I know they're susceptible to moves to the downside. Now it's taking your analytical skills to a very, very high level. There are not many people walking around in the markets today that have this ability to read like this. So we've got the three to five legs. Characteristic number one. Characteristic number two. All right. The last leg is the most vertical. That's characteristic number two. Character number three. The last bar in that leg is the biggest bar. That's characteristic number three. And characteristic number four is the three-finger spread or what I call often call sometimes dual space.

So what is this? This involves the 20-period moving average and the 200-period moving average of your item. Whether it's a stock, an option, a bond, a futures contract, a forex pair, doesn't matter. It's the 20-period simple moving average of your item and the 200-period simple moving average of your item. Now, when your stock leaves the moving average in the dust. So, when it starts to just skyrocket away from the nearest one of these two, you create what I call the three-finger spread. Your stock is way above the 20-period moving average. Your 20-period moving average is separated and well above the 200, creating dual space between the three items. This space tells you there's a lot of room to fall. You've got dual space. A lot of room to fall. You don't have a lot of room to fall from here. You don't have a lot of room to fall from here. But the higher you go, the higher you, the wider that three-finger spread. And guys, the reason why I call it the three-finger spread is because I tell traders, look, just spread these three fingers out as wide as possible. Your stock, your 20, your 200. When you've got that wide spread, that stock or whatever you're looking at is very vulnerable. It's on thin ice up there, and any crack will cause an avalanche of traders to just leave the stock, accelerating the move to the downside.

Now, there's reasons why this makes the stock vulnerable. I want you to think about how many people are holding profits. Think about this, traders. Let's remember, you're not trading stocks, you're trading people. So stocks don't move unless people act. It's really the actions of the people that are moving the stock, right? So in essence, it's a psychological game. It's playing the mindset of your players. Now, if a stock has had three, four, five legs up, there's a lot of people holding profits. If you get way above those moving averages, there's a lot of people who've got hefty unrealized gains. That last big bar exploded their profitability, and now their profits are so fat, so big that they want to protect them. So any amount of red freaks them out. Uh-oh. Wait a minute. I'm getting out. I'm getting out. I'm cutting half of my position. I'm doing that, and it causes an avalanche. Somebody yells fire in the theater, and all the traders start rushing to the exit sign, the exit sign, trying to get out of the theater before it completely burns up their profits. So when you can technically read this point where you know the stock is on thin ice, now it's very susceptible to profit-taking. One little spook, one little scare, one solid red bar is going to send everybody from up here in Pluto with the three-finger spread. It's going to send everybody running for the exit signs. Some of you understand the psychological part of this picture and why it typically leads to violent drops to the downside. When you understand it from the people side, it's better. You don't have to understand it from, well, you know, the company's products are not that good anymore. That's why it's going to go down. What? Um, the PE ratio is too high. Isn't that why it's going to come down? No. If you read it from the people's side, do you understand? Look at this four-leg run-up and the violence of the last leg, they're holding huge profits here. They're going to be taking those profits soon, and any scare is going to send this stock reeling. That's the proper view. Not the PE ratio, Oliver. It's crazy. Unreal. The PE ratio. There's your three-finger spread right there, guys. Lots of room to fall.

Now, what I'm telling you is that this is all four things together. You don't have to get all four things, but when you do, it's wow. You got one, the three to five legs. Two, you've got the fourth leg is vertical, is the most vertical. The last leg, the last bar in this leg is the biggest. That's criteria three. Big bar. And the fourth is the three-finger spread. Boom. Boom. Boom. Crack. This will really put you in an elite class being able to read these signs here, guys.

How to survive chaotic pullbacks. So, I want you to understand what I'm doing here. I'm first teaching you how to identify high-odds market tops before they actually drop. How do I know if from that top this is just another pullback that will lead to a continuation, or is it the actual final one drop? So what I'm taking you to the next step now. How to identify a pullback versus a collapse from a top. A collapse from a top is not a pullback. A pullback is buyable. A collapse from the top is not buyable. So you need to know the difference and how to read the difference. That's what we're going to go over next. Not only how to survive chaotic pullbacks, but I want you to know how to profit from them as well. So, let's talk about this.

