00:00welcome back to another exciting episode
00:03of charts from the kitchen including
00:09GameStop this is that
00:12chart number of different ways of
00:14looking at this you'll have heard all of
00:18sure but let's focus on 4-Hour time
00:22frame and what could be described as a
00:25tightening wedge so you got this
00:27downward sloping resistance across the
00:30you've got this downward slope and
00:32support line underneath price action and
00:35they converge to a point the Apex of
00:39that formation is where we've seen this
00:41break that break is to the top side and
00:43the measured move from the widest part
00:46wedge from this point is in it around
00:50that Target three we've got at $45 where
00:53we think GameStop will get to eventually
00:55do we see it getting there now well
00:56there's a number of reasons why that
01:00entirety of that measure rule might not
01:02work one of which not least of which is
01:06the fact that there's previous price
01:07action highs here right where we're
01:11leaving you see this area this is the
01:14first area where you'd find a fake out
01:16so if it goes no further than that there
01:18would be a reason for it what a lot of
01:21people don't know about these formations
01:23and what's very common is when you find
01:24this resistance line in line with a fake
01:28out Zone like this and one other issue
01:33is true of the formation then it's a
01:35little bit dubious as to whether it's
01:37going to work out especially whether
01:39you're going to get the full measured
01:43factor to pay attention to is these
01:47levels of support those that were first
01:51relevant to that downward sloping
01:53support line they are still resistant so
01:56price action despite having broken out
01:58of the wedge is lower than that fish
02:00Touch of support within it so it would
02:03be possible to describe this sort of the
02:05angle on this wedge as being not
02:08particularly conducive to the most
02:11scenario based on the probabilities
02:13nothing else though we do have these
02:15targets to the top side one coming in
02:18around those levels that
02:212122 it's definitely a strong Target up
02:24there definitely a strong Target at the
02:26early time frame zoom in here make
02:33you poor folks yes yes poor folks yes
02:36I've got the dentist you see got the
02:38dentist so I'm hoping RoR and kitty will
02:41come back and step in for just a short
02:44period of time so I can get a little bit
02:46of work done and um then I I'll come
02:50back obviously you know I'll come back
02:55regularly H so here we have this
02:57breakout inverted Head and Shoulders
02:58price actually mooving to the top side
03:00we drew a a diamond pattern on price
03:03action here part of the previous
03:05broadening formation the break to the
03:08bottom the return to that formation how
03:10that often ends up being a diamond you
03:13could look at it as such or you could
03:15obviously draw it like
03:17this part of it draw being drawn like
03:20this takes on added credibility if you
03:23were to for example go up to the Daily
03:25time frame and talk about not just the
03:27wedge but the fact that it's within this
03:30grander pattern of a downward sloping
03:33Channel now that hasn't broken yet that
03:37has not broken to the top St yet be very
03:39very clear on that that there is touches
03:43in here one another here two and this is
03:49the third touch which gives validity to
03:51that trend line not only has it not been
03:53broken it's only just been confirmed and
03:55in that confirmation we know it to be
03:57real so price action has hasn't broken
04:00that yet it's also true to say that if
04:02it persists here and doesn't break it
04:05then you would anticipate coming in test
04:07in the support line within that channel
04:09of which there's been two three four
04:12touches before okay now we did enter
04:15that tightening wedge as described at
04:18the top of the show but it's still true
04:20to say that this is real down here 1618
04:24$676 that's very real and ahead of that
04:27you've got the midpoint of this channel
04:311039 and if it is that price action
04:34doesn't manage to break back above
04:35Target one here on a successful
04:39breakout it's not even broken out of the
04:41channel yet and comes back down and
04:43breaks below the 236 at
04:471594 doesn't hold the 50% retracement at
04:511356 then it'll test the bottom side of
04:54that diamond formation if that breaks
04:56and it may well persist in support at
04:59those levels for a while cuz there's
05:00important areas there and if that breaks
05:03then price action will come down test
05:051039 and it might even not hold there go
05:08all the way down and and test this area
05:10in around 9 spot 69 to 9 spot
05:1377 and that would be ahead of another
05:17breakdown to test the ultimate support
05:2176 so these are realistic
05:24truths uh there's a high probability of
05:27that happening if price action does
05:29doesn't managed to do better than it has
05:31done and what it has done is already
05:35quite a lot so asking more from it from
05:38here would perhaps be asking for too
05:41much you know that move up that's quite
05:44quite strong already to be asking for
