hat’s up, VWAPians!
The Fractal Assassin, 8-Baller here….
I hope everyone has had a nice weekend.
It was great hanging out with the Warlock and all the Money Morning LIVE crew in Baltimore.
We’ve got some crazy things under development…but I can’t quite share the details just yet.
Of course Warlock’s World members will be the VERY FIRST to know…yet another reason to join the best live trading room on the planet.
What I CAN share with you is just a few of the types of things that I’m looking for on charts every day.
Whether it’s during my sessions in the big room or during the Daily Decode in Warlock’s World, I’m constantly reminding traders to PAY ATTENTION.
Even though I’m slowing things down compared to the Warlock, I realize now that some VWAPians could use some references to look back on.
So I wanted to share some of my most mentioned charting techniques.
I couldn’t call myself the Fractal Assassin without starting off with my fractal based charting, right?
On candlestick charts, fractals are a widening pattern.
This pattern provides a range of buying and selling and, in addition to price action, can give an idea of where a stock might go.
Fractal on MVIS 1-minute chart
A fractal is an isosceles triangle. I draw them using two trend lines – one up, one down – that are defined by the touch method.
The touch method is when a trend line touches the top or bottom of multiple candles in a row or near each other.
These trend lines can provide points of support and resistance.
When this support or resistance is broken, I call it a range break.
Range break on MVIS
On the chart above, the red trend line follows the tops of the candles in a downward trend.
This is an example of the touch method – the tops of the candles touch touch touch and then finally, at the bottom of the trend, a green candle breaks the range.
Often, this can signal a reversal, or change in direction of price action. This presents trading opportunities.
When I enter Warlock’s World, it’s usually at the time of day when most institutional guys are out to lunch or catching an early afternoon cocktail.
Stocks can trade relatively flat, or sideways during this time, of course there’s always exceptions, like when I charted Inspirato (ISPO) from $66 to $108 in real time.
I define ranges as stocks having balance.
This is the fight between bulls and bears to see which direction the stock is going in the near term.
Take this chart of IGM Biosciences (IGMS) for example.
Multiple instances of balance in IGMS
IGMS was trading in a relatively wide range before that big red candle to the downside.
Then, IGMS was trading in balance, or in a range, again. I defined this with my red lines.
A series of red candles followed, although not as big as the first range break candle.
Next thing you know, IGMS is trading in a range again.
It’s crucial to continue to work every trade.
And in Warlock’s World, we want to make sure that you are armed with as many tools as we can give for you to succeed.
So not only do I break down Kenny’s trades and share my charting ideas and system, but I also dig into both the basics and the nuances of how to trade VWAP.
Sometimes we gotta take it back to basics
I’ve found that getting back to the core of what Kenny teaches about trading VWAP is important for our constant inflow of newbies and the seasoned VWAP veterans.
I also enjoy engaging with the Warlock’s World community, taking chart requests and helping YOU define YOUR trade.
I’ll get more into the specifics of my charting techniques and take a deeper dive into the world of fractals and how I draw them soon.
But for now, I wanted to make sure that not a SINGLE VWAPian feels left behind during mine or Kenny’s sessions.
Of course there’s only one place to get the MOST and HIGHEST QUALITY VWAP trading and training…
I better see you there soon.
Kenny “The Warlock” Glick
April 04 2022