🚨 🚨 FAQ Master List for IB🚨 🚨

THREAD OF THREADS 📝

I’ve been getting a lot of DM’s about my trading strategy so I went ahead and created a list of questions and answers for you guys to read through! Reply if I missed a question and I’ll add it to this thread 🔑💰
What exactly is an inside bar chart pattern?

An IB is simply a basing period or a period of consolidation. Taking the break of an IB will bring momentum and interested participants in the market to move price higher or lower based on the break of the specific trigger level.
Which contract and expiration do I take?

I choose ATM option contracts. Getting the same week expiration will have a higher delta and thus greater percent gains, but if you want to reduce risk of theta (time decay), go out to next week’s expiration.
How do I Enter/ What is considered confirmation?

Confirmation can be different from trade to trade, but some of my favorites include spikes in volume, candlestick patterns/wicks indicating buy vs sell pressure, channel breaks, and momentum with structure continuation.
Where is my stop loss?

Stops are tight on the 5-minute time frame. And it depends on the chart - It could be below structure, volume spikes in the opposite direction of the trade, trendline, LOD/HOD, and trigger levels.
What is my target?

Targets are determined based on your stop loss. Ideally you should scale out 50% of your position at 1x, scale out 25% of your position at 1.5x, and scale out the remaining 25% at 2x. Make sure to pay yourself!
What happens if price opens outside the levels?

Let the first 5min candle close and use ORB and take the trade at break of the high or low of the 5min candle depending on if it opened above or below the IB. I sometimes also wait for a retest and confirmation of the level.
How do you pick which IB stocks to put on your watchlist?

I look at previous price action - I avoid stocks that have been consolidating or else fakeouts will occur. I take volume and volatility into account and run highly integrated scanners every night from a master watchlist.
How many stocks do you keep on your watchlist?

I keep no more than 10 stocks. My goal is to get a small piece of the pie, not to trade every movement I see. Remember: quality over quantity!
How do you manage fakeouts?

Fakeouts occur in every trading strategy - your goal is to keep losses to a minimum while letting your wins run. Fakeouts can sometimes be avoided by waiting for a 5-min close of a candle. Make sure to use proper confirmation for entries.
Do you use any indicators like moving averages, BB’s, macd, and RSI?

None of the above - I’m strictly a price action trader so the only “indicators” I need are volume, levels, trendlines, chart patterns, and candlestick patterns. Keep it sweet and simple!
How many contracts do you go in with? What position size do you usually take?

I have a general rule of thumb here - I take a position size big enough to be comfortable with where I won't be nervous if the trade does go against me. Ask yourself: can you hold through a pullback?
Where can I learn more?

Based upon popular demand, I’m putting together a private group - more info to come! I'm really excited about the opportunities this will bring. This will include live callouts, educational content, in-depth charts/plays, and 1 on 1’s. Stay tuned!

• • •

Missing some Tweet in this thread? You can try to force a refresh
 

Keep Current with Elevated Trades

Elevated Trades Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!

PDF

Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

Did Thread Reader help you today?

Support us! We are indie developers!


This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Too expensive? Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Thank you for your support!

Follow Us on Twitter!

:(