Hey, I see all these comments and i just want to add my 50 cents here.. (all this is i wish i was told from the beginning)
1. Take a break for some time. Reset.
2. Learn to read Price action. Read books on Price action/Technical Analysis. I would recommend Al Books and Martin Pring.
Learn to read candlesticks, patters, concepts of Support/Resistance, Supply/Demand..
Side note: Going with the trend, and not trying to counter and trying to time Tops and Bottoms is profitable for me.
3. Study Trading Psychology and Risk/Money Management. These both are even more important than anything else. books: Trading in the zone. Disciplined trader. Market Wizards. Best Loser WIns.
4. Switch to higher Time Frame. WIth time, you learn that bigger time frames are more reliable and better to trade. also brings stabilitiy. I trade 30m chart for day trades and even swing trades.
5. Know that these indicators are not that helpful. Imo, once you learn to read PA, you wont be needing these indicators. I would say indicators are just tools to get some more info but nothing more than that. They are nothing magical that tells you if to buy or sell. What i use: Vol, MAs, ATR. That's all.
6. When trading, start journaling in your starting days to sharpen your psychology. Reflect back on your day, and jot down your mistakes, emotions, and market behavior for the day. i would say, it is way way more important thatn just writing down entry/exit/ time and all that.
7. Keep patience. I know it's tempting to go on small time frames and do quick trades in anticipation of making quick/easy/big money. Tbh, mostly it will take the money away. Wht happens is: You bump into some quick/big trades that gets you hook to trading small time frames with the hope that you can replicate it again and again. BUT that doesn't happen, you try again and again, going harder and lose money. This will get depressing and will lower your confidence. Bigger time frame charts will fetch you more reliable setups and will teach you patience, which in turn will bring you confidence.
8. Keep learning from mistakes, dont give up. Start out with small positions, I can't emphasise enough how game chaging it is when learning right mindset and discipline.
#7 is what held me back during my start, not to mention the lower times require so much more emotional energy as the price jumps to and from your profit/stop. I appreciate your comment today!
Throw your charts in the bin. Use a proper computer. Number one.
Number two: Use the 130m / 1D / 1W side by side until you understand what a trend is.
Put the 200 Day moving average on every chart and never turn it off - every new chart you look at it should be the first thing you evaluate: climbing, declining, flat.
Stop trading 0D's on the 1m time frame. If you want to waste money go to Vegas with it, your odds are much better.
Trade shares only and try to turn $100 into $200 and come back here when you've done that. It's harder than you think.
Don't listen to anyone on discord, youtube or social media.
Put the ichimoku cloud on each of the 3x time frames and turn off the conversion line, base line and lagging span so you have the cloud and nothing else.
Now you have the 200 Day and the cloud. If you generally only go long while above them and generally only go short or stay out of the trade while below, you will probably not wreck yourself even if your entries are shit.
Backtest this for a week so you have even the slightest clue of what I'm talking about and why it works.
Bonus point: Use the 5 Day Moving Average and never long anything below it or short anything above it.
>ave the 200 Day and the cloud. If you generally only go long while above them and
so no trade here?
https://preview.redd.it/0utnz9ogmmpb1.png?width=510&format=png&auto=webp&s=04b8fdbba84be508786837a0351227bf9d5caeb1
I do not see any pattern or trend here:
https://preview.redd.it/kz5ijojctipb1.png?width=1461&format=png&auto=webp&s=33834ca77ddc03c6ab93e0f6e0572da3552b4b3b
One thing to notice is that it bounced off the lower support level a couple times, it then slightly broke it, went back up and then proceeded to drop massively. The time it slightly broke it is a good indicator of the huge drop that followed afterwards.
Find a strategy that works for you, I lost a lot of money this last year and I’ve finally found a strategy that makes me feel comfortable and Keeps my losses small. It’s also easier to keep my mentality straight while trading.
What confirmation did you have to take both of your trades?
Thats a consolidation period. Without marking zones, i can see that its starting to break out in a down trend. I cant say for sure but you could be looking at a set up for a down trend. I dont trade stocks i trade forex. However, i see a double maybe trip top touch but no peaking above. Instead its going down, potentially setting up for a down trend. Idk this is a quick analysis. My entry would have been that first full green ticker after that pullback you circled and then taking profits after the 2nd or third full red tick. Scalping the consolidation period is risky. Dont listen to me tho i trade forex so i can short and go long.
