Jordan F Profile picture
Oct 20, 2021 25 tweets 6 min read Read on X
I’m a full time day/swing trader for a living.
I’ve learned a lot through my time trading.
Here’s a thread going over my exact trading strategy
As well as some helpful tips/tricks.
👇👇👇
My trading strategy revolves around three things:
1. Supply and Demand
2. Trend
3. Liquidity
All are important and essential for my trade setup.
Supply and Demand: What is it?
Supply and Demand zones are areas of price where institutional buying or selling is taking place. These zones are key because price is likely to reverse at these zones since institutions want to defend or add to their position.
To find these zones, you want to look at the SPEED of price action. Supply/Demand zones are formed when price moves FAST from an area. Look for wicks or long body candles. Image
How to draw zones?
To draw these zones, you take the top of the body or wick of the candle PREVIOUS to the explosive candle and draw it down to the bottom. Extend the zone and there it is. (Knowing whether to use the wick or top of the body will take experience) ImageImage
Where to enter?
Entry should be at the top of the zone with a hard stop just underneath the bottom of the zone. Targets will be based off a multitude of things, some mentioned further. These zones work on all time frames and all stocks, futures, cryptos, etc.
Fresh vs Tested Zones
I am only interested in taking entries at FRESH supply/demand zones. Fresh zones are ones where price hasn’t been tested yet. Look at pics below ImageImage
Gaps
Large gaps in stocks also act as supply/demand zones. If you think about it, it’s essentially the fastest move a stock can have, making them one of the best trades. Here’s a gap fill demand trade I took last week on $WDAY Image
Let’s move onto trend.
Identifying trend is key to making sure you are on the right side of the move. Identifying trend is simple. Zoom out to the largest time frame and see if price is making higher highs (HH) and higher lows (HL) or Lower highs (LH) and Lower Lows (LL)
As you can see, BA is clearly in an uptrend making HH and HL. I only want to be buying at demand zones during an uptrend and selling at supply zones during a down trend. Image
Strong/Weak Lows and Highs.
Strong lows are lows that are able to break the previous swing high structure (BOS). It shows that demand is greater than supply, so bulls are in control. This works the other way as well for strong highs in a bearish market.
Break of Structure vs Stop Hunt
A BOS is a clear break and hold of a previous high. It validates the previous low as a STRONG low, meaning we can look for buys on a pull back toward its demand. A stop hunt is a spike above the high. Usually a wick depending on the time frame.
Look at the pic below. A strong high was caused because a BOS followed it. A weak high was formed because a SH followed it and it failed to Break structure below. This means we can expect price to potentially break the weak high but expect the strong high to hold. Image
IMPORTANT🚨
A strong low/high can only be made if it retraces AT LEAST 50% from the previous swing high/low. If it’s a more shallow retrace, it is not a low/high that I would recognize. I would call that LIQUIDITY $$$. Talking about that next…
Liquidity!
The thing everyone talks about. Liquidity can be found above highs and lows. It’s where retail traders put their stops and where breakout traders use their market orders. Price is ALWAYS reaching for liquidity. It’s like a dog with its bone.
When a low fails to be broken, expect price to reverse to the next high and vice versa. Price is simple. If there are too many buyers holding up a low, price will reverse and go up to a high to find liquidity.
So what exactly is my trade plan?
It’s everything above! I look for long term uptrends and buy at demand zones and vice versa with shorts and supply zones. I look for a CHANGE IN TREND on the smaller time frame for confirmation to buy. THESE IMAGES ARE KEY 🔑 ImageImage
Here is criteria I look for (Bullish scenario):
* Uptrend (Clear BOS)
* Retrace of at least 50%
* Smaller time frame Supply break (Change in trend)
* Smaller time frame retrace at least 50%
Here is typical Trade plan:
1. Entry is at 50% smaller time frame retrace (or demand)
2. Stop below swing low
3. Target 1 is STF swing high (cover 80%)
4. Target 2 is LTF swing high (cover all)
How to select options?
It all depends on time frame but when it doubt, go farther out! This is what I typically do for swing trades.
* ITM/ATM contracts
* 2-4 weeks out
* If Wednesday-Friday do 3 weeks minimum
There are other topics I didn’t go over like Auction market theory, Fair Value Gaps, Market profile, Options strategies, etc. but this is a good mini lesson on what I look for in my trades. Now time for some tips!
Patience and Discipline are the two most important values when It comes to trading. Being able to follow your plan and not forcing trades are key (key emoji)
LESS IS MORE🔑
^ One of the most valuable tips my mentor gave me
Risk/Reward. Almost EVERYONE says to have at least a 2:1 R/R. There is nothing wrong with that, but a 1:1 ratio works just fine. Don’t be greedy and go for 3R, or 4R trades. Find what works for you and TAKE PROFIT.
Withdrawal Profits from your account.
Everyone is trying to turn $1,000 into $100k. When you are starting out, DO NOT COMPOUND. Sizing up takes time and withdrawing profits from your account every week keeps you humbled and stops you from going overboard.
Well, I hope you enjoyed my thread.
Feel free to DM me with any questions!
Likes + RTs appreciated as always.
Ok, LETS PROFIT 🍾
#FT