In order to do this, I'm gonna have to teach you my personal basic but very powerful trading division. Not not arithmetic. I mean, not not addition, not subtraction, but division. And I use this concept. I call it 1/2 and thirds. My traders will tell you that I am constantly on them about this concept. I want it to be something they automatically do all the time. So, what I'm diagramming here is a strong run-up in the stock. Now, that's not one bar. That's a multiple bar run to the upside in your stock or your underlying item, right? And I want you to note that, okay, it tops and it starts to pull back. Now, what you need to do is you need to divide the run-up in half. So from start to finish, where did this run-up start from? Started here. Where did it peak from? Temporarily, at least. It peaked there. Now divide it in half. Just draw a line straight in the middle, just like I did here. You've got to split that entire run-up. Find the halfway mark. Guys, I don't want you going out to your local convenience store and getting rulers and, you know, right angles and geometric tools. Oliver, is this is this halfway? Like, it's a general thing. You don't have to be very, very precise. Just cut the thing in half like you would a banana. Boom. Okay, that's the halfway mark. You're not measuring it and trying to get it so perfect. Okay, so we're going to cut this thing in half. What we're also going to do is cut it in thirds. Now, what this is going to do is give this entire run-up four zones. Now, I'm going to show you the four zones. I know you see them, but zone the top third zone, you've got this next zone, you've got this next zone, and you've got the bottom zone. So, coming on the way down, you've got zone one, you've got zone two, you've got zone three, and you've got zone four. You've got. So, you have to be able to know how to zone out your run-ups and your run-downs. It everything is applicable in reverse, but we're talking about the run-ups now. So, you've got to be able to divide all of your legs or run-ups into these four zones. And you do that by cutting it in half and cutting it in thirds.

Here's the key. When your stock stays in the top third, you've got 80% odds of a new high. So, we're dropping like this. You're dropping, but you turn. Boom. Without violating, severely violating that top third. That's 80% odds you're going higher. And you're going higher by a decent amount. Not just a peek-a-boo high. You're going to shoot way past that high. So, let's get these odds straight. The pullback stays in the top third of the entire last run-up. You're going higher, buddy. Now, I call this the color change, right? Right. I've gone over this many times in my videos. This is a color change. Red, red, red, and then all of a sudden, boom, green reverses everything. Boom. Right there. That's your color change. We're looking for a color change in the top third to get that 80% odds we're going to new highs by a decent amount. If your color change happens in the top half, your odds drop to 65%. Still good odds. But you go from 80% to 65% that you're going to move to a new high. Still better than flipping a coin. Still profitable. Guys, remember what 65% means? It means that 6.5 times out of every 10 you win. Which means that in order to get 6.5, sometimes you get to a new high nine times out of every 10. Sometimes you get to a new high eight times out of every 10, seven times, sometimes four times, sometimes five times. But it averages 6.5 times out of every 10, you're going to a new high. As long as you get that color change, remember what a color change is, guys. Red, red, red, red. Then green reverses the red. Boom. That's your color change. This is your color change. Green takes out red. So if you get this in the top half, you're dealing with 65% odds of a new high. If you get this in the top third, you're dealing with 80% odds that you're that you're moving to a significant new high. How many people, guys, know these odds, know these stats? How many people have this so precise this way? Very few. Most people are out there guessing, rolling dice, rolling bones, calling up the psychic hotline, checking out checking up on other losers in Facebook chat rooms and stuff like that. Not you. You're playing by the numbers. You're playing by specific precise concepts and strategies.

If your pullback falls to within the top within the the second third zone, remember these zones, your odds drop to 35% of a new high. So now we're going into the other way. It's better not to bank on a new high if your pullback is this deep into the last run-up. See, this is your last run-up. This deep into the last run-up, the bounce is probably not going to make the new high. That's what the odds suggest. And if you drop to the last part, remember these four parts, right? Your odds of 15% that you bounce all the way back to a new high. That's almost saying it ain't happening, bro. Do you have these odds? Talk to me. I need somebody to talk to me. You have these odds. 80% top third. 65% pullback to the half, around halfway or less. 35% you break the half. 15%. You break the bottom third. Tell me you've got this. Nice. I can feel your intelligence rising rapidly. I can feel it. I can feel it going higher and higher and higher. Your understanding. Wait till we look at examples here. It's coming. I'm going to show you. I told you I'm going to blow your mind with this.

All right. The pullback versus the collapse. Here is where if you just get this down right now, what I'm about to cover for you, if you can just get this, this is going to take you to a different stratosphere. Just this one thing. Because most of most trouble, most trouble in the market is not knowing how to read the not knowing if this pullback is a buy or should I run for the hills. I'm telling you, like 70% of all problems, all lost money in the investment world, in the swing trading world, in the day trading world, is not knowing how to read the difference. Not knowing whether this is a gift, this drop, is it a gift or should I be running for the hills or should I be betting the other way? If you can just get this, you're going to go to a completely different galaxy in your trading. Promise. Probably the most important thing I'm going to explain to you here today. Let's go.