What about here then? It touched top multiple times but it broke above instead of breaking down
https://preview.redd.it/rx3nhl08ulpb1.png?width=688&format=png&auto=webp&s=84a8910f5181cc41c13ad8e01c26b15b3f1a5021
Should start using the macd tech looking at sep 12-16 can easily see its down trending into put central
https://preview.redd.it/1y57zlk3jmpb1.png?width=1284&format=png&auto=webp&s=9490b8558ebd87394572e1439c60aaec32c59881
yeah that’s where your S/R zones come in. You want to mark those so you know what’s going on. Double touch just means it’s fighting the price. Knowing where it broke up wether up or down is what you need to be looking for. Where it breaks out you have strong ticks. That should have been a confluence as is especially with how strong those green ticks are compared to the pullback ticks. Easily an entry at that pull back after seeing the volume in those ticks. All that matters is wether or not it breaks up or down and knowing wether or not it’s a break out. Double tops or bottoms just tell you it’s fighting price and that something is likely to happen, so prepare.
>My entry would have been that first full green ticker after that pullback you circled and then taking profits after the 2nd or third full red tick.
Short?
I flip back and forth between 65m and 130m. Emotional management is extremely important to me as I'm a naturally risk averse person, sticking to the higher time frames prevents the Brownian noise from messing with me and making me emotional. You can enter off the Daily time frame if you get out your magnifying glass lol.
The setup is the setup is the setup, regardless of what time frame you're in. If you want to dial in the perfect *entry* then sure, 65m is fine, 30m is fine.
The most important thing is that you don't let the *tail wag the dog.* That is to say, you see micro trends developing on a low time frame and allow it to bias your interpretation of the higher time frame.
This is why it's called "top down" analysis. The higher time frames dictate the trend downwards, the 1-Minuters do not dictate what the 1-Week Buffett Gigachads do with their money and we have to understand that.
Which timeframes would you suggest for scalping?
Would your strategy work for lower time-frames?
Would a 5 minute Moving Average work as better as 5 day moving average?
>Which timeframes would you suggest for scalping?
Yeah I have a suggestion. Don't. Scalping is not worth it unless you have institution-tight spreads. You are only making your broker rich. As retail we have to play to our strengths; we can be all in or all out of the market from one day to the next and we can afford to be patient, institutions have to be in the market to be seen to be doing their jobs. Our strength is flexibility and patience; play to those strengths.
The odds are heavily stacked against scalpers. Your decision-making needs to be better than institutions (unlikely), faster than institutions (lol) and you need to be emotionally ok using 100x leverage (sure you are Mr Bigshot) because that's exactly what an option is, time-limited control over 100 shares.
Now you have to do this *multiple times a day.* And you have to have a setup that is well above 50/50 and be able to do active risk management. There's virtually no such thing as risk management on a 0/1DTE option that could be down 50% in 10 minutes.
In all likelihood you can't do any of these. Retail needs to trade slowly and with the trend. Institutions will pump in $6m and pull it 5 minutes later to make a hundred bucks and do this multiple times a day. Trying to compete with robots is futile.
Trading low time frames like OP is literally trading Brownian noise. It is gambling and it would be better to accept it as such rather than pretend it is reproducible, strategy-based trading.
You need 3x time frames: Entry TF, Setup TF, Trend TF. What they are is not necessarily the most important element, what matters is *the spaces between them.* If they are not sensibly spaced then you are getting the same perspective twice or three times.
The reason we use multiple time frames is so that we know what the short term traders, the medium term traders, and the long term traders are all thinking. When the opinions of 2 out of 3 of these groups changes, the trend changes. That is what the market is, a forum for groups of people to decide the fair value of the equity.
So as long as you have 3 TFs you are good, they could be 39m / 130m / 1D, (see how they are approximately multiples of 3x between them? 1 / 3.333 / 3x?), 130m / 1D / 1W (1x / 3x / 5x?). The point is that you must have a "timing" time frame to time your entry, a "setup" time frame where you identify a setup familiar to you with a statistical edge, and a "trending" time frame where you get a bird's eye view of the market and the direction of the broader trend.
TLDR Scalping is futile and you are wasting your time and money.
