[00:02] almost every day. Just five things in order. First, stock turns off the low of the day. It sells off, puts in a low, stops going down. That's the starting Second, momentum builds back towards VWAP.
[00:17] Quick definition if you're newer, VWAP is the volume weighted average price. Basically, the average price everybody's paid for the stock today weighted by where the volume actually traded. Think of it as the day's center of gravity.
[00:32] So, after the low, I want to see price grind its way back up toward that line. That move back is the momentum rebuilding in real time right in front Third, and this is the trigger. The 9 EMA crosses VWAP. The 9 EMA is
[00:51] just a fast short-term moving average. It tends to hug price. It reacts quick. So, when that line turns up and crosses through VWAP, that is the entry signal. That's the moment. Fourth, you enter right there at the cross. You don't wait
[01:08] for the candle to close. You don't wait for three more bars to close so you feel sure about it. The 9 EMA cross is the confirmation. It happens, you're in. And fifth, your stop and your target come off the measured move. Simple. You
[01:24] measure the distance from the low of the day up to the cross. That distance is your unit. Your target is one full unit above the cross. Your stop is a third of the way back down toward the low. And that's why that
[01:40] math comes out clean. When you enter at the cross, you're entering right around VWAP. So, the distance from the cross down to the low is basically the same as the distance from VWAP down to the low. You're risking a third of that going for
[01:55] You're risking a third of that going for a full one unit. That's where the roughly three to one comes from. You risk one, you're looking for three.