So today, we're going to be talking about the top three stocks this week. Now these are stocks that, based on previous price action and established direction, have a high likelihood of providing the price action that we need to trade off of this week. But I Want to emphasize that now, more than ever, you need to trade like a spoiled brat. You should only be taking extremely high quality setups and making sure to have a plan.

You need to get in, get what you need, and then get out. You need to trade like a spoiled brat. And of course, if you need help I don't want you to have to go at it alone. so feel free to join our zip trader circle.

Facebook Group link down below. You can also comment below: I will respond to each and every comment as long as you don't comment something dumb A lot of folks ask me: Charlie should I buy X stock or should I sell blank stock or Charlie should I invest in organic candles. The answer to the first two questions is unclear in the last question is very clear, but these questions aside from the organic candle question pretty much missed the entire point of these videos. And that point is to make sure to have a plan when trading these stocks.

Make sure that you're looking for the best setups and organizing your trades so that you have a specific entry and exit point. So if there's any question that you have that doesn't fall into those categories, make sure to comment below. I will be making an effort to respond to each and every single comment. And of course I also get a lot of questions on simple ways to increase your returns.

and I'd say one of the easiest ways to do that is through a commission free broker such as Weeble And commissions really do add up. so I do continue to support any broker that makes a good platform that also has great executions while not charging for commissions. And of course, if you do choose to sign up with our link below, you will get two free stocks just for trying out this free broker. But anyways, the only thing I ask of you in return for this ravishing video is that you hit that beautiful like but didn't also subscribe if you see value in the following video.

Okay, so now the overall market direction has been increasingly unpredictable with trade announcements and interest rate speculations. This is something that bothers a lot of folks, but as traders, it's actually quite a wonderful thing because where there is movement, there is opportunities for us as traders. So with that being said, the first pick on this list is the lab you lab deep in. There is no better way to start a top stocks list than by introducing something that's not of stock, but rather an ETF.

So Buhl Abdi are stunningly beautiful biotech. ETF Pair has been providing some clean price action for us to trade off of and LabVIEW has benefited from the overall uptrend in the market on Friday. As we know when lab you trends up, its inverse, Lab D trends down and vice-versa Now, Lab D has a week pattern of being oversold and overbought, but you'll notice that every single time buying in upon trend reversal instead of just focusing on being oversold would have netted us a good entry point and you can go through and track back and see that every single time that had been the case. If you had just simply followed those criteria, you would have made a profit.

But of course that doesn't necessarily mean it's going to continue. But this is you know, one step in the right direction. By the way, if you are new to the channel or read: SMA line is simply our trend strength indication. This is the longer-term SMA line and the blue SMA line measures intraday movements and gives us a read on price strength and weakness so that we can better catch reversals when the price action is about to turn on us.

This gives us validation points also known as exit points. That kind of give us an idea of already to get out because if we're just randomly holding, we're probably going to lose a lot of our games. so that's it's very important to have early warning signs of a reversal on the blue SMA line is really an excellent indicator for that. If you'd like to know how they're set up.

I Do have a whole video on that on week two in the description, but you could also just simply look up here where we have the two blue and red little categories where it shows all the numbers and they're all in numerical order, so you could literally just copy the specifications and then move them. But anyways, we do see consecutive runs over our blue SMA line signaling price strikes and then bin consolidation and a break of direction, a fake-out and then boom trend reversal back upwards. Now, buying in upon reversal of direction and confirmation on our blue SMA line would have netted us a profit each time. There are a few time periods where the reversal and price strength was less lucrative, but because of the cleanliness of these run ups, we are made aware of this immediately as we know distance between the price action and our blue SMA line is a sign of price strike and distance between the price action and our read has some a line that's a measurement of directional strength.

How strong is the overall direction of the stock or in this case the ETF for example, we know that price strength is stronger here where we have space between this may line, but weaker here where we have less strength. Both are bullish because they are trading above the SMA line, but one is an early warning sign where the other is simply showing continued price strength. Likewise, the overall direction of the price action is stronger here than it is here as we have more space and less space respectively. So why is it that I mentioned this well? Lab DS Inverse LabVIEW is now showing signs of a reversal opposite of Lab D LabVIEW has periods of attempted reversals over our Red SMA line, but is then promptly rejected and continued selling off.

So looking at Friday's close on LabVIEW we have extended strengths over both SMA lines with some brief consolidation after hours. So I see two possible scenarios for the Lab you have the inverse Pam The first scenario is that we continue to see this previous pattern of failing to hold the up training direction over our Red SMA line, In which case we'll see an acceptance of a reversal on Lab D And in the second scenario that I see happening, Lab U continues holding its price strength at Open Monday and going into this week. But how does this translate Intraday, it tends to hold direction above our red SMA line with clear price action, run ups, and then consolidation below it. But we are currently in a period of a strong uptrend over our red as the May line, but with weak price strength over our short term SMA line.

if we zoom in to intraday Friday we do have this solve a trend direction, but the price strength over our blue SMA line is a bit of a hit and miss. So what I'll be looking for this week is a rejection of our trend reversal on our red s in a line which will convert which will confirm for us that yes, we are in a solid uptrend and then of course I'll also be looking for an actual confirmation intraday. Always wait for confirmation. In a scenario where we see an acceptance of a reversal over our red SMA line, we'll go ahead and flip the switch and trade lab these price and directional strengths.

