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Is there a way to deal with double fake breaks when trading parabolic reversal? My parabolic reversal trade book is: Wait for consecutive candles, extended from 9EMA Climactic volume Reversal candle Wait for fake breakout Enter at the new 1-min high/low But sometimes there are double fake breaks, is there a way to anticipate that? Thank you.
Newbie Questions: 5-min ABCD
nick jiang posted a topic in Day Trading StrategiesI'm new to BBT, and have been simulating 5-min ABCD for the past month. Hope someone could help me with these questions, thank you! If a stock has been trending up on the daily chart, but trending down on the intraday chart but you see consecutive green candles, can you still trade ABCD going up? If there are multiple green candles going up but one red candle in the middle, where do you start counting A? Regarding confirmation, if the candle pushes past D, do you wait for the 5-min candle to finish before entry or do you enter right away? What if D is close to 9EMA but extended from VWAP, do you still enter this trade? ~ Nick
Olivier posted a topic in Day Trading StrategiesHello, I trade mainly extreme reversal on small-caps and mid-caps on the short side. I was wondering if someone in this forum has a similar strategy and would be willing to discuss her/his strategy. It could be about scanners, entry points, brokers for short locate, how to identified the stocks that are not suitable, etc. I have my own approach and strategy but I'm always looking for improvements. Oli
OTC's DT Journal
OTC posted a topic in Day Trading JournalsHi BBT, New to DT (~90+ days) but have been swing trading for several years. I am excited t o go on this journey! I would like to welcome everyone to my DT-ing Journal where I will summarize my trades, thought process, ideas/potential trades, psychological state during trades, and overall grade for the day. I am here to learn so I would greatly appreciate your feedback (harsh or not, I am here to learn so do not be cordial, LOL - I welcome constructive criticism). Thank you in advance for your support and willingness to help. I am excited to be a part of this amazing trading community! DAY – 1 (7.13.2020) Trades: 6 Symbols: 4 Psychology: Planned on not trading, reason #1: did not sleep well and woke up late, reason #2: have several swing trades going. I broke that plan. Goal for the day: Manage swing trades, take profits, average down or add shares on PB's according to plan. Market: Strong finish on Friday 7/10/20. COVID19 cases at all-times high in many states. Q2 earnings season starts today, will banks will be a major indicator for bullish continuance and overall market sentiment? WL: TRADES: DKNG Catalyst: Friday, 7.10.20 Doji on daily chart, at the bottom of a daily chart trading range, voluntarily delisting warrants (SPAC) due to low volume (negative news). I have been looking to take a long position for a swing trade at the bottom of the range, last attempt. Strategy: VWAP break-out Long bias, opened weak - entry at 9:34 after indecision and hammer testing the 9 EMA, holding VWAP and the 100 SMA. Stop was the loss of 9 and 20 EMA at 100 SMA, secondary plan was if it held 100 SMA to re-enter, failed. Overall plan has been to take this long for a swing trade, however the news of delisting warrants reduced my confidence. This was one last attempt at this ticker. Stopped out at 100 SMA, removed from future WL until scanner shows more volume. Overall grade = A. Good recognition of weakness, entry was fair, and SL was not adjusted. TM was well executed. NI – Remove bias in a stock and read the technical. MRNA Catalyst: Buy rating upgrade, continuation on strength from Friday, 7.10.20. Strategy: Break of HOD Long bias, chatroom call-out. Poor execution of entry, FOMO. Did not wait for a proper PB. Too extended. Stayed in this trade on willingness to hold for swing based on the strength and catalyst. I have been watching and analyzing this ticker, recently sold swing position. Good job of not averaging down on PB to VPOC support (although averaging down would have been acceptable, based on my plan and risk level). If VWAP was lost I would have ‘bailed’. First partial was at R-level, $74.56. Second