Thunder dome

[A_aron 27]

Date: 1-11-21
Stock: BA
Strategy: Directional
Long/Short: Short
Entry: 202.84
S/L: 203.46
Risk:  0.62

Plan of attack:
-          I was looking for a reversal down b/c BA has had negative news the past few days. [ legal issues and the plane crash]

 Why did you take the trade?:

- BA has had negative news the past few days. [ legal issues and the plane crash]
- gapped down pre-market
- 1 min chart had a large candle with low volume [ anomaly]
-price action broke through the VWAP

 How did you feel after taking the trade?:
-          Lucky. I accidently exited my entire position instead of partial out. 

 What did you do well?:
-  Entry, taking initial profit over 1R

 What can you improve on?:

-          Look at the spread! Slippage hit me hard with my exit
-          Had tunnel vision, didn’t even see the shooting star prior with very low volume or the candle prior to that one had a large battle between the bull and bears. The bulls came back with some power.
-          Look at the whole picture.
-          The risk was a little higher than I wanted, should of taken a smaller share size.

  Other:

-           Had my plan been a scalp this would have been an excellent trade. However I was looking for a longer reversal play.

Question:
- Is there any signs that a squeeze is about to happen or do you not know until it actually happens?

Chart: 2min,5min,15min

 

[Michael Sanchez 53]

Stock: MARA

Strategy: ABCD

Why did you take the trade?: 

I took this trade because I saw that the price action was holding at the 1 min 9 ema. I wanted the price action to consolidate at then break out to the long side. Then the stock made a new 1 min high I entered the trade with a horrible R/R. I got out early because my R/R was awful. While I did some type of way because the stock broke out,  I know I did the right thing at the end of the day. I did not want to be rewarded for having a bad R/R.

Long/Short: LONG

Entry: 22.18

Risk: 89 CENTS

S/L: 21.29

How did you feel after taking the trade?: After the trade I felt a little disappointed for not putting my S/L below the previous candle low. 

What did you do well?: Recognizing my setup

What can you improve on?: I can improve on tightening my R/R

Questions?: Would you have stayed in this trade?

 

[Michael Sanchez 53]

Stock: NIO

Strategy: ORB

Why did you take the trade?: I took this trade because during premarket the price action was consolidating at the 15min 9ema. I was expecting the stock to breakout to the long side, but I just needed a perfect entry at the open. When I saw that the stock could not go any lower after the fist candle on the 1 min chart I took the trade. However, the stock did not breakout like I wanted it to so I got out. 

Long/Short: LONG

Entry:  65.14

Risk: 60 cents 

S/L: 64.54

How did you feel after taking the trade?: I felt great. The trade did not go my way, but I was able to recognize it and get out above break even.

What did you do well?: Patience

What can you improve on?: I should have taken the stock as a whole into consideration. NIO was gapping up heavily and I should have known that the stock was going to pullback.

 

[Michael Sanchez 53]

Stock: AAPL

Strategy: ABCD

Why did you take the trade?: (Clustering Illusion) I saw a pattern that was not really there

Long/Short: LONG

Entry: 129.97

Risk: 42 cents

S/L: 129.55

How did you feel after taking the trade?: I did not feel great about it. I was doing so well with my first two trades, but this trade was based on faith.

What did you do well?: My R/R was not bad at all

What can you improve on?: I need to take the time to analyze the price action. I also need to pay attention to resistance levels. 

 

[A_aron 27]

Date: 1-11-21
Stock: BA
Strategy:  Directional
Long/Short: Short
Entry: 202.77
S/L: 203.23
Risk:  0.46

Plan of attack:

-          Go short once it break VWAP, Take profit at same exit of previous trade.  However, for context, I was looking at a different stock and flipped back to BA. I saw the price action made a solid move down and I didn twant to miss another big drop and be too extended form the VWAP. So I jumped in immediately. 