Pullbacks versus collapses. This is the difference. If you can read this difference, it will make a huge difference. The healthy pullback, the gift, the one that you should be thinking about buying. Here are the characteristics. Number one, first of all, I want you to note, we're talking about after a nice strong run-up in your stock or your underlying item. Okay? Nice strong run-up. Remember, you're supposed to always cut it in half and third. Don't forget that everything is going to come from you knowing the area of the half and third, knowing the four zones, your pullback into these zones. If it is more of a drift, it's healthy. So, look what I'm saying. A 45-degree angle drift. Now, the way I explain it to my trading kids is this. I draw a little mountain and I draw a little hang glider here. He's going to hang glide off this mountain into the meadow. But he wants to jump off the mountain and glide down the mountain, you see, gracefully, smoothly. But you see, he doesn't want to trip and fall straight down. Your pullbacks that are healthy, they drift down the mountain. They don't starkly trip and fall straight down from the mountaintop. There's a difference between a drift and a trip or a collapse. So, we're talking about this run-up drift, not run-up collapse. See the difference? This will tend to go to a new high. So, we're talking about run-up drift. Boom. Run-up drift. Boom. Not run-up collapse. No, run-up collapse. That's too straight. That's too vertical. So, 45-degree angle drift. Now again, don't start telling me, "But Oliver, it was only..." But Oliver, it was 42 degrees. That's why I didn't buy it. Please. All right. Please. It's a guideline. As long as it's not straight up and down, you're good. But out of there, it's 41.3 degrees. If this drift remains anywhere above the halfway mark, you're good. So, what are you buying here or there? You're buying the color change. You're buying the first time a red bar gets taken out by a green bar. Boom. Right there. There's your buy. Right above the high. Boom. Boom. That's what you want to see here or there, but only if you have the 45 or so degree angle drift. The color changes don't count if it's a collapse.

Now, the last thing I want to point out to you, there's usually no violent elongated bars in your drop, especially the first one. Let's say you have this run-up and you get something like this. Boom. That is too violent of a first bar drop. Usually your color changes that might happen will fail. It'll trick you into it. Why? Because this is too violent. It's too powerful. It had too much velocity. I don't want to see that in a pullback. To me, that's a collapse. That's not gracefully coming off this mountaintop. So, no violence to speak of and no breaking the half and 45-degree angle drift, no vertical drops. And that's when you know that this pullback is a gift. It is not a reason to be concerned. It is not a reason to run for the hills. It's not a reason to be nervous. It's a reason to add. The $64,000 question on Wall Street is always, is this the top? Does this pullback mean that we've topped, or is this a buying opportunity? That's it. Every financial show on CNBC, Bloomberg, every it's the same question. Are we near the top? Have we topped out? Is this pullback just healthy? Is it normal? Is it a gift? Is it a buying opportunity? They have entire financial shows around this one question. And I'm giving you the keys to being an expert on those shows, being an expert in your play, how to identify collapses that you should be concerned about versus gifts that you should be trying to find more capital to put into the play. These are the separators, traders. These are the things that separate you from the rest of the crew. These are the things that create the elite for you, that that catapult you to the elite class versus just the regular class. There's not many people walking around today slloshing around in the markets with their families' money. Not many people who understand these nuances.

Now, the collapse, elongated vertical drop. This is not a hang glider gracefully coming off the mountaintop. Nope. That's tripping off the mountaintop. Something something wrong happened there. He didn't gracefully come down. He tripped and fell. Even if, guys, you get the color change here, don't fall for it. Do not fall for it. Do not fall for it. The drop was too vertical. It was too elongated, too violent, too much sudden, powerful, abrupt momentum to the downside. You see, guys, what you must understand is that pullbacks are just pit stops. They are rests. Your athlete can't run without having some type of rest between races. Each leg is a race, and so it pulls back to rest, to get rejuvenated, refreshed. In NASCAR, they don't keep running around and never have a pit stop. They get a pit stop. It's for a couple of seconds, of course, but it's still a pit stop. It's still a rest. It's still a refresher, and then they're right back on the racetrack. These pit stops, these rests are healthy. They allow your stock to refuel and go higher, but there are some drops that are not rests. They're warning shots. They're signs you better get the heck out of dodge. They're signs of dumping. They're signs of institutions leaving the stock right now. So understanding this difference and knowing how to play them both just takes you to a completely different level in your knowledge, in your level of sophistication, and your entire market play. That's what will tend to happen when you get the straight down vertical violent elongated initial drop from the top. It's over. Bounces are sucker plays. For those who do not understand this, bounces in this scenario, they're sucker plays.

Okay, let's talk about my famous crash play. And I think after this, we start looking at some examples. All right, my famous crash play, guys. Now, listen. I was wondering whether or not I should share this, but because this play is one of my key bread-and-butter trading plays every day. There's rarely a day I don't play this, and it's responsible for a good portion of my trading gains. Each day my traders can tell you, many of them have become experts at playing this crash play. So I was a little skeptical about sharing it because I don't want them to get angry with me. Oliver, you're sharing too much. D.