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More from @FT__Trading

Mar 27
I've spent 6+ months studying and talking with market makers

and learned 2 ways to spot retail vs institutional trading

THREAD🧵
(How to know what's REALLY going on in the market) Image
Institutions control the market

retail is simply being taken advantage of

But in this thread, i'll show you 2 ways to identify what's really going on

Let's dive in 👇🏻
1. Pullback size

Markets are always trending

And trending markets always have pull-backs

But the SIZE of the pull-back is rarely looked at
Read 16 tweets
Jan 9
I've traded for 6 years and tried everything:

- Penny stocks
- Options
- Futures
-Supply/Demand
- ICT

And this 3 step strategy beats ALL of them by a landslide: 🧵 Image
Before we get started, bookmark the tweet above ☝️ so you can come back to this

If you don't, you'll regret it

Let's DIVE IN with step 1 👇🏻
1. Identify a balance zone

This strategy works by identifying consolidation vs expansion zones

Price is either doing 1 of 2 things... Image
Read 15 tweets
Jan 7
It took me 2.5 years to turn a $1k account into a $50k+ account

If I had sized up properly, I could have done it in under ONE YEAR.

Here are 3 signs to know when you should size up:🧵

(and how to do it effectively)
1. Account growth

This one should be simple

The first way to know when you should size up is if your account is growing

The key point is making sure you still have risk management
That means you should risk the same % of your account per trade

If you're risking 2% with a $10k account, that's a $200 risk per trade

If you grow your account to $15k...

You can risk $300 per trade (2% of $15k)
Read 14 tweets
Dec 28, 2023
If you're losing money in options...

You're probably making the same mistake I did to lose $15k

Here's what it is and how I fixed it to become a full-time trader:🧵
Options trading can be very profitable if done right

But can also lead to LOTS of losses

Here's the most stressful part:
You can be right and still lose money

Yep.

You can buy calls, have price drift up from your entry and still be at a loss

Simply because of time decay
Read 15 tweets
Nov 29, 2023
My $10k+ months wouldn't be possible without a list of trading rules...

Here's how to create a set of trading rules in 5 easy steps: 🧵
1. Use a daily stop loss

Capital preservation is key in trading.

You need to make sure your able to trade everyday if the opportunity presents itself

Depending on how much you risk per trade, you'd wanna double it to get your daily stop loss
For example, if you risk 2% per trade then you should stop trading on the day if you lose 4% of your account

Losing 2 trades in a row can easily set you into "revenge mode" and get you to chase setups that aren't there

Make a daily stop and stick with it
Read 13 tweets
Nov 28, 2023
You've been taught the WRONG way to use volume in trading

Here's how to use volume to trade like banks/institutions:🧵
(with examples) Image
We all know the classic volume tips that we were told in the penny stock era...

Wait for a run up, then look for a pullback on LOW volume to get an entry

This isn't how you should be looking at volume...
First, let's start with what do I mean by volume

Volume Profile?

# of shares?

No.

I look at the volume BARS Image
Read 14 tweets

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