Why did you take the trade?:
-          Negative news and gapped down in pre market
-          Saw a bunch of shooting star candles with a variety of volume.
-          The slow stochastic looked close to crossing over to a bearish control   

How did you feel after taking the trade?:
-          Frustrated that I took a FOMO trade

What did you do well?:
- had a stop loss 

What can you improve on?:
-          Keep emotions cool, calm, and collective.
-          Need to go back and look what the price action does when it shoes a bunch of shooting stars/ hammers with little or average volume. Is it a sign of weakness/strength or jus the market makers testing the who’s in control of the market?

 

Chart: 2min,5min,15min

[A_aron 27]

Sanchez,

NIO:
I think this was a good trade in terms of set up and your entry on the 1 min chart. Why didn’t you take some profits out at 2R and/or around the 3R mark? What was your exit targets? Why did you choose those?

[Michael Sanchez 53]

 

1 hour ago, A_aron said:

Date: 1-11-21
Stock: BA
Strategy:  Directional
Long/Short: Short
Entry: 202.77
S/L: 203.23
Risk:  0.46

Plan of attack:

-          Go short once it break VWAP, Take profit at same exit of previous trade.  However, for context, I was looking at a different stock and flipped back to BA. I saw the price action made a solid move down and I didn twant to miss another big drop and be too extended form the VWAP. So I jumped in immediately. 

Why did you take the trade?:
-          Negative news and gapped down in pre market
-          Saw a bunch of shooting star candles with a variety of volume.
-          The slow stochastic looked close to crossing over to a bearish control   

How did you feel after taking the trade?:
-          Frustrated that I took a FOMO trade

What did you do well?:
- had a stop loss 

What can you improve on?:
-          Keep emotions cool, calm, and collective.
-          Need to go back and look what the price action does when it shoes a bunch of shooting stars/ hammers with little or average volume. Is it a sign of weakness/strength or jus the market makers testing the who’s in control of the market?

 

Chart: 2min,5min,15min

 

2 hours ago, A_aron said:

Date: 1-11-21
Stock: BA
Strategy: Directional
Long/Short: Short
Entry: 202.84
S/L: 203.46
Risk:  0.62

Plan of attack:
-          I was looking for a reversal down b/c BA has had negative news the past few days. [ legal issues and the plane crash]

 Why did you take the trade?:

- BA has had negative news the past few days. [ legal issues and the plane crash]
- gapped down pre-market
- 1 min chart had a large candle with low volume [ anomaly]
-price action broke through the VWAP

 How did you feel after taking the trade?:
-          Lucky. I accidentally exited my entire position instead of partial out. 

 What did you do well?:
-  Entry, taking initial profit over 1R

 What can you improve on?:

-          Look at the spread! Slippage hit me hard with my exit
-          Had tunnel vision, didn’t even see the shooting star prior with very low volume or the candle prior to that one had a large battle between the bull and bears. The bulls came back with some power.
-          Look at the whole picture.
-          The risk was a little higher than I wanted, should of taken a smaller share size.

  Other:

-           Had my plan been a scalp this would have been an excellent trade. However I was looking for a longer reversal play.

Question:
- Is there any signs that a squeeze is about to happen or do you not know until it actually happens?

Chart: 2min,5min,15min

 

Hello Aaron!

1) your first trade was not bad at all. I liked how you used the context to get into this trade. Your accidental cover was also great. Even if you did not mean to get out, it was a good time to take a partial so either way not bad. I liked how tight your R/R was. 

2) I liked how you called out the anomaly as well. Did you consider flipping your position on BA after the second trade?

[Michael Sanchez 53]

53 minutes ago, A_aron said:

Sanchez,

NIO:
I think this was a good trade in terms of set up and your entry on the 1 min chart. Why didn’t you take some profits out at 2R and/or around the 3R mark? What was your exit targets? Why did you choose those?

So, I have a hotkey that predetermines my stop in order to achieve 3R. While I was in NIO, I did reach 2R but I did not get out because my plan was 3R. I know that if I start taking profits early that it is going to create bad habits. Occasionally, I will get out at 2R 1/2 but never at 2R. My plan is to take 3 trades a day. If I lose 2 trades in a row I will lose 2R and that is my max daily loss. However, If I get 3R on one trade and lose 2 trades back to back I still have 1R profit. If I start taking profits at 2R my whole system is going to be thrown off. As stupid as it sounds I would rather break even than get 2R. Hope this answers your question. Thank you. 