I decided to do it because the crash play that I play fits so perfectly into this overall theme of what I'm trying to get you to understand: how to read when the odds suggest that you're near a top. How to decipher if the pullback from that top is another normal one, or is it the beginning of the collapse because it's too vertical, it's too violent, it's too elongated? If the bounce from here is going to be a sucker play, how do I turn the sucker play into money? How do I turn it into profits? And this is what the crash play does once you know you've got that initial crash. If the bounce is false, then why not play the falsity of that bounce? If the odds of a new high is what, 15%? Why not turn it on its head and be profitable 85% of the time? See, guys, when I find something with low odds, I play the other side of it and get the big odds. So, if a bounce after a crash, if a bounce has 15% odds of making a new high, that means 85% odds of going lower. Then I'm going to turn the 85% odds of going lower into my favor by playing it that way. So, I have things that have low odds of occurring, but that means that they have high odds on the other side, and we turn them into tactics. This is where the crash play comes in. Now, let's get to it.

My famous crash play. Um, I say it's my famous because most traders who've been following me say, Oliver, you basically do one thing 70% of the time, and it is this crash play. It involves a violent bar crash, elongated, powerful, bigger than normal. What does that mean? I can't give you a specific number in terms of size. All I can just say is look to the left. And if this bar is bigger by orders of magnitude than all of your recent bars to the left of it. Here are your recent bars to the left. Now look at the size of this one versus the average size of these. That's a crash bar. So crash bars are elongated, powerful, violent. They have a velocity that is through the roof. These crash bars, they can come from a top. So you can get something like this. Let me show you. You can get something like this. And boom. Now, here's your crash bar. Boom. All right. So you get a crash bar from the top. You can actually get a crash bar from a gap. So let's say your stock was trading here yesterday, and this morning the stock, let's say it ended here yesterday, and the following morning your stock opens here on a gap and crashes right into support, but it's still a crash bar. You can get a crash bar from the 200. So, there are a variety of scenarios where this violent bar crash play can materialize, and they're all profitable. All of them. Some people would say, "Well, Oliver, but the but if it crashes to the 200, isn't that in the buy area?" No, not if it's a crash bar. The crash bar cracks the 200 significance. Sort of like this was ice. So, the 200 was ice, right? Was a frozen lake. But this crashed so hard into the frozen lake that it cracked the ice. And now any bounce is a sucker's play. Boom. Any bounce is a sucker's play. Boom. Any bounce is a sucker's play. Boom.

Now, let's take a look at this. This is so powerful, guys. I'm going to keep pounding the table on this. You're supposed to divide anything big in half and thirds. Whether it's an entire run to the upside, whether it's one bar that's powerful up, divide in half and third, divide this in half and third. Even if it's multiple bars, or if it's one giant red bar, crash bar, you're going to divide it into half and thirds. I tell my traders, just do this across anything that's big. A big multi-leg run-up, a single big leg, half and thirds. A single bar up or down, divided into half and thirds. I need you always thinking half and thirds, half and thirds, half and thirds, half and thirds. If it's big. So, we got the big crash bar. Whether this is coming from a top doesn't matter. Whether this is crashing to support doesn't matter. It's the crash bar that matters. Now, once I have the half and thirds set, I want you to focus on these two zones. And I want you to wait for a color change in either of those two zones. So, what is a color change again? Green bar up, green bar up, green bar up, and boom, there's when red eliminates the low of a green. That is your color change right there. Boom. Take the short position. That color change sometimes might be a little higher and go there. Boom. That color change. Color change. Boom. If you get the color change here, you still might drop, but you're likely to only drop two levels. So, level one, level two, and then reverse. So, it's the bottom levels that we really want to see the color change in order to get the new low. You can get it here, but you're likely only to drop one, two, reverse. How many people you think in the world know this? How many outside of you? Very little. These are very elite things, guys. This is elitism. Yes, I'm patting myself on the back.

So bounces into crash bars are sucker plays. There are so many traders who buy. Oh, it's turning. Yeah, right. Oh, it's coming back. Yeah, right. They're sucker plays. So there's 15% odds that you get all the way back from here. 15% odds that you get to the all the way to the top. So 85% of the time you go to new lows from here after a bounce. So this means that 8.5 wins out of every 10 tries, you can make a fortune. Imagine going to Vegas and winning 8.5 times out of every 10 dice rolls or roulette spins. Are you kidding me? You will bankrupt Las Vegas with those odds. This is crazy. This has been largely a teaching session, guys. 85% odds of follow-through here. That's the odds you're dealing with.

