Can You Spot the Pattern? Three Bollinger Band Trades

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This is the trading playbook where the
charts do the talking and every session
makes you a better trader.
Hello everybody and happy Sunday. My
name is Lot No here with Verified
Investing and welcome to the second
episode of the trading playbook. Before
we go any further, if you haven't seen
yesterday's episode, make sure to go to
the Verified Investing YouTube channel
and check it out just so you know
what I'm talking about because we're
going to give you three
awesome trade setups and a message from
a friend of the
pod.
But before we go any further, please
consider liking this video, subscribing
to the Verified Investing YouTube
channel, and leaving a comment down
below. The way that I find things to
trade including today's, um, I guess or
this weekend's topic was through the
comments. I read each and every one of
your comments, so
appreciate the comments. Keep them
coming and let's keep this going.
Um, here are this week's plays.
So, we're talking about Bollinger Bands,
right? Bollinger Bands again and just as
a refresher, Bollinger Bands are
basically this thin blue line is the 20
SMA, simple moving average. And each
band, this red one to the top and this
kind of greenish teal one to the bottom
are two standard deviations away in
either direction. Now, there's so many
different ways that you're able to use
Bollinger Bands, but for this situation,
we're looking at utilizing
W
and M patterns, right?
Now,
what I want you to do is stop right
there, take a look at the chart, and
before I go any further,
see if you can identify whether I'm
going to use a W or an M pattern here.
Should be self-explanatory, but I'll
give you a second to find it.
Okay. So, this is obviously a W pattern,
but other than just a W, it has to do a
couple more things. The first low of
that W has to hit and pierce
that bottom Bollinger band. Right? Then
it has to have a move up. And then the
second low or the second thing second W
low of the W needs to what? Not touch
the bottom Bollinger band. So, it can go
lower than the initial, but it can't go
below it. Right?
And now, when is a breakout? When is a
move confirmed? Well, we're looking for
confirmation via a close above
this first move up. So, in this case,
this is plan A.
So, plan A for this upcoming week is a
long on AXP American Express
should we see a daily close above this
uh top pivot here just around $310.
Looking for a move to the upside closer
to that maybe 328, maybe a little bit
more. Right? Using that first W setup.
All right. Let's keep on going and head
to the next one. We're going to be
talking about FANG
Fang.
So, remember what I said.
M
or W?
Now, I want you to go ahead, do the same
thing. Take a second, see if you can
identify an M pattern setup or a W
pattern setup and where it's at.
Right?
So, just like AXP,
right? Very, very simple, guys. Nice W
pattern potentially coming in here.
How do we find it? First off, we're
looking for what? A low that pierces and
goes below this bottom Bollinger Band.
Secondly, what are we looking for? A
secondary low after a push up
that does not get below this
Bollinger Band here.
And then finally, what are we looking
for?
A push above
this move for a move higher. So, my
second trade, plan B,
is a long on Fang, F A N G, on a daily
close above this 191
25.
Okay?
And the very last one we're going to be
talking about is Intel.
Now, just like with the other two,
we're looking at W patterns and M
patterns.
Now, take a second.
See if you can identify one.
And
we'll get back into it.
So, for this one, very clearly, right,
using these Bollinger Bands, is a clear
M pattern, right, potentially forming
here.
So, what does that mean? Well, that
means the opposite of that W pattern. We
had a low or a couple lows here that
touched and even pierced, right, the top
upper Bollinger Band. We then had a
retrace and pull back towards that
center Bollinger Band followed by a push
up,
a push up, kind of retracing that move.
Creating that kind of M shape, right?
Now,
just like the other two, it hasn't
triggered yet. But, a daily close below
113 84 would be the region that I would
like to look for a short. Now, Jake,
who's another trader here at Verified
Investing and has a brand new show
coming out tomorrow all about options,
he's going to explain how
to potentially trade this via options.
>> What's going on, guys? Happy Sunday.
Jake Sweeney here, trading alongside
Lawton every single day here at Verified
Investing. As he said, that play on
INTC. If you want to take that position
as it's a directional
push to the downside, a bearish read,
how would we turn this into a options
trade? So, we have a directional bet of
a downward. So, in the options world,
this is called a put. This is where
buyers would buy a put and expect INTC
to go down.
When it comes to options, though, you
have to be right about three things. You
have to be right about the direction,
the magnitude of the move, and time is
baked in. So, you have to have your
thesis play out before time expires. My
show tomorrow, The Options Conversion
Secret from Chart to Chain, where I'm
hosting with co-trader Tabby, and we're
going to be taking these chart setups,
we're going to be learning options along
the way, and then diving into the
options chain, building your confidence,
increasing your edge when it comes to
options. Every day uh Monday through
Friday at 1:00 p.m. See you guys there.
Thank you guys so much for having me on
today.
>> You already read the chart. I'll show
you how to get paid for being right.
>> He's the trader, I ask everything you're
[music] thinking.
>> I'm Jake Sweeney. I went from not
knowing what a short is to trading live
under Gareth Soloway in just [music]
under a year. I just showed up and did
the work.
>> I'm Tabby, and I'm learning in real time
right alongside you.
>> We're not changing how you read the
chart. We're changing what you do the
moment [music] you are right.
>> One chart, one concept, and one trade
every day.
>> From the chart
>> to the chain, let's get into [music] it.
>> Yeah, thank you so much for joining Dre
Jake. Jake's going to hop off now while
I go ahead and close the show. But yeah,
guys, that was the third play on Intel.
Shout out to Jake. I'm very excited to
learn just because I don't have much
experience with options, right? So,
definitely going to go ahead and tune in
there. All right, with that being said,
that's it for me today. My name is
Lawton Ho here with Verified Investing.
Please consider liking this video,
subscribing to the Verified Investing
YouTube channel, and leaving a comment
below on what you want me to cover next.
Just like Jake mentioned, his new show,
The Options Conversion Secret from Chart
to Chain with him and Tabby, is going
live every single day of the week except
for the weekend at 1:00 p.m. You can
scan that QR code down below
to learn more. With that being said,
that's all I have for you this week. I
hope you had a wonderful restful
weekend, and I can't wait to get back
into it next week. Have a great day.
Take it easy.
Bye, guys.
>> That's the trading playbook. Today's
episode was your film study, the
principle, pattern, the framework. The
application is waiting for you on
Sunday. Real setups, real levels, ready
before Monday opens. Subscribe to
Verified Investing on YouTube. Saturday
teaches, Sunday prepares, show up ready.