[MattfromNZ 55]

5 hours ago, A_aron said:

Date: 1-11-21
Stock: BA
Strategy: Directional
Long/Short: Short
Entry: 202.84
S/L: 203.46
Risk:  0.62

Plan of attack:
-          I was looking for a reversal down b/c BA has had negative news the past few days. [ legal issues and the plane crash]

 Why did you take the trade?:

- BA has had negative news the past few days. [ legal issues and the plane crash]
- gapped down pre-market
- 1 min chart had a large candle with low volume [ anomaly]
-price action broke through the VWAP

 

 

Hey man,

I haven't really studied reversal trades yet, but I am curious about this trade because you made it within the first 5mins. I was wondering if your reversal strategy good for being so close to the open? and why would you use a reversal strategy here instead of an ORB?

Matt.

[MattfromNZ 55]

5 hours ago, Michael Sanchez said:

 

This was a great setup, shame about the execution! I actually had MARA on my list, but dropped it cause there's no shares for short. I wish I had kept it as it was a fantastic 5min ORB (with the ABCD pattern as a bonus!)

[MattfromNZ 55]

5 hours ago, Michael Sanchez said:

Stock: AAPL

Strategy: ABCD

Why did you take the trade?: (Clustering Illusion) I saw a pattern that was not really there

I watched Aiden's ABCD webinar recently and one of the things that stuck with me the most is that the ABCD pattern is a "continuation of a trend". I am still struggling to distinguish real patterns from fake, but this has helped me decide.

[MattfromNZ 55]

5 hours ago, A_aron said:

Date: 1-11-21
Stock: BA
Strategy:  Directional

Sorry bud, another question, what is your directional strategy?

[MattfromNZ 55]

I got 3 ABCD trades here. I am kinda struggling to find good patterns with good risk/reward, what do you guys think?

FCEL, ABCD, $20 risk, +$7.56

GME, ABCD, $20 risk, +$3.07

NIO, ABCD, $20 risk, Break even.

 

[A_aron 27]

1 hour ago, MattfromNZ said:

Hey man,

I haven't really studied reversal trades yet, but I am curious about this trade because you made it within the first 5mins. I was wondering if your reversal strategy good for being so close to the open? and why would you use a reversal strategy here instead of an ORB?

Matt.

1 hour ago, MattfromNZ said:

Sorry bud, another question, what is your directional strategy?

In this instance I say riding the stock  in the opposite direction.[I have seen often that a stock will  break in one direction then reverse in the opposite direction early in the morning. Im still working on the set up and criteria for this play. I apologize I am not using the term reversal correctly.
I didn't consider this a 5 min ORB b/c the first 5 min candle was a doji additionally I don't take ORB with wicky candles. About 45 min later there is a nice 15 min ORB though.  

 

I am still working out the criteria and circumstances for my Directional strategy. It is basically trend trading using volume price analysis. It can be used on short trends or long trends. However its more effective on longer trends than shorter ones. Ill use oscillators and directional studies  occasionally for confirmation. 

[Adam Lewis 64]

2 hours ago, MattfromNZ said:

Hey man,

I haven't really studied reversal trades yet, but I am curious about this trade because you made it within the first 5mins. I was wondering if your reversal strategy good for being so close to the open? and why would you use a reversal strategy here instead of an ORB?

Matt.

I'll post some of my own trades from today shortly as this is now the one strategy I am trying to nail and so far I've done pretty well with it, but check out the fallen angel strategy (there's a tradebook available I think). It's a very short term hold, and more of a momentum / scalping strategy than anything. I'm interested in it (to the point that right now it's all I do!) after noticing the tendency of stocks on my watch list to flush right on the bell, sell for 2 or 3 minutes, find a bottom and then bounce right back up again. If you can find that bottom and keep stops tight, your R:R is really strong. I'll post something shortly showing how I played NIO today and PLUG on Friday last week using this strategy. It's not perfect, a little risky and needs quick thinking.