So, why am I calling this trading through chaos? Because people call when things like this start happening to stocks, it's chaotic for people. But you're going to turn the chaos into profitability. When something cracks after running up, this is chaotic for people. They don't know what's going on. They don't know why all of a sudden the change. It's chaos. And I want you to see the chaos as an opportunity. We don't trade Bitcoin, guys. I despise people who try to trade this thing. We accumulate Bitcoin. We don't trade it. But I do want to use it as an example of the top third because Bitcoin does a lot of top thirding when it's in a bull run. So what do I mean? Remember I told you that there are legs to a run, right? So that's a leg. But and if it starts doing this, remember what you're supposed to do with your leg? You're supposed to cut it in half in thirds. If your item has run up and it stays in the top third, remember what the odds are. 80% you're going higher. Remember that? That's one of the slides in the presentation. If you go down here, you're 65% going to a new high. Remember those odds. Bitcoin does a lot of one-thirding. It does halves, too, but it does a lot of one-thirding in the bull run. So, let me show you. Let's look at the one-thirds. All the one-thirds. This is just from April. So, we run up and then it one-thirds on you, right? So, that's leg one right there. Then you run up and you one-third. It just doesn't come back to the halfway mark often. And you run up again and you one-third it. It does a lot of one-thirding. So now it gets into this just this pretty predictable trading range here. And then right when it has this 20 MA halt play here, it starts one-thirding again. Run up. Now it's one-thirding again. You see? And see how you can read the legs. What's the odds of a new high? Tell me, what's the odds that we go now into the 120s toward the 130s?

So, I wanted to show you the one-third concept on Apple here, guys. Take a look. Take a look at the left-hand side of the chart. I want you to grab the beginning of the move. I want you to grab the top of the move. Now, sometimes it's very subjective, guys, reading the different legs, you know, it can be subjective. I get it. You get good at it, though. You get good at it. All right. So, you're really concentrating more on either fluttering around, doing nothing is a separator. Pulling back is a separator. So, that's a separator. Fluttering around in a sloppy way is a separator. Even a brief little one or two red bar thing here like that is a separator. It takes a while, but you start to get it starts to get clear. What are separators? Boom. Separator. Boom. Separator. Boom. So, you've got multiple legs here on the run-up. One, two, three, four. You're mature. All right. We don't have the characteristic of the fourth leg being vertical. We don't have that. Remember, you don't need all of them, but we do have the three to four legs up. We've got the three-finger spread, and we have boom. I'm taking that as a bar that's elongated and powerful enough to where if I were to split this in half, in thirds, you see how it bounces up right there and then collapses again. Now, my traders know I would be shorting up here. But what I really want to also show you is I'm showing you how to do it with a bar, a single bar where you take a single bar that's powerful and you split it in half in thirds. You know that the bounce is a sucker play. So, so the people who think that you're bouncing back from here and buying that, they get suckered in. But also, I want you to be able to do this on a full run. You see that's a full run. Now I want you to look at this like one move and I want you to split this into half and thirds so that your macro sucker play can be played. So this is the micro sucker play. Drop sucker play drop. But this one is the macro drop half and thirds. Sucker play drop. Do you understand the micro and the macro? Let me know if you understand. Micro is the one bar attempt to move up and boom. That's the micro. The macro is the full move drop. You look at the full move as as like it's one bar. Then you split that in half in thirds so that the multiple bar sucker play bounce. Boom. You know how to profit from that too. So my traders know to grab the micro and the macro one. I want to make sure you understand this. I just want to see your comments. This is Do you do you understand the difference between the macro and the micro? Let's continue. Let's continue looking at these examples here.

So guys, where is you got your micro bounce here into the collapse bar. You've got your macro bounce here. Remember, you're waiting for a color change. Red eliminates green eliminates this green one right there. Look at this violent bar. Half half. You kind of come right up to the third sucker play. Boom. It's crazy. I do a lot of these um crash plays, guys. A lot of them.

Now, I want you to take a look at Tesla. A lot of my traders had this play. I want you to look at this is the 25th. All right? This was the 24th. This is the start of the 25th. Now, I want you to look at the pullback here. Now, I told you that one of the keys to mastery is knowing is the pullback in this play viable? Is it a gift to add or initiate a play or get more, or is it a problematic drop? And I'm willing I'm going to tell you that. Remember the characteristics. If it's straight down like that, it's not. If it's a drift and it stays in the upper half, preferably the upper third, you're good. Now, some people say, "Well, Oliver, in this play, this drop, it's a 45-degree angle, but it's deep in the run-up." No, it's not because I teach my traders, you must fill in the gap.

When your stock gaps, I want you to fill in the gap and make that gap part of the move. You see, if the market were not closed, it would not have gapped. It would have traded there. So it's only gapping because the antiquated equity market is still closed. It's not 24 hours. So all of the builtup demand over the over the night just gets immediately priced in at the open. But if the market was open, it would have traded there. So I want you to fill it in as if it's part of the move, right from yesterday's close. Fill it in as if it traded there.

Now take this whole move and split it in half in thirds. Voila. Color change, baby. But you got that. Fill in your gaps, guys. You got it. You got it. Fill in those gaps and then do your division. This is going to work like freaking magic for you. I promise you the light with which you see everything now is going to be brighter with these concepts. You must keep coming back to this presentation as well so that you don't lose it. But I'm telling you guys, take you to a brand new galaxy.

