Introduction

Welcome to the first video in a series of videos designed to help you maximize your profit potential, by finding the very best v-bottom or v-top patterns, using the Stock Volatility Box Platform.

My goal throughout this series is to share some of my favorite setups, some of my favorite ways to use the platform, but more importantly how to start thinking about the Volatility Box levels as an instant framework for price and volatility.

Once you have trained your mind to do that, you will find you can integrate just about any setup, and use the Volatility Box to find hidden (statistically-relevant) levels in your favorite markets.

 

What is the V-Shaped Reversal Chart Pattern?

The V-Shaped Reversal chart pattern is a technical analysis setup that looks for buying opportunities when the market dips, and selling opportunities when the market rallies.

This setup is often found in stocks that are trending, as it requires a pre-existing trend to be in place for the "v" that is formed to make it onto our watchlist.

You can find v-shaped chart patterns everywhere, but the most common one for our eyes to recognize is the V-Bottom chart pattern (ie. the v-shaped pattern for long setups, aka buy the dip).

Here's an example of a V-Bottom in XLNX, which led to a nearly +2% reversal move, in less than an hour:

This chart pattern usually leads to some of the best setups, that you find yourself wishing you had "spotted the entry when it had setup."

And, in this video series, I'll lay out the exact 3-step process that I use to find high-probability v-bottom and v-top chart patterns that are setting up, and how to trade them effectively.

This setup, when detected early in a trend, combined with increased volatility levels, can lead to some incredible reversals, in which the risk to reward is skewed in your favor (more about this in Modules 3, 4, and 5).

I think you'll find that regardless of where you are in your trading journey, this setup is:

• Easy to follow with clear entry, stop, and exit rules
• Effective in finding v-shaped reversals taking place intraday
• Powerful way to grow accounts for day and swing traders (and small-account friendly)

I've done my best to lay this course out in a beginner-friendly format, while still providing in-depth information where relevant. If you have any questions, please send us a message and we're happy to help.

 

Why This Setup is Useful for Day and Swing Traders?

For the first setup in this video series, I'll be breaking down the v-shaped reversal setup. I've added a nice little twist to it that helps us find some of the best v-bottoms and v-tops, intraday (and every single day).

This is useful for both day and swing traders.

For day traders, it helps us find some of the nicest entry points where the risk to reward is skewed in your favor. It also lets us get risk in and out, and gives us more focused trade opportunities in the "best of the best" from the Live Scanner.

For swing traders, it helps us find ideal entry points on longer time frame charts (the ones that you look back and wish you would have entered). As we go through the setup criteria, you'll learn that trends from longer time frame charts are very much a key criteria for this setup.

We have even built an entire tool, the Trend Confirmation indicator, dedicated to making this process as streamlined, and efficient as possible.

 

Download Links

For those of you wanting to follow along as we go through the entire series of videos, you can find a copy of my shared workspace with ALL the indicators we'll talk about on the Stock Volatility Box Insights page.

From there, you can download:

• 1-minute chart indicators, workspace, and all downloads
• 3-minute chart indicators, workspace, and all downloads
• Setup checklists for entry and exits (which you can print out)
• Full PDF of this presentation

 

Everything We'll Discuss

Over the course of the video series for the fade setup, here's everything we're going to discuss:

1. Introduction (Module 1) - That's this video :-).
2. Setup Overview (Module 2) - The first thing we're going to do is break down a bit more about the setup at a high level. I'll share that twist that I've added, which should give you a better understanding of how the setup works. The goal of this section is to build the (required) confidence to trust this setup, whenever it triggers.
3. Entry Criteria (Module 3) - In the third section, I'll show you the exact entry criteria that we are looking for, with our setups. This is broken down in a checklist format, where the setup has either met our rules, or it hasn't. There is no room for question.
4. Stop Loss (Module 4) - In the fourth section, I'll demonstrate a few different approaches to setting stops for this setup. This will include stops for both day traders, along with swing traders.
5. Target Zones (Module 5) - In the fifth section, I'll share first and target zones for this setup. While the first target is a little more "rigid," the second target allows you flexibility to manage the trade how you'd like. The goal, in both cases, is to take profits off the table.
6. Chart Setup and Ideal Workspace (Module 6) - In the sixth section, I'll walk you through my favorite chart layout for this setup. I use a 1-min and a 3-min chart, side by side, and I've shared the entire workspace (with all of the indicators loaded on) for our Volatility Box members. The goal of our chart setup is to streamline the entry process, and make it easier to see what you're looking for in an ideal trade setup.
7. Chart Examples (Module 7) - In the seventh section, I'll show some chart examples of some real life trading setups. The goal of this section is to walk you through what an ideal trade setup looks like in practice. We're not looking for perfection here; we're looking for the best opportunities that the Live Scanner gives us. This should help train your eyes, and familiarize yourself to recognize the fade setup whenever it presents itself.

 

Stock Volatility Box Onboarding Video

For all new Stock Volatility Box members, I would start by watching the onboarding video, prior to going through this video series.

 

The onboarding video walks through some of the platform basics and fundamentals, including:

• How to generate an indicator
• How to view the Volatility Box levels on your charts
• How to use the Live Scanner
• When to use the Volatility Box Dashboard

And more!

Feel free to send us an email, if you have any questions, and we're here to help.

With that, let's move on to the second module of the course, in which we will break down the logic associated with finding the "best" v-shaped" chart patterns.