This is the trading playbook where the
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Hello everyone, Lawton here with
Verified Investing back with another
episode of the Trading Playbook. I hope
you guys enjoyed yesterday's episode and
I hope that you were all having a
wonderful
Sunday.
Uh before I go any further, please like
this video and uh subscribe
to the Verified Investing YouTube
channel. It would really really help us
out. And leave a comment down below of
what you want me to cover next. Again,
everyone types cover this chart or that
chart.
>> [snorts]
>> I'm not looking to take a look at
specific charts, rather I'm looking at
overall themes that will be helpful for
your education because it's one thing
for me to go through and you give me a
chart and I give you, well, this is
support and this is resistance, right?
But
it's another thing for me to go
and explain how I find these levels,
teach you about different factors that
are going to be very important so you
can do it by yourself. Instead of
fishing for you, teaching you how to
fish, if you will. Uh but anyways, guys,
I hope you enjoy this episode and don't
forget the Million Dollar Long-Term
Investor with myself and Gareth Soloway
is now available uh to purchase. Uh go
ahead and scan this QR code down below
if you want to join us as we embark on
long-term investing. But with that being
said, let's hop back into it and talk
about this week's plays.
And we're going to start off exactly
where we left off last time on the
Bitcoin chart, right? And what did I say
last time? There's a beautiful
inverse head and shoulders pattern,
guys. And this is going to be plan A.
So, before I do it myself, right? We're
going to do a little quiz.
How do you find the measured move of
this inverse head and shoulders pattern
on Bitcoin?
You can pause the video here, try and do
it yourself, right?
And then I'm going to show you how to do
it.
Got it?
Okay.
So, for me,
the way
to find that is you saw I picked the
very bottom, right? This is the top of
the head, right? Because it's upside
down, you're going to use the bottom on
a head and shoulders pattern to the top.
But you're going to do the very very tip
of the head
to that neckline, and then you're going
to drag
that
trend line
to
the neckline where we broke the inverse
or regular
head and shoulders pattern,
right?
So, the measured move would take us up
to around 107.5, basically to this
beautiful high pivot from the 10th of
November. That is
um
where it could go. Of course, you're
going to find a resistance around along
the way closer to $100,000.
But for our trade this week, guys,
should Bitcoin come back in and retest
retest this neckline that it broke up
explosively and out of, guys,
that's where the long entry will be to
buy Bitcoin on a retrace to the neckline
of that inverse head and shoulders
pattern looking for a move up
>> [snorts]
>> closer to that 98,000
dollars and then potentially above 100
towards that 107 level.
Just remember guys, and this is super
important to know, I'm charting this on
the daily chart.
Which means it could take a couple days
to play out. We saw how long, right?
We're taking a look at this. How long
did it take for this pattern to be
created? This pattern was created over
the course of 200 and 41 days since the
beginning of the year, right? So, it's
not going to play out in 3 days, but
could it play out in 20 30 days?
Absolutely.
So, that's what I'm watching first.
Next one here is JPM.
Now, do you see the pattern?
Head and shoulders pattern?
Cuz this is going to be plan B.
Well, there is a very clear, right? Head
and shoulders pattern that has not
formed yet.
But is potentially forming here, and
that's why I like it so much, right?
You have this nice pattern here. Now,
the right shoulder needs to come down,
but should it come down this coming
week? I think it's a good short.
Additionally,
we can look historically at how JPM has
reacted to head and shoulders patterns
by using this one, right?
There was a beautiful head and shoulders
pattern here.
If we go ahead and take
this head to the neckline,
that's a measured move. That's 5.6% and
you can see that JPM ended up coming
down fulfilling that head and shoulders
move measured move and even going
slightly lower.
So, we have to do the same with this
head and shoulders pattern.
Where
is the measured move leading to
on this head and shoulders pattern
potentially on JPM. Now, the question
The thing is that it depends on where
ultimately ends up breaking. But, let's
say it ends up breaking here, well, that
measured move could be a move down about
10% 10 and 1/2% and you know where that
lines up
perfectly to this beautiful gap fill
from the 3rd of June.
I always love when my targets also have
a level resistance or support there, so
I know that's generally an area that I
got two factors. That makes me feel
better about the trade. Um it makes me
feel like it could really go there. So,
the second trade, my second plan
second play
is JPM short at the break of the
neckline or
or on a retrace back to the neckline
after it falls.
Just like Bitcoin broke out, we're
playing the retrace. You can play JPM
the same way on a break
or on a retrace.
And then finally
on UNH
you're looking at a beautiful head and
shoulders pattern that did break
but is looking to potentially retrace.
Okay, potentially retrace.
Right?
You see boom, left shoulder
head, right shoulder, fell, and now is
perking up a little bit creating an
amazing opportunity
to potentially short this.
One thing we're able to do if we go
ahead and take this measured move, what
was that measured move? A move all the
way down here. And for me generally, if
the play has gone, you know,
40-ish percent of the measured move, I
consider it done. But, because it's only
gone down maybe 20, 15% of the measured
move, now as a retracing, we could be
poised for an additional move lower on
United Healthcare Group.
So, my entry would be a re-short at the
retrace, a full retrace to
this neckline. This is plan C.
And
my target on this,
couple levels of support you'll have to
look at.
First off, nice pivot low here at 346.
And a gap fill from earnings, the
earnings at April 20th, right? At
323.56. Two basically earnings plays
right here.
Right? The level that was prior to
earnings and the lowest point it got
since reporting those incredible
earnings that popped it up all the way
back in April.
So, this is going to be my play on UNH.
And those are my three plays today,
guys. Thank you guys so much for tuning
in. Again, my name is Lawton How here at
Verified Investing.
Guys, please like this video, subscribe
to the Verified Investing YouTube
channel, and leave a comment down below.
I I'm serious, guys. I read each and
every single comment, even if I don't
respond to them.
I seriously read all of the comments,
and it really inspires me to continue to
create this content. And also gives me
ideas for what we could cover next. And
before I go, I just like to take a
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But, anyways, guys, with that being
said, that's all I have for you today.
Thank you guys so much for tuning in.
Thanks for being part of the community,
and I'll see you guys next week on The
Trading Playbook. Have a great rest of
your weekend, guys. Bye-bye.
That's The Trading Playbook. Today's
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