In this video, you were going to learn the actionable steps on how to make $100 per day by trading a three bar play I'm going to be showing you how to identify patterns where you could simply just recognize the pattern, evaluate its quality, trade it, and then profit. and then you could spend the rest of your day chasing honey badgers. And I am also going to be going over risk management because quite frankly, there is no 100% guarantee of any pattern within the stock market. But don't worry I've got your back.

We're going to go into that in this video. But I do of course want to take a moment to be straightforward. This is my personal style on a already popular strategy B3 Bar Play V3 bar reversal pattern the three bar trendline that the inside bar breakout whatever it is that you call it. This pattern has been around for quite a while and has had many variations.

When I first learned of it, it was on a channel called UK spread Betting and then I learned about it on the trading simulation YouTube channel and then quite recently it's popped up everywhere thanks to the fine folks over at live traders. But the point is, no matter what it is that you call it, no matter what variation you trade with it, it is a very popular strategy and in this video I'm going to be showing my own personal take on it my own personal style when applied to this strategy. This is the way that I see value in it and you are free to go ahead and look at different styles and figure out what works best for you. Maybe it's a combination of styles, maybe it's a different style? I Don't know, but my suggestion is to keep an open mind, test out everything you hear, and then apply it to the stock market.

But anyways, the steps in this video will help you push towards that $100 a day threshold. And once you reach $100 per day, then you can begin to scale up your efforts so that you can make more and more money by trading quality setups, by using your experience, and by getting better and identifying the pattern. While these steps on this video are simple, trading is anything but simple. Is he going to take an extensive amount of time and practice to even get to this hundred dollar threshold? But the reason that I like 100 dollars per day is because it is an attainable goal that is somewhat attainable in the near future that you could work towards.

and then once you hit that, you can scale up your efforts, it is much harder to reach 100 dollars than it is to go from $100 to $200 So I think that this $100 a day attainable goal is really a great place to start. But anyways, the only thing that I ask in return for this video is that you hit that ravishing like button and also subscribe for more short, sweet and simplified videos on how to trade the stock market. Okay, so what actually is the three-bar play? Well, let's go ahead and start from the bottom in either direction. be that upwards or downwards, we have an igniting bar, a baby bar, and a pattern confirmation bar.

This upward direction play is a strong bullish pattern because it signals an ignition and then holding and breaking of price strength, while this on the other hand is a strong bearish pattern because it signals an ignition and continuation of price weakness. But in this video, we're going to be focusing on the bullish three bar play and thus this is what we were looking for. If we are going to be attempting to identify trends upward, and it is very important that you identify these plays properly, one of the biggest mistakes that you can make is choosing an igniting bar that is small, you need to have a bar that is actually igniting. This is where a lot of people go wrong and it pretty much invalidates the whole play.

We need a big bar upwards. We do not need those pansy bars. I Understand that people get frustrated when the stock market does not provide the setup that they want, but do not compromise on these setups. If you are focusing on the three bar play, you cannot.

You cannot compromise on setups. The three bar plays simply does not have tiny igniting bars. If it is tiny that is not an igniting bar, that is a pansy bar. Friends Don't let friends trade pansy bars.

Here's some examples: Pansy Bar Igniting Bar Pansy Bar Igniting Bar Do Not trade pansy bars. This may sound repetitive, but the reason that I'm reiterating this is just because I know so many people get this confused and I really do want to hit this point home. So if you do understand this, go ahead and comment below. Charlie I Will not settle for pansy bars I Know a lot of people think this is hand-holding but it's not.

The brain doesn't remember a lot of little details and this is a very important detail. Doing something simple such as taking a moment to sit and type and pause the video, you will remember that when you're actually trading. so just simply commenting below will pay dividends in the long run. And of course, if you guys comment below, it will also reassure me that I'm not leaving you guys in the wrong direction.

But anyways, for the purest form of this play, I'd Recommend making sure your baby bar forms a level of resistance so that the pattern confirmation bar breaks above the baby bar and it can still work if it doesn't But since this video is focused on solely the three bar ploy, you should trade like a spoiled brat and only take the best setups that will make you consistent over the long run. And while I am generally not a fan of mechanical stop losses, if you are relying solely on this point, it is imperative that you set your stop loss to the bottom of the baby bar to protect yourself if the pattern is broken. I'll explain more on this later. So what does this pattern look like on the chart? Well, here we have Dpz.

