Ask Thor your Trading Questions!

[Abiel 475]

Please use this thread to ask Thor your trading questions. Please use the search feature to look for your answers before contacting the Bear Bull Traders Team. 

[IANIK TOUSIGNAN 2]

7 hours ago, Abiel said:

Please use this thread to ask Thor your trading questions. Please use the search feature to look for your answers before contacting the Bear Bull Traders Team. 

Hi Thor,

I would like your advice on trade I took on PINS on feb. 9th. My entry was good but I didn't partial where I should of. Because I was waiting for the 25.20$ target or more. Then I didn't realize fast enough that the stock was getting weak. Hence I left a bunch of cash on the table. So what's your advice on partialing and what I should look for to know the stock won't reach the target. Lastly what you look for to know the stock is getting weak ?

[Thor 29]

Hello I’m very familiar with this trade cause I took It as well. So couple things on this.

1. I would’ve taken a partial a 25.19 or .18. If I recall on the L2 there was a very large ask at 25.20. In the millions I think. Orders like that can top a stock which is what happened here at the rejection of a key level. That’s why I took one there. 
 

2. Constantly evaluate your position. If you notice $PINS did a textbook head and shoulders off that daily level. If nothing else take a small partial. And if the stock becomes stronger you can always add back in. I got all out when the stock rolled over and failed to make a new HOD.

I attached my journal on it. 
 

Hope that helps

 

Thor

[IANIK TOUSIGNAN 2]

Thanks a lot Thor ! Really helped, have a good day !

[Iyer 0]

Hi Thor - 

Can you please share your approach to get best settings from montage ?

Specifically, in the past I have noticed your montage window is much taller..

thank you !

 

 

[kielyy 3]

Hi Iyer, 

I don't know all of his montage settings but I do know why his montage is a lot taller. If you right click on the montage and click on "level 2 config," Thor has his Tier's set to, I believe, 100. What that does it gives a much more in depth view of where the big bids and asks are. That is how he is able to see where there are a lot of big bids and asks are in the premarket and he can mark off those areas. 

Another thing that I have found quite helpful with level 2 is something Kyle talked about in his success webinar.  If you click on INET on your montage, it is much easier to see where exactly those prices are that have big bids and asks. 

Hope this helps!

Yungk

[hailchaser2 185]

@Thor today I had an L2 that was a bit strange. Price was dropping and there were numerous large asks (60,000 40,000 20,000 20,000). Normally when there is such an imbalance between bids and asks, the price goes up to the asks. These Asks kept following the price down and were never getting filled. Each second the price would go down a penny and all of these Asks would drop down a penny instead of staying at their initial price.

What was this about? If they wanted to get out of the stock, why didn’t they just use a market order? Does this have something to do with institutional trading?

I assume this is a good signal that the price has a better chance of falling instead of going up.

thanks

[Iyer 0]

thanks Yungk

[Thor 29]

On 3/5/2020 at 10:20 AM, Iyer said:

Hi Thor - 

Can you please share your approach to get best settings from montage ?

Specifically, in the past I have noticed your montage window is much taller..

thank you !

 

 

Hey lyer, My montage settings are in fact 100 which is why it's so long. Sorry it took so long to respond but I'm glad Kielly answered you correctly.

 

Regards,

 

Thor

[Thor 29]

On 3/10/2020 at 7:46 PM, hailchaser2 said:

@Thor today I had an L2 that was a bit strange. Price was dropping and there were numerous large asks (60,000 40,000 20,000 20,000). Normally when there is such an imbalance between bids and asks, the price goes up to the asks. These Asks kept following the price down and were never getting filled. Each second the price would go down a penny and all of these Asks would drop down a penny instead of staying at their initial price.

What was this about? If they wanted to get out of the stock, why didn’t they just use a market order? Does this have something to do with institutional trading?

I assume this is a good signal that the price has a better chance of falling instead of going up.

thanks

Hey Hailchaser,

Are you gonna make it for the L2 class on Wednesday that I'm doing? One of topics I will cover is reading the imbalance. What can happen is if there is a large stack of sellers on the L2 and it's to heavy and there isn't enough buyer enthusiasm the stock will drop quickly. Partially that's because traders start taking profit in front of the large orders knowing it will be harder to get filled on the other side which eats up the few buyers there are. Once the price starts to fall. Now the large orders following the price down is really interesting. I will also be talking about spoofing and how large accounts manipulate the price action.

Hope you can make it

Thor

[Iyer 0]

Hi Thor,

Thanks for replying!

I checked my settings today..

and I have selected 100 checked in L2 config, but, still not showing all the orders further down below..

Not sure, what error I am making..

Would you mind sharing a screen-capture of your level 2 config montage settings?

I am hoping this is the only area where I need to update something with respect to the L2 config montage settings to obtain a similar order view like yours.

 

thanks!

[Iyer 0]

Thor -

I watched the L2 webinar.

You covered my clarification on the montage settings.

And I was able to update my settings.

Thanks again!

[ioniuy 3]

Hi Thor,

First wanted to thank you for your time and dedication on the chat, I'm learning a lot about price action and Level 2 which has been the hardest thing to my trading learning curve so far.

Saturday night 3 am and as a good market lover I'm reading the "Volume Price Analysis" book you recommended during the trading sessions last week. I'm starting chapter III and the last part of chapter II got my attention and raised a question that you might help me clarify.

I've been trading a lot of breakouts on volume, not so much on a daily basis but usually for a swing, on the well documented assumption (ONeill, IBD, Mike Minervi etc.) that volume shows institutional interest and money flow and when you see volume on a daily chart and a breakout form an important level there is more to come and buyers will step in. But on the other hand I found a contradiction in the book since it says that from a wholesale (institution) perspective high prices with rising volume are selling climax, and I quote 

"So, when the market has moved sharply lower in a price waterfall and a bearish trend, supported by masses of volume, this is a buying climax. It is the wholesalers who are buying and the retail traders who are panic selling. A buying climax for us represents an opportunity.
 
Likewise, at the top of a bull trend, where we see sustained high volumes, then this is a selling climax. The wholesalers are selling to the retail traders and investors who are buying on the expectation of the market going to the moon!"

This also brought to my attention all those SPY charts showing rising prices since march with declining volume as a warning sign, but from the book quotation lower volume on rising prices should be ok since the institutions aren't selling yet. I'm attaching a SPY chart on my take after my reading.

So which one is it? What do you think?

Thanks a lot.