Pullback on BoeingNYSE:BA has pulled back to the 50% retracement of its most recent move which is also the Ichimoku cloud. Took Vertical Call options through April 215/225
50%retracement
Earnings spike: SLBThe volatile spike on earnings at a key retracement level on NYSE:SLB triggered a long setup to retest the high.
It's a disaster: SRPTThe market teaches traders lessons every day... often times reinforcing them to seasoned traders like myself. I happened to have been in but was out of NASDAQ:SRPT before this disaster today. It's a reminder why you MUST take profits even if sometimes you feel the FOMO after you do...
PM 50%This week I've been watching my scans for signals that fit my strategy. I have not yet seen potential trades that fit my strategy; bullish nor bearish.
Today I got two signals that fit my criteria on NYSE:PM and NASDAQ:LRCX ; shorts. PM is looking to hold a 50% level. LRCX is setting up a potential double top. I'm not yet sure of the market sentiment coming into this year. Shorts in a bull market are obviously a low probability. These two are going to serve as test cases to watch from the sidelines. Depending on if they work or not I will have my first clue of 2021.
RCL for the long termStories aside about a vaccine and return to normal I like the price action of NYSE:RCL . What the price has done is brush up against the 50% retracement level several times this year and finally has broken above it for a week and come back this morning to spike out and confirm it now as support. This presents a great LOW RISK trade because you know where your stop needs to be (below this morning's low).
QQQ Key RangePrice action on NASDAQ:QQQ this week has established a range following the potential false breakout of the past All Time High. This morning's dip touched a level that was the 50% retracement of the prior weeks' move that was also Resistance turned Support. Breaking above 304 or below 298 is going may define the move going into the end of the year.
CRSR Swing ShortWhile I do not think that bullish case on NASDAQ:CRSR is over I did see an opportunity for a swing trade on the lower timeframes this morning.
RCL and DAL BULLISH Recovery StocksSome price action this week got me very interested in stocks that were all the rage through the pandemic trading in 2020. NYSE:RCL is a trade I posted about yesterday that was up 4% on the day today. I like this price action to go more. NYSE:DAL is another stock in recovery that a friend had me look at and it has almost identical price action. He also took a LONG date option and I love it... he's getting PAID FOR PATIENCE!
Interested in Comp/USD at this level.I like what I see on this asset at this level, though I wish there was more price history to validate support because it just recently "bottomed", but we all know that could go out the window on a significant fundamental move or maybe even another push higher by BTC.
Reasons:
1.) I like that it is near bottom of value and definitely in the location where I seek out potentially profitable assets.
2.) It was embedded oversold for a few months and now has emerged and even put a double bottom in, if it remains that way after close.
3.) There is clearly a lot of work to be done on the volume profile, but a return to the 50% level would put us above value and at significant return.
4.) There is a cute double bottom working in price action.
5.) Multiple moving average convergence, YES!
What I would like to see improve: COINBASE:COMPUSD
1.) Would like to see green volume impetus
2.) Would like to see OBV turn up and cross moving average.
3.) Wish I had some support from past price action.
I also like relatively low circulating supply.
*This is for entertainment purpose only and should not be construed as financial or trading advice. DYOR.
Don't tell Schiff but GLD is bearishGot a signal today on the opening bar of AMEX:GLD spiking out at the 50% retracement of November's price action. This sets up a low risk play back to the bottom and the longer term Retracement level of the 2020 price action around 165.28
Where NKLA stoppedI love to find examples of where my favorite technical level works. NASDAQ:NKLA is a great example of a stock respecting the 50% retracement level from its down move back in September.
I didn't play this move but my trade in NYSE:NIO is definitely benefitting from the crash this week in EV. If only we could have seen this coming! See my video below for why I did.
Everyone forgot about AAPLOnce the hype dies down all the hype traders stop looking at the stocks. That doesn't mean there are no more opportunities. Ignore the hype and stay consistent looking for your setups... even and ESPECIALLY when a stock looks BORING! That's the time for opportunity when no one else is looking!