All right, this was Nvidia. This was a play of ours. This is a play of mine, right? This is easy money. Now, this is on the 22nd. Now, find the crash bar. It's not hard. I know you can find it. It's the first bar on the 22nd. See the crash bar. What are you supposed to do with a crash bar? Divide it in half and third. Half and third. Now, I want you to see the bounce. Look at the bounce the next bar into the crash bar. So, we bounce up because guys, remember this is not there. None of this is there yet. So, what's happening here, guys, is that you've got the first bar as a crash bar. Now, the next bar is moving up into my zones. So, I got zone the first zone is achieved. The second zone is achieved. Now, I'm shorting there. I'm more advanced. So, I'm just going to short in those zones. I'm not waiting for anything. So, I'm short short. I'm coming in here. Boom. Boom. I'm shorting because what's the odds of it going all the way? 15%. I'm going to be right shorting in those zones 85% of the time. I'll have some stopouts every now and then, but not very often.

Now, what you can do is you're supposed to wait for the green to disappear and then strike. So, when does green disappear? It disappears. Now, watch. Boom. Uh-oh. Most of the green is gone. Boom. All of the green is gone. Well, I did the wrong thing here. All of the green is gone right there. I don't know if you can see that. It was green first, but right here, I'm going to draw this line here. This was green. We were green first. Green. Green. Green. Green. Green. And then the green disappeared. Boom. A lot of my traders strike right there. Bam. My green disappeared. Stop above the high and the freaking rest is history for me. This was like a $9,000 play. So, crash play, bounce, drop. Some traders did another color. Some traders of mine did another color change here. Some of my traders said, "Well, Oliver, this is a crash bar, too. We got two back-to-back crash bars." And look at the bounce. Sucker bounce and boom, back-to-back crash bars. Powerful.

How do you know that this is likely the bottom? Oh, that should be simple. You're multiple legs down. I know this is from yesterday. 1, 2, 3 finger spread. The move did start the day before. 1, 2, 3 remember it's three to five legs. So we've got two of the four criteria telling us this is likely the bottom at least for now. Remember it works this the other way as well. Same thing guys remember what I told you what to do with the gap. So look on the 24th Amazon is gapping up right? Fill the gap in guys. Always fill your gaps in. All right? Fill them in as if it didn't gap there. That it traded there. Fill the gap in. That's your full move.

I want you to look at the pauses. And guys, even this is a pause. It's a hidden pause. My traders know this is a hidden pause cuz you fell back so hard. That's still considered red. So, it doesn't matter if you got that or not. But there's you all you know is that there are multiple legs up, right? You got multiple legs up to the upside. Three to five legs up with your your separators. Do you have the three finger spread? Yes. Look at all that space between the three items. Tippy top of your stop 2020. Three-finger spread. You're wide apart. That's why I call it a three-finger spread. What are you supposed to do when you have a full move and it starts to drop? What do you do? Go all the way. Fill in the gap. You split it in half and thirds. If you try to profit on the downside on the first color change here, that's fine. But remember how many levels I told you to go for? Go for two levels. So level one, level two inside of this. You understand? That's how we come up with targets. We go for level one and level two. We don't count the top one. The top one is the entry level and then you go for one level down, two levels down. And it's trading by the numbers this way, guys. Really makes your approach very systematic, far more precise. But if you wanted to short here, remember you're shorting on from this three-finger spread point. If you want to short, we don't get a violent bar up here, but we do get a color change where you can give it a shot. When does red truly take out a green bar and right in this area? Anywhere there is is is fine. Anywhere here is fine. Two levels down. Boom. Boom. Don't forget to div do your trading division on everything, guys. Everything big. Do the trading division.

Look at Palunteer on the 25th. Now look at the gap. See the gap? What are you supposed to do with that? Fill it in. Fill in your gaps, guys. Let's act like they really traded there. Now, look at that big giant runup. Split it in half in thirds and voila. Boom. 80% chance of a new high. The pullback stayed basically in the top third. This is going to have you seeing so many things much clearer. My traders know this as a clearing collapse play, right? So, what is clearing? Let's say your stock is doing this. It's kind of in this range here. And then all of a sudden, a red bar just clears everything. Boom. It just breaks through everything. That's clearing. I want you to take a look at this. Look at the clearing. You see it? Then boom. Solid red just clears everything to the downside. Sucker bounce. You do get to the top third, but a sucker bounce here. You get the sucker bounce into the collapse. Color change right here. Boom. And traders can just keep doing the color changes if they're near something. Color change here. Boom. Color change. Boom. It just keeps going and going and going. This crash play and the sucker bounce is a huge money maker for us.

