Thread by @BonesTradez

Creating a Watchlist:

A Thread (Small Accounts included)

The key of creating a watchlist is using @unusual_whales flow.

First, Ill go over how I make a watchlist everyday and then how a smaller account can make their own watchlist.

If you are a visual learner, I linked videos with the part they help to explain

1. Head over to unusualwhales.com

I then scroll down to the hot chains and tickers tab on the left hand side. The reason I use this is because we need volume in order to day trade effectively. I stay on the first two pages of this list and hide etfs

When looking through the flow, I am looking for high volume on OTM strikes with a close DTE. The closer the better (weeklies). These OTM calls/ puts can act as magnets.

Video breakdown and walkthrough of a watchlist:

Smaller Accounts

We can also use the hot chains and tickers tab, but we will have to sort through a lot more data.

So, we are going to click on the "options dashboard" tab, then scroll down to "most active weeklies under $1" from there the remainder of the steps are the same

Smaller Account Videos:

Using the options dashboard:


Building a Small Account w/ options:

2. Look at the charts of potential tickers

A key thing I look for is if the ticker is nearing a support or resistance level on the daily. I also look to see if the ticker has the potential to break out of a pattern or is trading in a pattern

When it comes to selecting tickers, I want to narrow down my watchlist to 3-5 tickers. These tickers have two things in common. Those being high volume OTM contracts with a close DTE, and high quality setups.

Video Explaining more:

3. Breaking down the charts

The next thing I do is break down the charts. I use the 1hr and 15 min to determine key levels for day trades. Before I do this, I am going to use @AdamSliverTrade 20-25% method.

Video explanation of 20-25% method:

20-25% Method

Using the daily chart, find a daily range. Then calculate 20-25% of that daily range to establish about where our triggers should be

Ex: A stock with a $2 daily range would have triggers .40-.50 away from the closing price on each side

On the hourly chart, we are going to look for key levels (support and resistance) that could lead to a big move. Once we have established these levels on the hourly, we then break them down further on the 15 min. I use VPA to help show where higher/lower volume nodes are

A couple of things to remember when looking for key levels are the higher the timeframe, the more value (hourly means more than 15) and a key level should act as both support and resistance. The more times prices hits a level, the more important (this can lead to a bigger move)

Now that I have identified key levels, and used the 20-25% method to get a rough estimate of where my triggers should be, I am ready to set triggers. I use psych levels when setting triggers (.0, .05, .25, .5, .75, etc) because it helps me simplify and interpret the chart

From there, I set price targets and plan out my trade (SL, scaling). This helps me a lot when it comes to managing my risk and executing the play.

Now we should have 3-5 tickers on our watchlist and we are ready to execute the trade.