Obviously, there are more "key levels" to be found on different time frames but imo these are the ones I'm placing most weight on.
(2/10) To put things in perspective, here are a few visual screenshots of my charts with respect to their time frames.
(3/10) Now for a more micro analysis let's take a look at this week's $AAPL intraday price action, most specifically the 172.85 level. Coming into this week 172.85 was an overhead level on my chart dating back to February 15th and 16th.
This is the daily chart.
(4/10) Adding to that, on Thursday of this past week, March 24th, we had our first intraday test and rejection of 172.85 resistance. During power hour we retested, broke, held, and saw that previous resistance turn to new support.
(5/10) Something else to note is during AH on Thursday and Premarket Friday, 172.85 was confirmed as AH/PM support.
(6/10) Friday was by far the most interesting day with respect to 172.85. After the overall market took a hit around 10:50AM, we knifed through vwap and ultimately found support off 172.85. I was really thinking $AAPL would ultimately break to the downside and test 171'ish...
(7/10) But as you can see 172.85 posed as a brick wall which turned out to be LOD.
Upside:
Next level overhead is 176 - Break over & I don't have much till ATH (182.94), maybe 180.30.
Downside:
Break below 172.85 support I think $AAPL sees 170 rather quickly, 168.17 as well
(8/10) Now for some interesting @unusual_whales flow π
Expiration dates targeted:
4/1/2022
5/20/2022
6/7/2022
(9/10) Strikes being targeted - categorized by volume
Puts: 175 strike
Calls: 175 strike
(10/10) Hope you guys enjoyed this thread. Thinking about doing one or two of these every week for a ticker of your guy's choice. Let me know what you think!
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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