Ascending triangle on $SPY (3 min), paper traders try practicing playing the breakout (wait for 5 min close above line for confirmation). Super popular setup you should know.
BTW this won’t always break above, could break below which is a good time to short or buy puts for more experienced traders
It broke under, which means could see drop to 446. Under 446.40 would be confirmation because that was the last higher low
until then, it’s still in an uptrend for the day
scalped for 10%, closed below line for a 30 cent downside move, no emotions, just traded the chart and cut when it got near 446.40 because that’s the last lower high
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This is mainly for SHORT term option plays, not 1 month+ option swings, as I don’t play those. DM me if you have any questions, and enjoy as always:)
I’m going to start off saying two things, one, I do NOT and never have used scanners for options, because I mainly play the same 20ish tickers for options, BUT I’m going to teach you how to using finviz.com
So, if you are using finviz.com, you WANT to play options on mid/large cap companies with a lot of volume everyday, because if there’s no volume on these tickers you are playing options on, the spreads are going to be wonky and may not even move, that’s why I play
they will flush (meaning people take profits when market opens) and bounce in the first 30 minutes ending up in a 50%+ run. This is where you have to watch volume, if you notice a TON of premarket volume (meaning the premarket volume is already HIGHER than yesterday’s total
volume), AND then the volume triples at market open, that’s usually a good sign and results in a huge run throughout the day (not all the time but a good probability).
I have a little secret for you though, if you are new and this seems like all too much, follow people like @notoriousalerts@Mini_Tradez (you will find others) who post alerts throughout the day. They usually are already on top of the stocks that day
I’ve been getting TONS of dms asking how I find my plays/setups and I’m going to give you the most honest/helpful answer I have. This is for option and shares plays.
When I first started trading, I was like you guys, I would always DM/reply to people asking how they found their plays and I would get a TON of different answers. Overtime, this is what I learned:
This is going to be a lot to explain, and I’ll try to organize this the best I can, so try and bear with me. It will probably take two threads to explain all the different options to find stocks, so the next thread will be linked at the end of this one.
🚨EXTRA BONUS THREAD OF STUDY MATERIAL/MOTIVATIONAL TWEETS I LIKED:🚨
This will also include some other awesome threads I’ve read in the past that are SUPER useful
Awesome advice from @singlesdoubles about stop losses. Reasoning, levels like this are where beginners would normally set stop losses because it’s usually under a psych support, and that’s where market maker try to stop loss people out before going up again
At this point, you know tons. You have put the time in studying, you are either a hard worker or a smart kid in school lol, but some of you guys (not all) are still not seeing success. This is the level where you would learn/know options.
Before I get into the psychology part of trading, which in my opinion is the most important part of trading, I’m going to go over some options stuff. If you don’t know what options are, you’re going to have to watch a couple videos to learn them first.
Before thinking about trading options, I definitely recommend paper trading them first on Think or Swim (TD Ameritrade) because they can be VERY risky. I would also put 2% or less of your account in them when first starting to play them on your actual account
Alright, you know a lot at this point . You are a master at supply and demand, know support resistance, know the indicators you like/use, and can identify trendlines.
I’m going to be talking about volume in this thread and at the end of this, you’re going to realize that price action is good to use, but price action + volume is the GREATEST combination you can ever have in trading
Volume, or volume price analysis, is the one of the most important skills to know in trading and you should definitely drop a follow to @Brady_VPA as he is the volume master where I learned everything regarding volume from.