Thread by @HappyGTrades

📚EDUCATION THREAD📚

what do i do if it rips past my trigger point on open?

MANYYY people have asked this question, as this is a common occurrence

i answered as detailed as possible, enjoy and learn!😁

there are a few ways i personally play this...

1) immediately buy on trigger break

this is one technique i have done a lot. no matter what, my trigger point will usually be a major daily resistance

if it rips thru the trigger that indeed means that it just ripped thru a major resistance level

just realize you will probably have slap ask it to get in quick enough

this SHOULD NOT be more than a scalp

it is a very common occurrence on open for there to be a huge big green candle followed by an even bigger red

take your fkn profits and run. STOP HOME RUN HITTING

if it does not consolidate and/or bull flag it was fall just as fast

again, GET IN AND GET OUT

due to the increased volatility, the vega and IV% will both be high inflating the contract. once it falls you are trapped and red

2) wait for a retest

this is what i like to call confirmation, if the level is a major daily chart level it is likely that at some point early in the day it’ll come back to test the level

10-11am EST when volume falls compared to open look for retests at key levels or ema dips

this would provide a safer entry since IV is lower and it would technically be a buy off support so you’re not chasing

if retest fails you must cut

according to our rules, if retest passes then a leg up will come

$TWTR ripped thru my trigger here, i actually used rule 1 and scalped it for 65%, if i held through the pullback i would have been red from IV drop

volume dropped at 10am as i said

i entered on the support retest at 10:05

leg up came when retest held, rode it up for 30% move

3) bull flag/consolidation pattern

this requires lots of patience

many times the stock won’t retest all the way back down to the trigger level/major level. now what?

if the stock is doing a true momentum chart breakout, it will form a flag, pennant or desc. wedge

if no consolidation it will likely fall right back down again

i look for about at least 4 candles on the 1 min chart consolidating at the highs that it ripped to

on the 5 i look for at least 1 red candle with a nice lower wick before a further rip up

PICTURES BELOW

in $F below you can see the 2 red 5 min candles that i look for, followed by rip up

in $GE you can see the 1 candle on 5 min that i look for with lower wick before rip up

3rd pic you can see the consolidation of at least 4 candles on 1 min chart before a rip up

4) done take the play

there are countless plays on there

to fomo into a trade on open about 5 mins into the day makes absolutely no sense to me

there are so many tickers and plays out there with so much time left in the day!

feel free to DM any questions!