We saw a Dtc create a sell-off after dipping below our Blue SMA line towards oversold. Then we saw it increased back over and display a 3 bar play with our igniting bar, our baby bar, and our pattern confirmation bar. And simply buying in at pattern confirmation and selling out using the 75% to resistance rule would have allowed us to profit off the run-up. Now, under my regular trading philosophy, I always emphasize buying in at confirmation of price strength, which is the first candlestick holding above our short-term blue SMA line.

But the reason this is different is because we only buy in at a confirmation when we have more elevating factors as compared to deprecating factors. and that's the usual strategy. I Use a system of elevating vs. deprecating factors and very rarely does it make sense to buy in at confirmation when the stock is trading in a downward direction under our long term.

Bredesen Mayline: Because you don't like to buy losers, We don't buy dead dogs on the side of the street, but the three bar play is a huge elevating factor in and of itself and that helps provide us with a powerful way to measure probability and spot reversals and we are in a downward direction. But that's not the whole story either. A 3 bar play can help us identify a massive breakout as well When we have a stock like PCG run-up massively like this, waiting for a confirmation can often mean missing out on a decent amount of the move since it hasn't yet opened above the blue SMA line. But when we spot the three bar ploy, we have a much better indication of a reversal at which we can buy in upon breakout above our baby bar and a 90 bar.

And you could say but Charlie This igniting Bart is one of those pansy bars that you hated on earlier in the video. and while it is a bit small, it only looks like a pansy bar because of the chart adjustment from the massive run-up. it's all about relative strength. That's just how it's portrayed on the chart.

Because of the massive run-up afterwards, a pawn break out over our baby bar, the igniting bar would have looked more significant. so this is really more of an illusion based on the later run-up, but with that being said, it is a little more than I like just to be honest, but it's not quite a pansy barn and you'll understand a little bit more about how to tell the difference as we go through the video and as you start practicing these strategies. But with this play, we saw it just barely holding above our long term directionless mayline before running up like an inflamed banshee. And in this situation, buying in upon a pattern conformation would have allowed you to write the price action up and over our price strength.

That's a male line, but there are also, of course, times where the three bar play is more sluggish than it is helpful. For example, on this chart of Tesla we got a confirmation over our short-term Bluest the male line way before we had a pattern confirmation of a three-bar play. and with this already small move, buying in at a three bar pattern confirmation eats away nearly half of the already minimal upside. So it is extremely crucial to only apply the 3 bar ploy in the best setups where it actually makes sense to do so.

It does not make sense to buy any when we've already had some massive appreciation past a confirmation of an uptrend. On the other hand, with Byn D utilizing the three bar play would have allowed us to enter before a regular confirmation of price strength. We see an igniting bar, a baby bar, and a break of resistance over the baby bar and igniting bar. And these are the types of positions that you want to utilize this play on because it allows you to buy in upon that pattern confirmation and then sell out at validation.

This gives you an extra margin for profit and an extra margin for error. Then if we were to simply wait and buy in upon our usual confirmation over our short term blue SMA line and when I see more potential for profit, Greedy Charlie comes out and starts barking like a dog. Woof woof! But anyways, the three bar ploy doesn't always look so clean. In fact, it still ray.

We could see that the wicks dictate most of the play here, but I show this example to emphasize the fact that this to be more employee isn't dictated by the bars, but the highs and lows as designated by the wicks of that period. That's because quite frankly, the opening and closing prices are in arbitrary periods based on what you set the timeframe to. So when you realize that you can understand that the play is designated by the wicks, but buying in upon a pattern confirmation would have allowed you to write the price drinks up and over both SMA lines and then sell out upon validation of a downtrend. By the way, every time.

I Talk about a Marijuana stocks Such as til Right, somebody in the comment section gets upset. I've gone at least 10 to 20 messages from folks who asked me politely to stop talking about marijuana stocks because they're offended by the aspect of marijuana. Once you start getting offended by different asset classes I think it's time for you to take a step back. I Have no response for these people.

You can't please all the people all the time. But anyways, buying in upon a patent confirmation would have allowed you to write the price, drink up and over both Esme lines, and then sell out upon validation of a downtrend. Okay, well anyways, at this point you should have a basic understanding of what a free bar plate looks like. and you should also understand that we don't trade pansy barns.