Bitcoin Price Action UpdateI wanted to make a video followup to a post I made over the weekend as BITFINEX:BTCUSD was flirting with a swing timeframe resistance on the 1h timeframe. Price has taken the bullish case by breaking that resistance. I share my thoughts on what this means for the future and if we are going to break that all important past-All Time High or not!
Bitcoin "line in the sand" Resistance WATCH HERE!BITFINEX:BTCUSD has recovered from the recent down move and is NOW sitting at Resistance. The level is the 50% Retracement of the move. So far in the short term price is responding to and respecting this level.
Breaking the level up would be a bullish sign for a retest of the near term high and a possibility of continuing to the ATH test. Failing to break higher and holding here to go down is bearish. WATCH THIS LEVEL!
BYND food stock for food hangoverHope everyone had a great Thanksgiving if you're in the US! What better way to recover from a food coma than to analyze a food stock?
I'm comfortable with traders being bullish on NASDAQ:BYND to retest the 2020 high so long as it holds the post-earnings low. There is clear price action to structure a trade where your risk and target needs to be. So loosen up that belt and relax if you're long!
The Tradesy, my Holy Grail of entry systems in StocksBacktesting my 50% retracement system for Apple stock is a perfect example of how it works.
Drawing my bespoke fib levels from the previous low to the new high gives me my entry point, stop and initial target.
ENTRY 50%
STOP 25%
TP1 100%
Closing (selling) 50% of the initial position at TP1 allows the remaining 50% of the position to be risk free.
There are two methods to manage the trade beyond the initial target:-
Scaling out (conservative) = Closing 50% of the remaining position at each TP.
TP2 (4R)
TP3 (8R)
TP4 (16R)
TP5 (32R)
etc,etc.
Balls deep (aggressive) = Moving the stop to the previous entry price as each new TP is hit, accumulating a large risk free position which will eventually close out as structure breaks down.
The Holy Grail of Entry systemsThrough my research whilst studying Scott Carneys Harmonics methods I devised the 50% retracement system.
This system allows me to enter higher time frame patterns with considerably smaller stops.
Entering at the 50% retracement with a stop at the 25% allows me to create a risk free position by closing 50% at 2R (100%).
I carry out this system on the 1m time frame but due to TV rules on publication can only show it on the 15m time frame.
The 127% level on the chart shows the entry for the 4H Buttefly pattern.
Mt first entry became risk free and hit several targets before being stopped out. This can occur several times before the eventual move happens. Due to the risk free element, and the potential of such a large risk to reward, this is not an issue.
Beautiful Make UpToday I got sent a lot of positive vibes about the methods I've been sharing so I wanted to give back. There are two great setups that a friend found I wanted to share on NYSE:REV and NYSE:EL . I don't know anything about the industry of women's makeup but I know when price action is beautiful!
Both of these had some great around-earnings price action that is a testament to how great trades can be found Before AND After earnings on stocks. STOP BUYING OPTIONS RIGHT BEFORE EARNINGS! The action you want to play is in the weeks BEFORE and AFTER earnings!
What makes price action a Beautiful setup to me is when the 50% Retracement lines up with past price inflections. Highs, lows, and gaps are fantastic to confirm Support and Resistance levels. EL demonstrates this beautifully!
Riffing on price action for $AUDNZDI've taken two positions on FOREXCOM:AUDNZD this week. First a bearish 60m breakout that I captured a little bit of profit but the remainder stopped out. That stop out revealed some fascinating price action at a potential Daily Support level. I really like studying price action such as this and put my thoughts into a video to share!
The power of 50%As I keep mentioning the best Fibonacci level I've found is the simple 50% halfway point. BITFINEX:LTCUSD has demonstrated this beautifully as each impulse wave over the last many days has pulled back to hold its 50% level and continued upward.
Another 50% ExampleThe beauty of studying price action is that a trader can apply their skills to ANY instrument, timeframe, and market. Just as the 50% retracement works in cryptocurrency it of course works in stocks. This happens to be a trade that I was able to catch. It took more than a day to trigger when NYSE:LLY pulled back to the 50% retracement for a 4th time. A very clear level for an entry and set point of risk makes for a great trade off the level!