05:46more there's areas and things about this
05:49formation that some people
05:51will suggest as being true for example
05:55on this move if you take it as a bull
05:57flag and you would measure from the low
06:00bottom of the pole up to the high here
06:02you can see there's a 236 this 236
06:05defines the support area on that flag
06:08and suggest this a high and tight bull
06:09flag which would be the best kind
06:11downward sloping resistance which forms
06:13the pen in at the top side and then
06:15you've got measured moves from within
06:17that penon this would Define the break
06:21at the first break actually you've got
06:23so far all all good and secondly you'd
06:26look at the full measured move from from
06:30the flag itself which would take from
06:31the bottom of the pole drop that on the
06:34top side that's the Fibonacci get back
06:40buddy okay don't need you anymore anyway
06:43so then we drop that on top side where
06:44the breakout comes from and look at that
06:46tiure up at around 26 bucks so we got up
06:49at around 26 bucks go back up to the 4
06:51time frame got this target you see these
06:54numbers move around every time I go to
06:57different time frames
06:59anyway here it is this is Target two
07:01right and you can look left you can see
07:03why that is because if you break the
07:05first horizontal level of support
07:07outside the channel you come in and test
07:09the next one right so that all makes
07:11sense it does add up and if price action
07:13breaks to the top side that would be the
07:14narrative people later looked back on
07:16and said bro it was so obvious bro Etc I
07:22people so that makes sense right it's
07:25not the full measured move from the
07:26wedge but like has to start somewhere
07:29doesn't it right so anticipating there
07:32in $35 and GameStop that' be the next
07:34Target you see makes sense because if
07:36you break this horizontal this is the
07:38first one this is the one who just
07:40confirmed it would be reason for and
07:42then you look left from this guy got
07:44another one okay so there's another
07:46reason why GameStop might go to those
07:48levels Confluence add it all up and I'm
07:51sure I could wrap this in a little
07:53present put a bore around it and deliver
07:56it to you and I don't think anyone could
07:59be as convincing at delivering that
08:01argument as me uh anyone including
08:04anyone I've you know our friend your
08:06friend and mine RoR K I don't think even
08:08he would deliver that message with such
08:13illustrative selection of confluent
08:16factor across the chart not all
08:19criticism of them but a nod to the
08:22responsibility I have here to control
08:26that superpower of mine and that is
08:30I don't want to unduly influence your
08:33opinion just because I can draw out
08:35fantastic technicals and paint a picture
08:37on the chart the truth is there's a lot
08:39more to consider not least of which is
08:42this downward sloping Channel which
08:44price action has not yet broken out
08:47of it's not yet broken out of and there
08:50are these lower targets should break Jam
08:53stop come come back down again and you
08:56have to be cognizant of
08:58those TR button what are the chances
09:01that that's going to
09:02happen well if you're down here on the
09:044our time frame and you're looking at
09:07momentum you can see you've already come
09:09up test the top side of that
09:12resistance and pull a little bit back
09:14you know at this point the RSI and
09:18momentum are at the top of where you
09:20would likely find them on a 4-Hour
09:23oscillation and we haven't yet broken
09:25out of that channel so no definitive
09:28change in price and the momentum has
09:30taken it to the area would typically
09:33turn around at down to the 1 hour time
09:35frame and you can see that on this move
09:37to the top side price
09:39action having put in a higher high and
09:43followed the initial measure rule from
09:46pennant the RSI is failing to break
09:49above previous highs
09:51so less people perhaps taking it to this
09:55Zone and that paints a picture of
10:00so come on over Valerie this Divergent
10:03if that's Divergent on the 1 hour on
10:044our time frame if it fails here what
10:07does that equal not along simply
10:10Divergent it'll be a failure swing that
10:13would mean price would be at the top of
10:14the range and will be coming down to
10:16express the full level of it in the next
10:19oscillation which you know from the
10:22drawings and the top of the TA what that
10:26means so I'm not going to do those
10:29know I've got a better idea my
10:33proposition to you is
10:36that rather than get excited about
10:39stupid ass about someone liking a
10:43tweet why don't you do the work put in
10:46the effort and join other people who do
10:48the same thing on my Discord
10:53discord.gg Roop I say mine but I share
10:56it with thousands of other Traders
11:00who I put thousands of hours into making
11:04as good as I possibly can and on that
11:08note have you seen this video about two
11:11Traders and one cup it's highly
11:14recommended I'm going to link to it here
11:16and I suggest you watch it immediately
11:19hit the like button and then watch that
