LLY
Ely Lilly: Testing the Bear Algorithm (Entry 1)I've developed a bearish algorithm/screener that screens for stocks with identified selling pressure / trend followed by a dead cat bounce that is likely to fail - which we will attempt to short. I'm trying to combine trend following and VFI trading principles for the coming bear market.
Components:
1. 200 EMA: below current market price (this is so we don't get stuck in short squeezes and such)
2. 50 day moving average above current market price (we want past clearly identified weakness over a sufficiently long period)
3. 10 day moving average below current price (we want a stock that has attempted to rally from the lows)
4. CMF<-0.1 (we want to screen out bottoming patterns such as Inverse Head and Shoulders whenever we can)
5. Moving Averages Ratings: Buy, Neutral, Sell - we don't anything with strong MA momentum indicators, and we don't want to be short squeezed.
6. Market Cap, Price, volume requirements
Bearish flagI always try to present the charts in a simple comprehensive format to prevent any confusion.
This is just my technical view, neither a fundamental comment,nor a recommendation to trade..!
Please review my track record and calculate the odds for yourself..!
You’re likes and comments encourage me to continue this.
Stay tuned great live stream and quality content videos coming soon..!
11:30 InflectionsYears ago when I was learning to trade and studying under my mentor he told me that day trading was best done in just the 90 minutes from 10:00am EST to 11:30am EST. This makes a lot of sense.
The 9:30am to 10:00am opening time is very volatile for stocks. Traders are rushing to open or close positions before many have made their decisions to put orders into the book so price can swing wildly. This could present opportunities if one were on the right side of them but finding consistency within this time gap is more challenging.
Around 11:30am is getting close to lunch hour but more importantly when the European markets close. The logic is that trading is about to decrease as traders take a break. More importantly though with the close of Europe there will be less volume coming from across the pond.
In my Discord I have often been asked "when should I take profit???" which is a question I always avoid. Every trader is responsible for their own trades. When this question comes up though I will share the wisdom of my years which is "look for an exit around 11:30am". "Not always" but "often enough" this is where price will tend to do an inflection. It is a simple timing mark to watch and it does in fact work as a good guideline.
NYSE:LLY was a good example of this. The 11:30am timing element was amplified by the fact that it was also a Friday meaning not only was Europe closed for the day but also closed for the week. LLY is an international company so there was undoubtedly international trading going on with the stock.
Now that you've seen it remember to take note of this timing element in your own trading!
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!
LLY | GAP | Quick Profits | $15 GAP | Very Short Term |LLY will just bearish in the short term, while it fills the gap near $140.
1. Our first confirmation is that the 21 moving average is very far away from the current price at $160. We can see a sharp pull back from the resistance level at $160.
2. The fib retracement has reached 1.161%, which is a massive gain for bulls forcing them to take profits.
3. LLY could fill the gap in the near terms, or come back in the future to give a chance to buyers from $140 - $155 to acquire the stock. If the market doesn't allow the buyers, then is considered somewhat inside trading.
4. Looking at the RSI, we see a straight line up, and we call this a rubber band effect since there are high chances of it snapping back.
I would wait until the end of the market to do your best.
$LLY Oversold - Bullish Hammer on Daily Chart$LLY Oversold - Bullish Hammer on Daily Chart
Pennant formed on shorter time frame charts. Bounce move could be imminent.
Short term target - $148.00
Could quickly see $152.00 if upper down-trend line is broken.
Note: Meant to be educational, not investment advice.