The One Thing I Watch That Tells Me Who Controls the Chart

Here's the rule I trade by, and pay attention to this one because it's the opposite of what feels right. We want to be the momentum, not enter on the momentum.

By the time a move is obvious enough that you want in, the people who are going to make money on it are already sitting there positioned.

You're not catching the move, you're the person they sell it to.

So when one of my positions gets a big boost, that's me taking the money, not adding to it. And when something I want is getting hit, that's usually where I'm looking to get in.

Does that make sense?

Now here's how you know whether a level is worth getting in at.

Anybody can draw a line on a chart. The line was never the hard part. Knowing whether somebody is defending it, is how we get paid.

Watch the wicks.

When price comes down to your level and just slices through it, nobody was there. Your line was decoration.

But when price comes down and leaves a wick, somebody stepped in. It went down there, it got bought, it closed back up, and that happened with real money.

Here's what's going on underneath. The buyers who like this thing average in, you get your initial bounce, then some of them take profits or roll, price comes back down, and they go into the well again.

Every one of those trips leaves a wick at the bottom.

More wicks means more buyers defending it.

So who's in control there? The buyers are, and I'm still in that position even though it's showing red right now, because the wicks are telling me people are defending and nothing has happened to tell me otherwise.

A lot of people who don't know what they're doing won't touch a stock down there. It's red, it looks scary, they want to wait for it to prove itself first.

The big guys are buying it right there.

So you're getting it at a cheap price, at a nice point, and you're on the team you want with them on your side.

All right, homework, and I want you to do this one.

Pick something you own or something you've been watching. Find the level it keeps bouncing off. Then watch what happens every single time price gets back down there this week.

Wicks mean somebody's home. No wicks and it slides right through means nobody is, and you can stop pretending that line means anything.

That's the whole exercise, guys. Costs you nothing but paying attention.

Rock On,

Voz

P.S. If you want to trade all of this live with me… the levels, the wicks, the actual entries in real time… your first month is on us. Come trade alongside me and see what it feels like before you decide anything.

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