About this Video

• Video Title: Master the Stock Market: Class with Shorty (11/19) Revealed
• Channel: Catching Rockets
• Speakers: Shorty
• Duration: 3:07:41

Introduction

This video is a stock market class taught by Shorty. The main focus is on using a unique set of "clouds" (a technical indicator) in TradingView, combined with volume profile analysis, to identify potential long and short positions in the stock market. Shorty reviews several stocks, explaining his rationale for considering them as potential investments based on his technical analysis.

Key Takeaways

1. Cloud Analysis: Shorty utilizes a custom indicator ("clouds") that displays monthly, weekly, daily, and 4-hour ranges to identify stocks at monthly or weekly bottoms, indicating potential buying opportunities.
2. Volume Profile Integration: The "clouds" are used in conjunction with volume profile analysis to confirm the validity of potential trades and to identify points of control (POC) and areas of liquidity.
3. Long-Term Investment Strategy: Shorty primarily focuses on long-term investments, looking for opportunities at monthly and weekly cloud bottoms with consolidated volume profiles. He also discusses using options strategies for both long and short positions.
4. Risk Management: Shorty emphasizes risk management by using stop-loss orders and calculating risk-reward ratios (e.g., 5-to-1 trades) before making any investments. He explains how using cloud levels provides higher-probability trades.
5. Market Auction Theory: The class includes a detailed discussion of market auction theory, explaining concepts like buyers, sellers, value areas, and the importance of identifying the market's current state (balance or imbalance) to understand price movements.

Stock Market Class with Shorty: Study Guide

This study guide complements the "Master the Stock Market: Class with Shorty (11/19) Revealed" video. Use it to take notes and track key concepts throughout the video.

I. Introduction (First 10 minutes):

• Briefly describe Shorty's overall trading strategy. What timeframes does he prioritize?
• What is the purpose of the custom "clouds" indicator? What timeframes does it show?
• How does Shorty use the "clouds" in conjunction with volume profiles?

II. Stock Scanning and Analysis (Minutes 10-60):

• Create a table: For each stock mentioned (e.g., ZScaler, AMD, AT&T, O, TLT, NM, RTFX, UPS, LUV, JD, Foot Locker, Dollar Tree, Celsius, Campbell Soup, General Mills, McCormick, J&J, Canadian Solar, Wolf Speed, Caterpillar, Invidia, Verizon, Shop, Meta, Chipotle, Melly, Pfizer, Lulu, etc.), create a table with the following columns:

|Ticker| Shorty's Action (Buy/Sell/Watch)| Price Mentioned | Cloud Level (Monthly/Weekly/Daily) | Volume Profile Observations (POC, etc.) | Rationale for Action |

• Note: Fill in the table as Shorty discusses each stock. Pay attention to his reasoning (cloud levels, volume profile characteristics, price action) for each decision.

III. Market Auction Theory (Minutes 60-120):

• Define the following terms in your own words, providing examples from the video:
  • Market Auction
  • Buyers/Sellers
  • Efficient/Inefficient Markets
  • Initiative Buying/Selling
  • Acceptance/Rejection
  • Value Area (Highs/Lows)
  • Point of Control (POC)
  • Fair Value
  • Unfair Highs/Lows
  • Access Highs/Lows
• Draw a simple diagram illustrating a market auction process.
• How does Shorty use understanding of market auctions to inform his trading decisions?

IV. Volume Profile Analysis (Minutes 120-180):

• Define the following terms:
  • Volume Profile
  • Point of Control (POC)
  • Value Area
  • High Volume Nodes (HVN)
  • Low Volume Nodes (LVN)
  • Accumulation Setup
  • Virgin/Naked POCs
  • Standard Deviations (in relation to volume profile)
• Explain how Shorty uses volume profile analysis to identify potential trade setups and risk management points.
• Draw a typical volume profile, labeling key areas.
• How does Shorty utilize standard deviations within the volume profile?

V. Market Profile Analysis (Minutes 180-240):

• Define Market Profile and explain how it differs from Volume Profile.
• Explain how Shorty interprets the different letters (A, B, C, etc.) in the Market Profile.
• What are "single prints," "poor highs," "poor lows," and "access highs/lows" in the context of Market Profile?
• How does Shorty use Market Profile to determine the type of trading day (trend day, non-trend day, etc.)?
• Explain the concept of "framing" in Market Profile.

VI. Trading Day Types and Open Types (Minutes 240-300):

• Describe the different types of trading days discussed (trend days, neutral days, distribution days, etc.). Note the characteristics of each.
• Describe the four opening types (open drive, test drive, rejection, open auction) and their implications.
• Create a table summarizing the relationships between day types and opening types.

VII. Putting it All Together (Minutes 300-End):

• How does Shorty synthesize the information from volume profiles, market profiles, and auction theory to make trading decisions?
• Describe Shorty’s approach to risk management and position sizing.
• What are his general guidelines for entering and exiting trades based on the combined analysis?
• What are his key takeaways and recommendations for viewers?

VIII. Review Questions:

After watching the video, answer the follow-up questions provided in the previous COFYT response. Use your completed study guide to support your answers.

This detailed guide should help you effectively follow along and learn from Shorty's stock market class. Remember to actively participate by taking notes and engaging with the content.