All right, Coinbase. Remember I told you you can crash into support, too? Look at your support from the day before, but you gap and you crap out and collapse right into support. And you get that miniature sucker play bounce right here. Bounce. That's the micro version. And you drop to new lows. Now, these don't look like big drops, but these are big drops. That's like $5 drop right there. Even on a macro level. Remember I told you take your your full moves down and also do your division. So here's the full move down. I'm drawing sloppy here, but you get the point. And even it couldn't even break any decent amount to the upside after a collapse like that. You have to remember guys, there are people who bought here not knowing how to trade and play. And these people are left holding the bag and they're not happy. They're sad. They're like they're stuck up here sad. So they're instantly a loser. So any bounce they're like I got part of my profits back and they just sell into the bounce to get at least some of their profits back. Boom. That's why this these crash plays work. You're getting a lot of pressure from people that are hurt from above and the bounce is a gift for them to just get out. So, they're applying a lot of get out pressure on the stock. That's why there's 15% odds of coming back. It's all about trading people, guys. All about trading people.

This is another play, guys. I'll be honest with you. I got a tiny bit nervous with this this one. I think this is the last one to show you. I got a tiny bit nervous with this, guys. Just a tiny bit. Because remember, when I get these hard drops like this, I split in half and thirds and I'm already going to be shorting in these zones. Now, you won't you're going to wait for the color change, but I don't wait for the color change. So, this bounces and I start getting short short more and my stop is here. So, I'm like, but now my orders are there in advance. I I start to say like, wow, this is a strong bounce. It's trying to get into that upper portion. Then the collapse came. Love that sound. And then we took this color change. My traders can tell you. So this was more like the macro one. Drop. Drop. Boom. Profits. Then bounce. This is a sucker play, too. Why is this a sucker play? Because remember guys, don't forget the macro move down is the whole thing. And when you know how to divide, this is sucker two. Boom. This is the closest thing to kind of taking candy from a baby guys in the market. The the the bounces into crash drops. It's powerful. It's consistent. It's freaking highly profitable.

Look at the crash play in Hood. You gapped. You crashed into support. Now look at that 200 there. It it tried to hold on but the crash was so strong that the 200 is weakened. But look more importantly is look at the sucker bounce into the crash. You see the sucker bounce and the rest is history. It took a while though that 200 tried to hold on and eventually gave through because the ice was cracked by this. The ice was cracked and each subsequent tap on the 200 just weakened it more. Boom. It just finally gave through. The ice finally gave through. And it all started from this sledgehammer coming into the ice.

All right, guys. I told you we don't trade Bitcoin, but if I did, I would use the hourly chart. And you see all the concepts here. Leg up, stay in the top third. We're going higher. Leg up. Stay in the top third. We're going higher. Leg up. Stay in the top third. We're going higher. You see? Boom. One, two, three, four. You're pretty wide here. You need to rest. But now look, the macro move as well needs to be split. And we stay in the top third. Do the macro rest. We're going higher. Now we get the full three-finger spread and that's when you have to sell off. You didn't really quite get it here as dramatic as you would like. That's still more like parallel railroad tracks, but when you start to go vertical, you see you started to go vertical here and into a three-finger spread. You just got to come down and rest. You have to. And that's exactly what happened.

That these three concepts I shared with you today, they're going to pay dividends to you forever. They don't stop working. They're going to pay dividends forever for the rest of your living days as a market player. I have been using these for for for three plus decades. They are just as reliable today as back in the 1990s, as back in the early 2000s. Do you understand? Powerful. And I hope these things also show that you don't have to be overly complex to really play the market successfully. In fact, the simpler your approach, the more powerful it is. Complexity weakens the power. I shared nothing that a 12-year-old can't identify and know. Anyone can do this. I know there's a high failure rate, but it's a high failure rate because of lack of knowledge, lack of understanding, lack of guidance, lack of the proper mentorship. I want to be that for you. And also lack of the proper amount of money. That's a big one. And so I try to help traders know the right thing. I try to transfer all of my knowledge to the traders and also give them the proper amount of capital to do it with and give them the constant day-to-day training every single day and have them grow every single day in knowledge, awareness, understanding, and have the right amount of capital at their disposal to take advantage of them so they're not risking their own family's money.

No one on Wall Street does that. No one who gets hired out of school to go work for Goldman Sachs or JP Morgan or whatever on the trading desk. They're not trading their families money. And this is a huge advantage they have. They're also under guidance. No one's saying, "Oh, here's $50 million. Go knock yourself out." They've got guidance. They've got a head trader overlooking them. They're being taught. They're not trading their own capital. Do you realize that you are better when it's not your money? Everyone is better when it's not their capital because you're held to a higher standard. You're you're more stupid with your money. You're more careless with your money. But if you know I'm watching, if you know Goldman Sachs is watching your performance, you're going to be on point. This is why billionaires form hedge funds. Because they need the money? No. Because they're even held to a higher standard. These billionaire hedge fund managers are held to a higher standard because other people's money is mixed in with their money. They're better. It's one of the secrets on Wall Street.