If you haven't taken a moment yet to comment, I Do highly recommend doing so because it just takes a moment for you to pause the video in the comment below and that's something that you will remember, especially if you don't usually comment on videos. because if you don't comment on videos and all of a sudden you take a moment to comment, then you're going to remember that time you commented. When you go to the market, the stock market is simply not a place for us to dance around like magical elves. so you need to make sure that you understand what it is that you're doing.

Always trade quality setups. Always trade quality setups. Okay, so what are the actionable steps? Well, an order to trade these three bar plate, We're going to need to know how to find them first. Now there are different ways I Recommend doing this and due to the fact that the quality 3 bar play setups don't exactly come in droves I Recommend doing all of these things.

The first is to identify stocks with potential catalysts the night before and then add them to your watch list. Potential catalysts include things such as: FDA approvals, earnings releases, new guidance, whatever you want, as long as you have a concrete date so you know when you were looking for them. If you need more help finding these catalysts, you are more than welcome to join our free zip trader circle. Facebook Group where I post my tea watch lists and that can help get you started knowing what to look for, but eventually you're going to want to do this on your own.

There's no reason to rely on my watch lists I only post them once a night and I can't cover everything, but it is a good place to get you started so you know what it is that we look for. But anyways, you can then set alerts and monitor the chart for these setups that warrant a three bar play. The second way is to scan for stocks that are oversold and increasing. This is my favorite scanner because it helps you find stocks that are both a good deal and are also increasing in value.

We like buying stocks that are increasing because winners are more likely to keep winning, and buying in when the price momentum is in our favor is a huge elevating factor. The third is to create a hashtag losers watchlist. We love losers Here at Zip Trader, 1/2 users watch lists identify stocks that have been beat down like rabid dogs and are also oversold long term. You could set specifications such as the ones I have set here.

My suggestion is to add an RSI study filter that gives you tickers that are oversold over Sully can often mean that they are due for a reversal, and setting a volume alert or change of direction alert can help you identify gap ups. The fourth way is to scan for stocks and ETFs that have a previous history of a three-bar play. History tends to repeat itself a certain percentage of the time. So if you can identify price action that is prone to this point, then you can be made aware when it happens again.

Sometimes I'll find that setups that display a bearish three bar play will often display a bullish three bar play when they reverse. So creating a watchlist for stocks with a bearish three bar play in the past will also be helpful for you. Another thing that I'd consider is to adjust the aggregation period of each candlestick. I Found that the three bar Play I found the three bar play to be the most common on the 5 minute, 2 minute and one minute chart respectively, but you may find it on other charts and durations as well.

It's just a matter of the time span as the position that you're trying to take. But the important thing is that when you identify a pattern on a certain aggregation period, you need to focus on that time chart for the setup. and the fifth way is to scan for after hours and pre market runners. These tend to provide price action around regular market open.

They are easy to scan for as well. The free broker Weeble has a hole scanning function that you literally just put after hours runners and it tells you all of the after hours and pre market runners. and of course Quick Plug. They are a completely free quality broker so if your broker curious you could sign up with our link below and get a free extra stock just for doing so.

But anyways, after you found what you think is a three-bar play, it is time to evaluate it. So step one was fine. Three bar Plays: Step cue is evaluate to 3 bar play as I Covered in the beginning of the video. There are several different variations of three bar plays, all of different quality.

So you are going to need to evaluate what it is that you scan for to make sure that they are worth trading. Say we find Mas and we identify this three bar play with an igniting bar, a baby bar, and then a patent confirmation. d3 Bar Play is in a region that is at fair value on the RSI has a recent history of over buying and thus can be seen as a quality setup for us. So you focus on buying in upon a breakout of previous resistance above the a bar and igniting bar and then holding until we hit validation.

You'd set your stop loss to the bottom of the baby bar because that is the point at which your position is invalidated. We don't want to hold a position if it's no longer relevant to us since we are focusing primarily on the three bar pipe. If these three bar pattern breaks, it is imperative that we exit our position again. Normally, I'm not a fan of the stop-loss but for the three bar point, it is imperative because we are focusing solely on that one play.

