Price Action thread, common mistakes, "fake-outs", patterns, etc.
For starters, price action trading is simply trading the concept of highs and lows as pivots for price movement. In an uptrend, a stock continues to make higher highs and higher lows until a HL is breached. In a downtrend, lower lows and lower highs occur until a LH is breached.
Oct 21, 2021 • 5 tweets • 2 min read
20 EMA is one of my favorite indicators. The smaller the time frame it's riding on, the stronger the trend/momentum. When it breaks below on x timeframe, it signals the momo is getting weaker.
I like using the 5, 10, 3 & 1 min frames.
5-10 can be used for your all-day trend.
Regardless of which timeframe you're on, adhere to the momentum of it. If you're using the 3 minute and get a strong close below it, cut the trade and move on. Stick to the plan of whatever time frame you were trading with it on
Jul 31, 2021 • 12 tweets • 5 min read
The largest issue from what I've seen for new traders is determining where to enter trades. Most traders get caught chasing or adding in poor areas and then sell for losses. Here's a thread on some areas where you can enter trades for minimal risk and maximum reward:
1. Master trend lines and micro
Enter on confirmation of the master trendline holding with a stop-loss a few cents below the prior wick lows to ensure you don't get wicked out. You can also build smaller micro-trends inside and use those with similar risk/reward.
$XBIO $NAOV
Jul 17, 2021 • 5 tweets • 1 min read
Something everyone needs to understand is whether there is artificial volume or real volume on a stock. If institutions are behind a move, zones will be respected because there is real demand. Usually when they’re on a ticker, there’s hundreds of million of volume on the day
If it’s a callout by someone on twitter or a chatroom, it’s not real volume and the zones don’t have any REAL demand. Sometimes callouts and artificial volume can lead to real institutional demand coming in, so you have to look at the average volume of a stock and compare it
Jul 4, 2021 • 7 tweets • 2 min read
After hours and premarket trading/algorithms and institutions - some insight. I shared this on MTA voice the other day.
To start, AH and PM trading is wonky as is because traders can manipulate prices to an incredible degree. Most algos and institutional trading turn off during PM and AH, and the volume is MUCH thinner, so larger retail traders can actually drag prices as they wish, to a degree.
Jun 14, 2021 • 32 tweets • 10 min read
Why and how 90% of retail traders lose and how you can join the 10% that win. This is by far the most important thread I've made. I truly hope this helps change your lives.
The contents of this thread will go against almost all conventional trading rules/strategies you may have learned through books and videos, but I'm incredibly confident this is how @MrZackMorris and other great traders trade
May 31, 2021 • 11 tweets • 3 min read
Thread of my threads:
"Reading the Tape" / Level 2 / Time and Sales
No one explains EMAs either, so here are my 9/20 EMA rules. I have to give credit to @MullinsMomentum for introducing me to these. I adopted some stuff from him, and the rest I developed my own way of using them. Here's a thread of how I use them:
As a technical/momentum trader, I use the weekly/daily support and resistances, and intraday, I alternate between the 1 minute and 5 minute charts when executing. I typically use the 5 minute for overall trends and the bigger picture, and the 1 minute for my entries and exits
May 29, 2021 • 20 tweets • 4 min read
Thread on "Reading the Tape" / Level 2 / Time and Sales
The Fintwit community often talks about trading purely off the tape, but no one really explains what that means because it varies for everyone and is tough to put into words. Hence, I thought I'd explain some key things I look for when trading off of it
Regardless of which timeframe you're on, adhere to the momentum of it. If you're using the 3 minute and get a strong close below it, cut the trade and move on. Stick to the plan of whatever time frame you were trading with it on
