1) $AMAM has his own structure which is categorized as explained in watchlist into ssr + high volume premarket.
The fact it does not have any overhead volume resistance lowers the forecast for a short into a 50:50. Then we have to consider the play
2) $AMAM SWITCH BIAS
The first pattern to look for is always a pop and fail at the gate because we are trading #smallcaps. If this level of premarket high holds then you have no reason to short and you have to be able to reverse to long as in the pic shown before.
3) $AMAM POSITION
The main patterns at this point is buying dips. Shorts are trapped at premarket high and lower, volume is high and for $1stocks this means above 800K x minute. This is a 🔑 parameters backtesting 3 years of data for this category. The play becomes a runner.
4) $AMAM LEVELS
You can look at levels on chart but all will be useless as we have now a stock that is on fire, burning and ripping like under combustible explosion. No level IS GUARANTEED to work, especially if we have no high volume area / previous supply. Best is Marry trend.
5) $AMAM HALTS
You will see shorts getting stopped, halts over halts for the high volume, low priced stock and no fills.
You will need to wait for the half level to finish and grab you position and if this will work against you it will be hard to get your stop loss filled.
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Years of research, studying, mentoring traders to find out that majority of traders fail for these reasons.
The top 4 points:
1⃣ Traders are indisciplined. They have a strategy, create a plan but often they won't respect it, getting highjacked by a thought, a friend, a feeling
2⃣ Traders have no patience. They will anticipate a trade because they want to be part of the party no matter what. They will be late and still take the trade because they won't want to miss it as if that's the only opportunity in their lives.
3⃣ Traders will lack confidence. Without confidence a trader cannot use size and confidence is made by having consistency and consistency comes from:
- experience
- backtesting your strategy
- practice