If you wait and trade a 3 bar play that is above our short-term esta mail I'm then you can simply hold until validation and measure the price drinks over the SMA line. But the problem with that strategy is that oftentimes if you do this, the whole purpose of the three bar play is pretty much nullified because you could have just simply bought in upon confirmation and wrote the price ranked above. Yes, Mail I'm selling out at validation, but the point is set a stop loss that is below the baby bar if you are relying solely on this pattern. Okay, but what if you're looking at a longer-term swing trade? Does the three bar play work on swing trades? Well, Yes, but be careful that you aren't trading pansy bars with a DMA with a DMA.

We have pretty nonchalant price action and then Boom! we have what appears to be a three barred play. But the problem is this isn't a 3 bar play. This is a pansy bar. It fits all of the other requirements, but it's just too weak of an ignition for us.

and you could make the argument that buying in at price strength, conformation over our SMA line and then simply holding out until validation would have been a better strategy. and you would have been right. So this is why it's so important to make sure that you're correctly identifying setups. On the other hand, something like a RNA that has a history of dipping towards or long-term SMA line and then moving back upwards is a strong set up for us and a strong set up for finding a 3 bar play.

See if you could find the best 3 bar play in this picture. I'll go ahead and give you 5 seconds. Well, I hope you found it. It's right here.

Buying in upon a break over our baby bar and ignition bar gives us an edge over the regular conformation entry point. On the other hand, this three bar play over here was already above conformation, so the three bar point here was less valuable than the prior three bar play. Anyways, I Do hope that I gave you enough examples then that you've totally beat into your head the three board play and you know exactly how to identify it. But if you would like more examples, I Do have a whole nother video on the three bar play for beginners that you can reach by clicking the link in the description below.

It has at least 1015 more examples. So if you need more beating in of the three bar play, you're welcome to check that video out. And last but not least, there is another variation call T for bar play where you have an igniting bar to baby bars and then a confirmation over the two baby bars. This is another powerful and fairly common strategy, and if you would like me to make a video on it, just go ahead and let me know.

in the comment section below, my videos and video topics are largely dictated by where I think the demand is so that I can reach the highest number of people. So if you would like one of those, go ahead and comment below and let me know if enough people comment I'll make a video on the 4 bar play. Ok, now so with what you've learned on the three More play, how many times will you need to train in with how much capital you need to trade with in order to make that 100 dollars a day? Well, in order to make $100 a day consistently on average, you're going to need to make about a hundred and fifty dollars on your winning days as you will inevitably have some losing days and the extra fifty dollars won't will give you that average over a hundred dollars. So to make 150 dollars, there are a few different ways to go about.

This one is to trade setups with one to five percent of upside and then use the 3 bar play to take half of that. We never take all of the move. Let's just round down and say we're going to take half if you are trading with, say, a position of three thousand dollars, which is on the lower side if you're a day trader. But if you are trading with a position of three thousand dollars to three bar trades with a 2.5 percent increase, we'll get you to that 150 dollar mark per day.

And depending on the volume and type of position that you are taking, you may be able to increase your position size to a certain extent in order to increase your profits overall. And of course you could trade with significantly less than that. I Do recommend trading with simulated fake money first and then may be traded with a small position until you scale up your efforts. You don't trade with thousands of dollars just to start on a new pattern you have to learn in the beginning skills are more important than capital and then it switches up a little bit on the other and that was four setups that have a big removed.

But you'll notice that some of the setups in this video didn't have as big of a move. If you're trading setups with less than eight percent of upside and are practically scalping pieces off of the move, you're either going to have to trade with a lot more capital to make up for the difference in Upside, or you're going to need to amplify the movements by using options. If you are interested in learning how to amplify the movements by trading options, my suggestion is to check out our options trading for beginners video in the description below. Okay, well I do hope that this video is useful if you have any questions whatsoever.

feel free to reach out to us below or join the free zip trader circle Facebook group. We also have a discord chat, a training tutorials, playlist, and a bunch of other resources in the crater hemisphere that you can reach by joining the zippering circle Facebook Ripping Going to the resources tab but I do want to encourage you taking a active approach to your learning I'm a huge fan of action based learning, so do me a favor and do yourself a favor and go ahead and scan for stocks with the 3 bar ploy immediately after watching this video. That'll beat in all the material anyways. I Do appreciate you watching if you'd like more short, sweet and simplified videos on how to trade the stock market, go ahead and hit that subscribe button.

Have a great day folks and I'll see you in the next video.