partial was at $76.00, good job of being patient to partial later rather than sooner on overall strength and L2 orders. Third partial was at new HOD, $76.90 (Good recognition of time of day, common time of day MRNA turns over). Overall grade = D. Entry was poor (F), partials were good (A), overall TM was a fail with a R:R = 1R. I see the consistent pattern of chasing and entering too extended. My afterhours analysis of this ticker kept me confident to risk/reward. However, I will not be so calm if I start trading 500+ shares of a ticker priced like this, max risk on this trade was 1.8% of total account value whereas my profit take was ½ that amount – too much! NI – Better entries, stop chasing extended tickers with FOMO. Learn to manage R:R before I blow up account. VXRT Catalyst: Buy rating upgrade, $90MM capital raise for COVID19 R&D Strategy: Break of HOD Long bias, RVOL high, heavy trading volume, similar strength to MRNA. Did a poor job of assessing entry (common theme), rush in to two entries and bailed - FOMO. E3 was after assessing price action and EMA/SMA tests/retests, etc. E3 was good, first partial was at R-lvl, too many shares, still panicking on partials to avoid going red. Plan forward – remove profit window and trade for levels and by technical not P/L. Partial 3 was good, at intraday level, ceiling becomes floor. Final partial was at new HOD but I was not at station, set it and forget it (ticker hit HOD = $13.53, my profit take was = $11.90) Overall grade = B. Too many entry/bail, poor (D). Partials were good (B), overall TM was a C grade due entry/bail however R:R was excellent (13.9R). GREAT add-on at 20 EMA re-test, partials beyond this were (B), held 15% shares to reach $12.00 new HOD. NI – Better entries, assess price action and technical before entering trade. Establish a R:R strategy such as: 20/30/50% on strong stocks. SPCE Catalyst: Strong stock on daily, recently sold off, Strategy: Support Hold (after 1st 15-min sell of on trend day) Long bias, Entry at support level $19.46 after exhaustive volume trend with consolidation, PA tested this support for ~30 (yellow box). P1 at VPOC R-lvl, P2 at floor turns to ceiling intraday level, P3 at some random level (poor take), P4 at new HOD. Held 100 shares and added 200 shares (cum = 300) for swing trade because on daily chart this ticker sold off HARD and has been strong 7+ days. Overall grade = A. Good trade over all, could have waited a little longer to enter the trade at 100 SMA test, P3 was on panic? poor partial, P4 was slightly early but L2 was iffy. NI – Better entries, recognize the strength of the market and "trend day" - take larger position to maximize P/L to make week goal, instead of a daily P/L goal. Final Review: Goal for Day – FAIL, DT-ed instead of only manage swing positions. Day was GREEN (7X Goal). Am I being to hard on myself since I am new or did I just get lucky? I think its the latter, if MRNA wouldn't have worked out I would have ended RED (-6X Goal or 1.8% of account value). Things I do well: Wait to partial at higher Rs, however this is with limited amount of shares, need to work on partialing strategy. Things I do poorly: Bad entries, chasing FOMO, too extended. TM is poor due to unbalanced R:R
Koonu007 posted a topic in Members Introductions & MeetupsHi Guys, Pretty new here. Really enjoying the learning curve. Although it is overwhelming at times. If any newcomers are interested in starting a WhatsApp group to share ideas and learn together feel free to add me: +97470243682 Interested in sharing strategies and discussing trading with some like minded people. Anyone a little further in their journey feel free to get in touch. I'll set up the group as people get in touch and we can take it from there. Let's limit it to 3-4 I think. Look forward to talking trading.
PDF: Candlesticks Made Easy
HustleBones posted a topic in Day Trading Basicscandlesticksmadeeasy (1).pdf Hey guys, my friend, a very happy options trader, sent me this book on candlestick analysis. Some of what is in here is covered in Andrew's videos, and some of it is new -- and he goes into a "how and why it works" explanation when discussing candlestick patterns. A few people in the chat wanted to read it so I am posting it here. Enjoy