Okay, great. So now I have no doubt that even matching this next one is going to cause a lot of our viewers to sort of roll their eyes. But I am just going to have to bear the brunt of this because Uber has been providing some interesting opportunities and it looks like it's about to test a reversal quite clearly. After accepting an upward reversal here and rejecting a reversal here in the pre-market and once again at Market Open, we saw this pretty decently clean run up.

In fact, on this particular day, we saw such a beautiful run up. Such a beautiful run up over the SMA line with pretty clearly marked exit points. We love validation. We love validation folks, but we are starting to see the price action closed down on its upper direction and get close to testing trend strength.

How strong is the direction? Is it going to hold direction or is it going to break into a downward direction? So what it is that I'll be looking for is a rejection of a downward reversal. Overall read: SMA Line: If it accepts the reversal and we trot into downward territory, my spoiled brat senses will kick in and I'll stay out of the position because we want high quality positions, You could make the case to go short on this if it does break the trend. but I'm not making that case because of the lack of previous price action. This is a fairly recent.

IPO Now the next is Docu now. Doc. You got beat down 12% on both a solid earnings report, but poorly received customer growth. But with that being said, customer growth is up 26% year-over-year I Believe that's the number.

Yeah, 26% but this is less than expected. And the stock? you? well, Doc, you got beat down like a rabid dog had. Meanwhile, the company actually lifted their expected revenue guidance upwards. yet after seven months of holding its overall uptrend over the long term SMA Line: it's still accepted a reversal below it and below long-term support.

So I Don't want to hammer this on the head too hard, but it's widely known that I Love Tofu Tzer's Top Losers. It's fantastic and top losers like this one that get beat down while also providing solid earnings and increased revenue guidance for the future. This just screams overreaction, but I don't want to hammer this on the head too hard because there's a little bit more to it. What I'll be looking for is the holding of directional strength over our long term bred SMA line and some clean shortage for run ups that technically back up my hypothesis.

We want something that technically backs up your prediction for the stock based on you know your fundamental overreaction needs. Play does the price action back up what you think is happening, and if it does intraday then you know that. Okay, it's time to take a risk managed position. So we are going to be looking for a technical backup for your hypothesis that this is indeed an overreaction play.

And it's important to know that just because something looks like an overreaction, it smells like an overreaction. It sounds like an overreaction. Hey, maybe tastes like an overreaction. That does not necessarily mean that it's an overreaction.

We can't declare it as an overreaction until the technical price action. The movement of the price backs it up, and the spying in upon confirmation and rejection of a directional strength change is going to be a more solid strategy than just randomly buying in because it tastes like an overreaction. But with that being said, this does apply to all top losers. There are a ton of opportunities trading top losers, and the beauty is that a lot of folks just don't pay attention to them.

Top losers are almost always an overreaction, but since trend direction isn't on our favor with a new top loser, it's extremely important to confirm science of an uptrend before taking a position. This means trend direction, minute-by-minute priced rates, etc etc. Okay, so now I know my biotech dip traders want to know what I'm thinking about PTM Now Ptn has an FDA approval decision on the 23rd and we've seen some interesting price action leading up to it or 180 day chart arguably tells the story quite well. We saw a acceptance of upward direction here and some beautiful rutting with some solid directional strength.

but the last few days of market opening, we tested a reversal of this direction and if we ultimately see it, hold the reversal and break into a sustained downtrend, I'll be a lot more spooked. And quite frankly, we aren't seeing any early warning signs of an uptrend. So even if it is ultimately so, even if it does ultimately reject the trend reversal downward, we are going to need to see more than just barely holding price strength. So personally, I do believe that the best play with this is to wait until we do see a rejection of a reversal over already long term SMA line.

But buying in upon confirmation is going to be very important and perhaps it might be worth it to wait until we get closer to the FDA approval date. Now there's a lot of sort of conversation about my FDA picks in the FDA approval sector and I just want to say that it doesn't matter whether or not you think that an FDA approval is going to happen, all we know is that it's going to cause massive changes in the stock price. So with that in mind, we're going to need to manage our risk. With these positions, you need to have a plan and I know this sounds redundant and I say have a plan all the time, but you need to have a plan.

You're going to need to plan out exactly where your entry point is going to be and what your exit point is going to be Now the exit point. Obviously the stock price can move it you so you need to have a clear point and I like to use the validation line to kind of validate when to exit a position, but you could use whatever you want, but make sure that it's a clear point at which you're going to exit and it needs to factor in what's going to happen if the price does go the way you want it to like, where do you get out then and my strategy of exiting is by using the validation line. I'll put a link in the description below to my video on when to sell a stock using the validation line, but in any case, make sure to have a plan, entry, and exit point plan. Okay anyways folks I Hope this video is helpful for you if you have any questions, feel free to comment below or join the zip trader Circle Facebook group of course.

We also have a trading tutorials playlist which will give you a walkthrough of everything you need to know when trading within the stock market. Anyways, as always, have a great day folks and I'll see you in the next video.