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I’ve made $500k day trading in 2023 so far.
In this thread I’ll explain a simple strategy to find the daily bias and trend before the market opens: 👇
(1/13)
In this thread I’ll explain a simple strategy to find the daily bias and trend before the market opens: 👇
(1/13)
1) What is daily bias or trend?
This refers to understanding the direction of price for a stock in a trading day.
The 3 bias you can have are:
- Bullish
- Bearish
- Neutral (Range)
This refers to understanding the direction of price for a stock in a trading day.
The 3 bias you can have are:
- Bullish
- Bearish
- Neutral (Range)
2) How To Determine The Trend
To determine the trend we are going to use the:
Top Down Approach.
This means we’ll be looking at the stock from different timeframes and perspectives to help choose the best trend outcome for the day.
To determine the trend we are going to use the:
Top Down Approach.
This means we’ll be looking at the stock from different timeframes and perspectives to help choose the best trend outcome for the day.
3) Top Down Approach
This approach has 3 steps to follow:
1st- Check Higher Time Frame
2nd- Determine Key Levels
3rd- Execute on Lower Timeframe
This approach has 3 steps to follow:
1st- Check Higher Time Frame
2nd- Determine Key Levels
3rd- Execute on Lower Timeframe
4) HTF
For higher time frame we’re looking for the stock to continue in the trend it’s going.
To do this we will use market structure.
Ex: Higher Highs & Lows shows the stock will continue upward.
For higher time frame we’re looking for the stock to continue in the trend it’s going.
To do this we will use market structure.
Ex: Higher Highs & Lows shows the stock will continue upward.
5) Key Levels
For our levels you DO NOT want to overcomplicate it and put 1000 levels on your screen.
You can simply use:
- PM high/low
- Previous day high/low
- New high/low that form intraday
For our levels you DO NOT want to overcomplicate it and put 1000 levels on your screen.
You can simply use:
- PM high/low
- Previous day high/low
- New high/low that form intraday
6) Execute
To execute we want to do this on a lower timeframe.
HOWEVER,
Your execution reall depends on YOU.
Ask yourself:
- What are you trading?
- What’s your strategy?
- What timeframe are you the most comfortable on?
Tailor execution to your needs.
To execute we want to do this on a lower timeframe.
HOWEVER,
Your execution reall depends on YOU.
Ask yourself:
- What are you trading?
- What’s your strategy?
- What timeframe are you the most comfortable on?
Tailor execution to your needs.
7) Real Example of Finding Trend
On the higher time frame on $SPY here we can see the stock is making higher highs and higher lows along with making a flag pattern.
This shows this is a great stock to play for the continuation of the long side.
On the higher time frame on $SPY here we can see the stock is making higher highs and higher lows along with making a flag pattern.
This shows this is a great stock to play for the continuation of the long side.
8) How To Enter
For entry we’re looking for the best risk/reward for the long side.
So, we want to mark out our key levels, the red are lows and green are highs.
For entry we’re looking for the best risk/reward for the long side.
So, we want to mark out our key levels, the red are lows and green are highs.
9) Entry
As the trade played out we saw a prominent new high being made that we put a new level at.
The retest to this level is where we are going to enter the trade.
We look for our previous day high level as a profit target and put our stop below the consolidation.
2.94R.
As the trade played out we saw a prominent new high being made that we put a new level at.
The retest to this level is where we are going to enter the trade.
We look for our previous day high level as a profit target and put our stop below the consolidation.
2.94R.
10) Profit
We made $400 on that trade by understanding daily bias and the trend before the market opened!
P.S- I made an entire video on this topic with more explanation and details!
Watch The Video Now: 👇
We made $400 on that trade by understanding daily bias and the trend before the market opened!
P.S- I made an entire video on this topic with more explanation and details!
Watch The Video Now: 👇
In Conclusion,
I hope this thread helped you understand how to find the trend of a stock before the market even opens!
If this helped you:
- Like + Retweet Original Tweet!
- Follow For More Education!✅
I hope this thread helped you understand how to find the trend of a stock before the market even opens!
If this helped you:
- Like + Retweet Original Tweet!
- Follow For More Education!✅
P.S-
If you haven’t heard I am finally starting my very 1st Mastermind!
I’ll go over everything I’ve learned in 5+ years of trading and I’ll be trading live so you can see in real time how I think!
JOIN THE WAITLIST: 👇
scarface-trades.ck.page/00a3bf45c5
If you haven’t heard I am finally starting my very 1st Mastermind!
I’ll go over everything I’ve learned in 5+ years of trading and I’ll be trading live so you can see in real time how I think!
JOIN THE WAITLIST: 👇
scarface-trades.ck.page/00a3bf45c5
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