First things first, scanning through charts and seeing what looks good in either direction. I like to look for a multitude of different things. Lets take a look at this $AAPL chart for reference:
Nice double bottom near $168 and ended up closing green on the day. However I know if $167.50 fails to hold, there is also plenty of downside, so this allows room in either direction. I will then head over to @unusual_whales and check the intraday analysis for $AAPL
Before I head over to Unusual Whales, you must know the other main things I am looking for when playing options other than information provided by UW:
-Tight Bid Ask Spread to minimze Slippage
-Beta > 1 (Volatility)
-Solid ATR
-Solid Chart
I can see for today, the top 4 biggest orders were pretty evenly split on the day, so this is not offering me any one sided bias atm.
I am also checking the most active chains for $AAPL to see what has the highest OI and Volume and if there is any block of calls or puts that really stands out to me. As you can see, the most active chains for the day were calls at a strike ranging from $170 - $175.
This block of calls had a ton of Volume and OI, something I always look for before entering a position in either direction. This is allowing me to see what has the most interest atm.
I will then head over to Historical Flow and see if I can spot any abnormalities within the 7D and 30D call or put volume. Again, this will give me insight into what potential direction the stock may head.
I will then check the 15 and 30K premium flow to see what large scale orders are siding with. As you can see below, the Call to Put ratio is about 75% respectively on 15 and 30k minimum premiums.
I would rather see what big money is siding with over retail. You can check other premium orders, I am specifically looking for larger scale ones. I am also looking for the flow in regards to expiry, not a specific strike. Some may look at specific strike, however i do not.
After I have gathered all the information from UW, I will then create my trigger levels on my charts using a combination of ATR (Average True Range), Moving Averages, VPVR, Psych Levels, Weekly and daily High Low, etc.
This gives me a plan no matter what direction the stock moves in. I will be doing a future thread on how exactly I look for my triggers. But for now, I just wanted to showcase one way I utilize @unusual_whales platform.
• • •
Missing some Tweet in this thread? You can try to
force a refresh
Something to study over the weekend: Low Volume Trend using EMA's. We have seen this quite a few times on $SPY over the course of the past few weeks / months. Extremely low volume trend days where we stair step in either direction almost the entirity of the trading day. (contd.)
You can see over the course of 5-6 hours from 10:45 - close, $SPY traded with very low volume. An entry off confirmation at the 9ema would have given an opportunity to ride the trend almost the entire day.
EMA's are best utilized during trend days, low volume or not. They offer excellent entry / re-entry opportunities with a roadmap for stop loss placement as well. Your EMA's are also there to guide you when letting a position ride and maximizing profit potential.
The following thread will be on a Triple EMA strategy I have been testing for a few weeks and found extreme consistency with: ⬇️
So there are 2 variations to this strategy that I have been testing, a triple EMA cross in either direction, and utilizing these EMA's during extreme trend days for entries and stop placement.
Let's first discuss the triple EMA crosses I have been playing using the 9,20,30 EMA. I am sure you have played around with EMA / MA crosses depending on which you use. I have always used the 9,20 but wanted to add another that was relatively close to both.
The following thread will be on Retest Trading Using Supply & Demand Zones, & why experienced traders use this method: ⬇️
Retest trading is a very proficient strategy when playing around zone breaks in either direction. Waiting for a retest of zone is the "confirmation" we need that either a zone is still valid, or a zone has flipped.
Let's first talk about zone breaks and why waiting for a retest, is much safer than taking a position right away. Whenever a Supply or Demand Zone is broken, it can often be difficult to gauge when we are supposed to enter in either direction.
The following thread will be on how I draw Supply & Demand Zones using multiple timeframes: ⬇️
First things first, it is important to note that there are no restrictions when it comes to which timeframe you draw zones on. Everyone uses different timeframes, these are just the ones that personally work best for me!
We know by now that Supply & Demand Zones are areas within a chart that help us gauge entries, exits, and where "big money" is located. But how do we go about drawing these zones, and what timeframe should we use?
The following thread will be on Trendline Trading & why I think they are the most important thing you can implement into your trading: ⬇️
Trendlines are extremely important when it comes to, you guessed it, identifying trend. They are also extremely important in gauging entries and exits, as well as spotting potential reversals happening in real time.
By definition, trendlines are lines within a chart that either connect swing highs or swing lows, showing current direction in price. These lines are extremely easy to implement while keeping your charts clean and simple.