NVIDIALong
Trading around PreMarket Levels
The PreMarket Level strategy is a beginner friendly strategy designed to use the initial formation of a daily candle before market open as reference point for day trades.
It works best off of open and is able to utilized in a ranging/chop market as well as in a trending market. I.E. it can be used to trade reversals AND breakouts.
Pre 10AM we use the 3Min chart, Post 10AM we use the 5Min chart.
The strategy is simple. As price approaches a PreMarket level, we use the overall direction for the day + the bias from the 10/50 system to make a prediction as to how price will react. If we want the breakout, we will wait for a 3/5min close outside of the range to enter. THE STOP LOSS BECOMES A CLOSE IN THE OTHER DIRECTION. For highest probability, trade the break & retest. Both the initial breakout and the break/retest are shown here in this NVDA chart.
Similarly, if we are expecting a reversal we will look for price to touch the levels that set the range but NOT close outside of it. Here, THE STOP LOSS BECOMES A CLOSE ON THE OTHER SIDE OF THE LEVEL. Expect reversal, see PML touch, go long, stop out if it closes under PML.
Profit targets are simple. We use recent key levels/zones, previous day high/low, and HOD/LOD for breakout targets. We use the open price, opposite premarket level, and HOD/LOD for reversal targets. Additionally, intraday levels can be used if enough data is there.
Very simple and very effective when executed correctly however the stops MUST be respected.
It works best off of open and is able to utilized in a ranging/chop market as well as in a trending market. I.E. it can be used to trade reversals AND breakouts.
Pre 10AM we use the 3Min chart, Post 10AM we use the 5Min chart.
The strategy is simple. As price approaches a PreMarket level, we use the overall direction for the day + the bias from the 10/50 system to make a prediction as to how price will react. If we want the breakout, we will wait for a 3/5min close outside of the range to enter. THE STOP LOSS BECOMES A CLOSE IN THE OTHER DIRECTION. For highest probability, trade the break & retest. Both the initial breakout and the break/retest are shown here in this NVDA chart.
Similarly, if we are expecting a reversal we will look for price to touch the levels that set the range but NOT close outside of it. Here, THE STOP LOSS BECOMES A CLOSE ON THE OTHER SIDE OF THE LEVEL. Expect reversal, see PML touch, go long, stop out if it closes under PML.
Profit targets are simple. We use recent key levels/zones, previous day high/low, and HOD/LOD for breakout targets. We use the open price, opposite premarket level, and HOD/LOD for reversal targets. Additionally, intraday levels can be used if enough data is there.
Very simple and very effective when executed correctly however the stops MUST be respected.
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