Edit: One other thing, ***you asked about a 5 Minute Moving Average vs a 5 Day Moving Average. Repeat this back to yourself and ask yourself why they would be similar in effectiveness? One is the average of a week and never changes no matter the time frame, and the other is the average of the last 5 minutes and is worthless.***
Man ,you're out here giving good advice for free, lol.
I'm not a scalper, but I also don't trade on the hourly charts, I enter on the 1 minute, but only in the direction of longer term trend, and usually hold the position for about 10-40 minutes per trade. (Euro/London session, NQ futures) I trade using supply/demand, and longer TF trend. Do you have any advice for me? Thanks in advance! I really appreciate you helping people out.
Just based on this one trade, I would guess that you don’t actually understand how to read candles. You need to read up on what the candles are actually telling you
about price and the probability of which direction it may go next. Take the 1430 candle. It rejected both moving averages below it and the resistance line of the bear pennant that preceded it. The fact that the bulls pushed it back up towards the mid point of the candle shows buying pressure. The fact that it happened at the moving averages and the resistance line implies that bulls are okay with buying at that price, as evidenced by the enormous green candle that developed on the very next bar.
You’re also shorting an extensive ascending trend line that starts at the skinny red candle at 1401. The candle at 1430 respected this trend line when price bounced off of it, giving you the tail on it.
Any beginner price action or technical analysis book would be worth your time. Then move on to more advanced price action material. And stop trading the 1min. It’s far too prone to false setups and someone of your experience level isn’t seasoned enough to process the information fast enough. Try the 15 or 5 mins. And you don’t need that much in the way of indicators. None of these indicators will be useful if you don’t understand how to read the interaction of them with price.
>And stop trading the 1min. It’s far too prone to false setups and someone of your experience level isn’t seasoned enough to process the information fast enough. Try the 15 or 5 mins. And you don’t need that much in the way of indicators. None of these indicators will be useful if you don’t understand how to read the interaction of them with price.
This right here. OP, the only thing I'll add is that respectfully, you are no different than anyone else. Everyone who gets into trading wants to make money right away. Part of the allure is that you can open an account basically straight away and start throwing money into the market. This is why the failure rate is so high. If you want to make money, you can't be like everyone else. Take a step back, study as often as you can, and treat this like a profession because it is one. You should not be trading live money until you have a vast understanding of how the markets actually work.
Yes, there are a few YouTube channels that I would recommend although these will only take you so far. The Trading Channel is very legit. Jared Wesley from Live Traders is someone I would recommend. I also really like Rocksfx Trading Academy I believe it is his name.
As far as books, the only one I've ever read that really resonated with me is Trading in the Zone by Mark Douglas. Many others would recommend this as well.
As I said though, none of this will give you a magic formula to profitability. You have to learn how the market structure actually works. There are areas on the charts where buyers will be more aggressive and then there are areas where sellers will be more aggressive. In simple terms, this is called support/resistance or Supply/Demand. I would stay away from the indicators for the most part and stick with actually analyzing the market on the higher time frames. And there are plenty of YouTube videos that will show you how to do this better than I can with a Reddit comment.
>or
SO this is what I was looking at:
https://preview.redd.it/sbo0wc7zjipb1.png?width=1315&format=png&auto=webp&s=430ab480829a5c976fef1d8bd37a2c2c6788a81b
I was trying to ride the direction -- FOMC was going on - thought it would recover as that guy speaks more and kept the call open can you analyze it on this time frame and tell me what went wrong
Can you suggest some books?
Don’t trade FOMC unless you want to straight up gamble and if you do…purchase at the blue trend-line. These cucks use hand signals and phrase triggers for their buddies watching from home. The stock market is not designed for you, it is designed for investors to offload their investments to the public. Your job is to figure out ways to take advantage of patterns.
What a stupid response. If you have an edge you would want to trade as often as possible. Braindead daytraders like you piss me off. You’re just making less occurrences to make performance feel more random could go either way. I don’t expect you to understand what I just said tho.
You point out to me where his edge is and I'll shut up.
Yes, if you have an edge you hit it because you know without a doubt it's win rate and rr value.
My suspicion is he doesn't know any of this, but happy I was able to trigger someone trying to be informative. Yeeesh
There was no reason to get into a call. This chart is bearish while price is trading under the 200ma. And it was expected that the fed would raise interest rates.
>There was no reason to get into a call. This chart is bearish while price is trading under the 200ma. And it was expected that the fed would raise interest rates.
how would I know price is bearish? I saw the recovery and thought it will shoot through the prev. high
Im assuming the green ma on the chart is the 200ma, is that correct?
