Freeform PDF Image Trading Strategy PDF

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Double-tap to enter text Double-tap to enter text Stock selection High-Level Stock Scan Criteria ✓ D1 is breaking resistance on heavy RVOL (20%) ✓ D1 compression breakout Clear pattern ✓ D1 has 2+ days of HA continuation Scanning Process ✓ Is at ATH or ATL (1) Have a scan that finds stocks that meets at least one of the High-Level Day trading Swing trading ✓ Is at DH or DL Scan Criteria. If NONE found, sort all stocks by relative volume and/or Hammer Bull Flag stacked sectors (and check for choppy market) Stock Selection Requirements ✓ Stock has RS/RW to market AND its sector Engulf Head & Shoulders (2) Remove any stock that doesn't meet everything in Stock Selection ✓ Stock has institutional involvement Checklist Tails Compressions ✓ D1 is not gappy, choppy or super extended Stock Earnings ✓ D1 has 1%+ room to move before next support/resistance level (3) View D1 chart’s Stack Cup & Handle valuations growth ✓ D1 breaking resistance on heavy RVOL (20%) - Set alerts for stocks that could be good in the future (if levels break) (VWAP > support/resistance > SMA > Algo lines) - Watchlist those stocks that are ready to trade imminently Fundamentals Interest Market Bull/Bear Analysis SPY & Stock M5 Analysis (4) Do this all day and keep things updated/trimmed Credit Market News & rates !! Bullish divergence last cycle (1OP) calendar events Prepare bull & !! Last 3 stacked candles were green (5) Top 2-4 watchlist stocks are loaded for entry, once conditions align bear watchlists More RVOL on green candles Last defended long candle was green A STOCK IS JUST A Last 3x HA candles were green VEHICLE FOR PLAYING Bottom wicks > top wicks Market read YOUR MARKET BIAS Higher pivot lows Upward price movement Flat/Janky 1OP Compression Tight range = Spreads Unorganized Notes Low daily RVOL Directional move = Options - When play is behaving, give it a treat (add) Downward price movement - When misbehaving, take treat away (reduce Lower pivot highs position) Top wicks > bottom wicks Last 3x HA candles were red - Each day, as you write out your market story, Last defended long candle was red and then see what More RVOL on red candles happens, you will see pretty quickly how often !! Last 3 stacked candles were red you are right or wrong. !! Bearish divergence last cycle (1OP) Entry Checklist ✓ Play follows SPY's trend (M5 for intraday, D1 for Swing) ✓ Play follows stock's trend (M5 chart and D1 green/red) ✓ Stock's M5 chart trend follows stock's D1 chart trend ✓ Entry is above/below all major SMA's ✓ Entry is above/below VWAP ✓ Entry is after confirmed break of support/resistance Price Action (VWAP > support/resistance > SMA > Algo lines) ✓ Entry has 1%+ room to move before next M5 support/resistance level ✓ Entry is on a SPY dip / top Breakouts or Gap-ups: ✓ Entry is on a HA reversal candle (wicks go flat) The cleaner the move, T T T ✓ Entry is on high volume bar (conviction) Options the cleaner the reversal Set alert for the pullback and ✓ Price breaking out of a compression zone buy the dip [M5 RS/RW < 0 and then > 0] ✓ Have Patience (most difficult) If the options are not liquid, we will day trade the stock. We do not want to miss a high probability day trading opportunity just because of poor option liquidity. How did stock react to Options day traders favour weekly in the money options that have a delta greater Stock News With trend line breaks in the past? than.65. When we are swing trading options we favour selling out of the money The larger the range, bullish put spreads so that we can take advantage of accelerated time decay and we the better the R:R on Entry Draw converging lines can distance ourselves from the action. the turn entry (dip) on unbroken candles Lance that have volume Trade Management The BEST trades immediately go Safe to stay in trade Constantly adjust in your favour. if price remains stop to previous bar's Wait for the turn If not, exit and above/below 8EMA lows/highs Sizing re-enter later. Size UP on your Trade 1 share easy-money trades (10x, 20x) until you can prove a new Size DOWN on everything else strategy's edge or don't trade them at all Talk to yourself like you'd This is about becoming your best self talk to a friend and see how good you can be. The numbers are just numbers on a screen in a video game Weekly: 1-page write-up on the easiest opportunities this week & Good Day actions to implement to find more = Mindset YOU got better, not PnL opportunities like them in the future You are not your Performance Weekly: Review your game tape and You don't have to be talented accomplishments or PnL or special. You just have to be evaluate the gaps in your execution what 90% won't be; consistent What is the easiest thing I could have and willing to work for it done today that would have made the The best performers have the most over a long period of time. biggest positive change (1% better) thorough trade analysis (Lance)