1. Kane Capital x Unusual Whales @Kane_Capital's own @DiamondxTrades with a great video on how to trade options using Unusual Whales flow.
2. The Greeks
Understanding the greeks and time decay is a crucial component to being a successful options trader. Here's a great video that puts things into perspective.
3. Supply & Demand Zones
A great TA strategy to have under your belt.
4. Unusual Whales Intraday Options FLow Setup
Another great @Kane_Capital vid shedding some more light on Unusual Whales' filter flow option.
5. Option Volatility & Pricing - Sheldon Natenberg
An unreal must-read that will open your eyes to the world of options trading.
In honor of the New Year commencing, here is a tweet of my favorite threads I posted in 2022. Everything from options basics to charting & candlesticks to @unusual_whales flow, and much more. I hope this helps benefit your 2023 trading!
Although candlestick patterns don't tell the whole story, they can be a great tool to identify short-long term reversals in price action. Knowledge is power! Let's get into it.
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Here are a few of the basic candlesticks patterns everyone should be familiar with & will go further in-depth in this thread.
A+ Setups
An A+ setup to me might be different than what an A+ setup is to you. I like to have 3-4 pieces of conviction to deem something as A+. Examples include:
- Candlestick Patterns
- Charting Patterns
- Supply/Demand Breaks
- Gap Fill Strat/Peaky Strat/Golden Goose etc.
Building a broad watchlist of stocks that I'm interested in trading is a critical part of my preperation for the day. Here's a thread on how I create my watchlist.
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A watchlist is a small to medium list of stocks that align with your guidelines for solid trading setups.
Before the market opens I like to have at least 2-3 tickers with potential setups I will be watching throughout the day.
Pretty simple analysis in my eyes. Going to break it down with a few charts across a few different timeframes.
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Head & Shoulders - Daily Time Frame
Once the 100-102 neckline was broken it was game over. Also, very nice BHG setup on the retest of that neckline November 15th
Rounding Top into Head & Shoulders - Weekly Time Frame
Could've seen this move coming hence the rounding top posted on the weekly time frame. Once the 144 neckline was broken it was a clear move to 100 measured move count.
H&S Peak formed at the previous rounding top neckline
Before placing a trade I always have ideas about my sizing, entries/exits, stop levels & more. By formulating a risk management plan I decrease my risk of losing unnecessary amounts of capital and increase my chances of profitability.
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Risk = the chance that an investment's actual gains will differ from an expected outcome or return.
I like to look at risk as the amount of money you could lose on a trade. If you predetermine how much you are willing to lose, you are able to measure what "loss" means to you.
Determining a Stop Loss:
1. Max pain per trade (Dollar Figure) 2. Key level/area on the chart
Here's a thread on critical trading tactic that I take very seriously. Without consistent uniform sizing, I have noticed, successful trading becomes harder. It's important to come up with a position sizing plan that works for you.
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Position sizing refers to the guide that dictates how much working capital you allocate on a single trade.
Key components to consider:
- Risk Tolerance
- Account Size
- Type of Trade
- Trading Goals
Risk Per Trade:
Everyone is different. Everyone's goals are different. The first question I like to ask myself is how much money am I willing to risk per trade.
I usually choose one or two options: 1. Fixed Amount 2. Percentage of Portfolio