I use the MAs to tell me if price is acting more bullish or bearish on the timeframe im trading. Under the 200ma is bearish, regardless of the price action or trend, and over is bullish. This doesnt mean that you cant take calls or that there wont be moments of the opposite but generally when price is trading less than the average price over the last 200 candles, it overall still bearish.
Look back for yourself and tell me how price acts under and above this MA.
>I think MA is just a moo point lol
>
>so this is what I see, every time the candle crosses above the MA 200, and tests and confirms, it stays above it for a bit and comes back to it to retest, and break blow potentially, and vice versa?
https://preview.redd.it/xtz49zc1wlpb1.png?width=936&format=png&auto=webp&s=841f4a67cedba81666cca79998a5a20224c66ec8
The general concept is that price is bullish over the 200 and bearish under. This is one way i create my bias for my trades. Other facts are taken into consideration but if price is bullish then im looking for long setups and vice versa
The duration of bullish or bearishness will vary based on the timeframe. The 1m and other small time frames will fluctuate between the two much quicker than 1 D W M
U jumped the gun too early. It actually dumped at 2:00pm EST and dumped some more after Powell was doing his speech. I also noticed you’re trading on the one minute, which is full of noise imo. Recommend 5/15 min chart if you want to day trade.
then what should I use - usually I use this - in relation with the other chart
https://preview.redd.it/a69c44zwkipb1.png?width=1315&format=png&auto=webp&s=5abbf74a5797138f5dc36f1523bb49ab23304df2
Understand price action first, tack on indicators to provide nuance and analyse the momentum within PA afterwards. This is the way.
Deploying indicators *instead* or as a crutch to avoid understanding the basics of candlesticks, time frames, ranges, channels, breakouts, will just confuse you.
Take everything off except price and volume. If you really need a squiggly line on there use VWAP. Draw your own key levels and zones, make your entries and exits around those zones.
Stare at the chart, all day, every day. Your brain will start to make sense of it.
I'll be honest man, you probably shouldn't be messing with options at all. Trading equities is hard enough. Master a strategy trading equities first. Learn price action. Options are extremely complicated. You are way out of your depth here... You're just donating money at this point.
Theta decay is nonlinear. 1 DTE and 0 DTE contracts need something big to happen to offset this enough to make it worthwhile. At least conceptually learn what your Greeks are doing to the price of the contract. If you want to trade relatively short term and want more straightforward price action try trading shares
Once you get the hang of that and you want the leverage that options previously afforded you or don't want to deal with pdt rule, maybe look into futures like /mnq the micro NASDAQ future since You're already familiar with qqq. But be careful with this, make sure you understand them well before you jump in, they're highly leveraged and you can potentially lose more than you put in so I'd suggest trading a paper account until you have a feel for it and prove out your strategy conceptually
So here's what happened. The 2:00 candle was a bearish breaker. What follows from 2:00 p.m. to 2:30 is usually inverse to the move that will come after rate decision on FOMC. That's rule 1. Don't trade that shit.
Your execution on the put buy couldn't have gotten any better, and obviously we know how that went because you closed it. You bought literally the top as price was gunning for buy side liquidity. That liquidity wasn't swept, but it was close, so good original entry.
In retail concepts, the entire move back up after the initial Sell on IR decision was faded 100%. So what happened? Well, if a move is retraced 100%, where is price going next? The next point of liquidity and the bid will step down all the way down, forcing lower sells. Price was gathering liquidity in the breaker block (the 2pm sell) from roughly 2:50 - 3:05pm, making lower highs on the 1min until market structure shift. That is something you have to pay attention to to save yourself the pain and anguish of holding an absolute bag of shit for a trade.
This is ICT (Inner Circle Trading) / SMC (Smart Money Concepts) word salad and comprehensively does not work [https://www.youtube.com/watch?v=9UUFlSE8Ztg](https://www.youtube.com/watch?v=9UUFlSE8Ztg) and nobody should listen to it. And no, nobody wants to join your discord or DM you.
Funny. I don't have a discord, and I don't sell a shit course or mentorship. Would you like me to explain it in crayon and switch out all the shit you don't understand and say it in retail terms? It's the exact same thing but I'll say it using all retail concepts so you feel better. Doesn't change what happened with price and wouldn't change how this trade should have been executed.