Guys, I want to show you here. I want to I want to tell you something. Some of you may have seen my talk on this. I have not raised prices on any of my services, any of my trainings for eight years, guys. I had team members, my my team begged me for a a number of years, Oliver, we have to raise prices. We're too low. Look at everyone else in the industry. And I said, no, I want the barrier to entry as low as possible. Oliver, prices are going up for everything from employees to this to that, but that doubling on us, tripling on us. Nope. I refused it for eight years. You can go back and see my pricing eight years the same. But I can't do it anymore. I can't. So August 3rd, all of my prices double. I have to do it, guys. I've held off for eight years. Everything you see is going to double. And I'm still going to be one of the most reasonable training operations in this space. But they're doubling August 3rd. So, you have a very unique opportunity.

What I decided to do since I'm going to be doubling pricing here, right? I decided to fast forward Black Friday because I know a lot of people out there wait for the biggest sale of the year that I do, which is on Black Friday, which happens in late November, right? But I decided to I'm going to fast forward and do a midyear Black Friday to give everyone the final opportunity to not only get into any one of my programs, my trainings for the regular price, but I'm going to slash prices on the regular prices up to 70% to get them in before I double pricing on August 3rd. And I'm doubling it. Mark my words. So, if the next Black Friday will be sales off the doubled pricing, this is Black Friday discounts off of the normal pricing I've maintained for eight years. This is your last chance to ever start this professional journey to be with me at these prices. You will never see them again after April 3rd. I'm taking prices down deep from 2500 on the complete trader program to $9.97. The this is the most popular program, complete trader package, right? You get every you get almost everything here from training every single day, access to our live trading room where you're with with our traders, you're with head traders that are guiding you, you're doing trades together, you're making money together, you're getting corrected, you're getting analyzed, um you're getting you get full funding for the rest of your trading career, right? You never have to put money into the market if you don't want to yourself. All right. Um 4,000 you get my live trading camp which by itself is a $1,500 value. So in the complete trader program, this is an 11-week program and this is a for life program. This is for life. None of this does not have an expiration date. You are you are trained every single day for the rest of your life. For the rest of my life. All right. Um 1497, guys. It's a It's a big It's one big family dinner with decent bottles of wine and you're done. Think about that. What I shared with you today is worth more than this. Because those three concepts I shared with you today will pay dividends for the rest of your life. and they will yield $1,400 in a trade in a single trade in a single day in a single week. What I shared with you today blows this out of the water. We're talking about a lifetime program for life. All right, this is giving it away, guys. All right, your opportunity is up until August 3rd. So, you have guys black midyear Black Friday sale until August 3rd. You'll get the full package. You'll get the 60% payout on your profits. And you'll have lifetime access to the academy. You just won't get the mentor me. And you won't get the one full week of mentorship with me, okay? But it's still a phenomenal package. So, don't feel bad if you can't hit the button in the first hour. It's still the same price and it's still very powerful.

I want to make sure that you are dealing with one of my staff members, one of my advisors. There are a lot of people out there that's going to try to maybe trick you into thinking that they're part of my organization and they're not. I don't want you falling for these things. So, make sure it's one of these people. Make sure it's this number, these email addresses, or what have you that you're dealing with. All right? There's a lot of nonsense that goes on to try to take people's money in a dishonest way. And it breaks my heart when this happens. So, please don't let it happen to you. I'm giving you the the only people that represent me. No one else. All right? Okay. So, take a snapshot of that or come back to the presentation at one point.

Guys, you can do this. Nothing I explained today is rocket science. And yet it's still elite stuff, elite knowledge, elite levels. Give give yourself this gift. Give yourself the gift of trading. Let's do this together. Let's walk this journey side by side every step of the way, every single day. I promise you, I will not allow you to fall. We will do this together. You can do this.

Now, I want to thank you all guys for um I want to thank you for showing up. I want to thank you for staying as long as you did. I want to thank you for your attention. I promised you that I would do my very best to blow your mind today. I hope I've delivered in some small measure on that promise. I know there are a lot of things you could be doing right now. You could be in the mall walking your dog around the block, playing with your kids. I don't know whatever you it is that you do at this time on a Saturday you could be doing but you were here with me and that's something that I do not ever take for granted. So I thank you so very much for being here. Thank you for subscribing to the channel. Thank you for liking all the videos guys. Thank you for your loyalty. Thank you for your attention. Thank you for everything. All right. I'm looking forward to a number of you joining the family. And so I will say in advance, welcome to the family. All right, guys. Boom. Boom. Love you.