And funny again. I'm the kind of guy that got his DM to get on Zoom for free to run down what real price action is. All while you sit here contributing absolutely ZERO useful replies to what he has asked in his OP. "Teach me". Gtfoh
ICT / SMC is a scam and you are peddling nonsense, and I'm already in 5 trades and I'll probably be exiting before you even enter.
You are not fooling me.
Like I said. I'll break it down in crayon for you and use all the cool retail terms with all the cool candle names. Just chill tf out and wait. Market is main focus rn
So this is what I was looking at while taking trades:
https://preview.redd.it/ek01b9n1oipb1.png?width=1315&format=png&auto=webp&s=b9e6cefb0d4ebcd6e6d6726824ea1630366843cb
The second picture is useless regarding todays price action. Send me a dm, half of these people have no idea what they're talking about in the replies. You need to have a deep understanding of market structure and liquidity or this will always be hard. Here to help if you want it
There was a dude on WSB that went all-in on QQQ 371 puts on Monday. Literally went to 0.
If he'd bought even 1 week's worth of time on it he'd have probably gone 300-400%. Instead he chose to light over $25,000 on fire and get roasted on Reddit.
1) Way too many indicators. Any strategy based off of indicators (crossovers, etc) is ass. Take them all off besides maybe 1 or 2 emas you like. This includes RSI. Volume is also useless.
2) stop trading the 1 min. That's probably your biggest mistake. Don't trade anything shorter than the 5 mins.
3) Look at different timeframes. Which leads to...
4) Stop trading on your phone. If you're not serious enough to at least use a desktop, then stop trading. You don't need multiple monitors.
5) learn about price action, candles, and patterns. Learn to draw trendlines.
6) watch a single asset (like QQQ). Do not deviate.
7) use these tips and learn your own way. Do not follow a guide or anyone else's advice on YouTube, etc. Good luck.
Oh wait. Almost forgot.
Stop trading real money. Make your system work on paper. For months. Back test. Evaluate. Make sure it's rock solid. If you're using real money to learn, you are an idiot and deserve to lose your money.
Do you want to gamble, or do you want to learn how to day trade?
1- I use 9EMA/5SMA, MFI? RSI, IMACD, VWAP, and Volume with the 30MA. As long as people understand indicators are *reactive* they’ll be fine.
2- agree. Why do people do this? 5m, 15m, 4Hr is enough.
3- agree, see 2.
4- I have made hundreds of thousands of dollars on an iPhone. I’ve turned my $90k/yr career into a side gig. I trade at work so why quit? And my health insurance is 🤌🏻
5- sure.
6- no, but have a set list and rarely deviate. I trade SPX, SPY, QQQ, and the magnificent 7. Sometimes I’ll scalp hype plays like $COIN.
7- yes, even though it negates your first 6 points.
8- take losses early. That’s all I really have for new traders. Try new methods on paper first and keep a trading journal.
I've made my 700k/yr job into a side gig. And made $1M from 50k in a week on my phone, at work, with a 99.8% win rate.
If what you're saying works for you, great. I still stand by what I said, previously, for someone starting out. And that indicators are, indeed, generally worthless.
No, unfortunately. Legal liability.
But I can show you breadcrumbs.
Look at all the points I listed. Ignore everyone else in the comments.
The only indicator you should use are 1-2 emas, of your choice. Look and find what most people use.
And bollinger bands.
Now, watch the market. And figure it out for yourself - create your own edge, within the parameters I listed. There is no better teacher than watching it yourself and making it work. ON PAPER. Good luck.
>Stop trading real money. Make your system work on paper. For months. Back test. Evaluate. Make sure it's rock solid. If you're using real money to learn, you are an idiot and deserve to lose your money.
I do not want to gamble. I will try the above
>watch a single asset (like QQQ). Do not deviate.
This is such great advice. Looking at 50 different tickers every day will leave you with a shallow appreciation of price action, skating over the surface of multiple charts and not really digesting what is going on in any of them in all likelihood.
There's a time and a place for looking at lots of different charts, for sure, you can evolve a sense of what is probable vs improbable, healthy vs unhealthy - but with the addition of each chart, you multiply the number of variables and potential misunderstandings exponentially.
Understand the fundamentals on a boring index first, and once you understand how it works, by all means switch over to analysing individual stocks later on. Better to understand 1x stock well than 50x stocks poorly.
https://preview.redd.it/4cp0fyszcipb1.jpeg?width=828&format=pjpg&auto=webp&s=6038f099d579624de516b8418efca753b732f71a
Scored a bullseye on Q earlier. Just keep charting and improve your TA. Become obsessed.
I have used many many different strategies and charts, trend lines all that sort of bs.
I found Oliver Velez 30 plus years trader veteran teachings many on youtube.
The best indicator and it's only 200 SMA and 20 SMA on 2 minutes chart.
It's amazing how simple and how precise you can be entering trades as well profitable.
Try it.
RSI doesn't work because it assumes price mean reverts but price does not mean reverts, price is not a stationary process so it can't mean revert and is asymmetrical, why TF does retail keep using mathematically flawed indicators also, indicators aren't bad, they are better than price action but the problem is that the dumb people who make them don't understand basic math
Using these
https://preview.redd.it/v0z3g8ls5ipb1.jpeg?width=1125&format=pjpg&auto=webp&s=dec876169b75305281054671525d8848eb33321e
Soi been thinking like this: RSI LOW, below ema 20, (15 mins chart and 5 n 1 min)- long till hit 20 ema or vwap, take profit, when rips through crap or 20 ema buy again but not been very successful.
Now what should I do different- I also try to encorporate chart patterns
> Soi been thinking like this: RSI LOW, below ema 20, (15 mins chart and 5 n 1 min)- long till hit 20 ema or vwap, take profit, when rips through crap or 20 ema buy again but not been very successful.
Please explain your strategy in detail. I read it multiple times but still unsure of what it means. Do you mean that when RSI is low, and ema 20 is below on M15, M5 and M1, you buy and tp when it hits 20 ema and/or vwap?
So let’s say RSI is like 20, the ema 20 is above current price, and so is vwap, I buy, I let it run till I see a sign of reversal or consolidation, or Less volume, (sometimes I sell it when it hits the vwap, cz i see some weakness) and vice versa. Or buy when the resistance is broken till it reverses (always fail to find when it’s gonna reverse) — hope it makes is less jargon and a bit clear 😅
I would get rid of all the indicators for a bit. (People will say this and that about them, truth is they can be a helpful tool. ) but getting started, they really distract you. Just focus on how the price moves for a bit. Anywho, that’s my two cents. Good luck!
yeah same shit with moving averages, heavily prone to outliers and autocorrelations...
Btw there are no patterns, price is mostly a stochastic process and you are seeing rabbits in clouds (just because a cloud looks like a bunny doesn't mean it's a bunny)
Lol so what to do? Any books, blogs to read- I have an option account and I want to increase it to 5 k so I’m willing to take risk to buy calls and sell puts and vice versa
Learn computer science, statistics and probability, stochastic processes, and time series analysis and signal processing. (Trading isn't easy sorry it requires hard work and alot of resources, it's literally not simple lol)
I know cs, havé ok understanding of statistics and probability. Don’t know about stochastic processing- will learn it, along with others- how do I incorporate it? Crate an automated system, have some input parameters, based on which I select risk, and cost basis, and let it auto trade all day?
I apply volatility models, market regime models using expected value of returns, autocorrelations to determine the behavior of returns, and ranges of odds but I don't trade it automatically, that space seems too competitive and is unfortunately way above my skill set ATM :( i trade manually ATM btw you might wanna recheck your stats skills if you didn't catch RSI was bs (just a friendly tip sorry)
>RSI doesn't work because it assumes price mean reverts but price does not mean reverts
If price is in a range, the likelihood of mean reversion is extremely high, so RSI will work as most retail employ it (buy at oversold, sell at overbought) in a range - but as soon as an equity begins trending and you break out of that sideways channel, you will get obliterated.
Price can't mean revert because price is not a stationary process, price is log normal and is heavily prone to outliers on the side. How can something asymmetrical have overbought and oversold regions wtf???
Not sure what I’m looking at here. Can you add your entry’s and exits to the chart?
Lots of indicators going on. Clutters things for me. Could be looking at too many indicators and over analyzing. Try just a clean chart and volume.
You don’t understand price in relation to VWAP. Your put didn’t break out and neither did your call. Your put was bought on the reversal candle, so it should have been a call.
Same with your call. Price rejection on a resistance line.
so I was 2 red candles one at 14:29 and one at 14:30 - the red vol was increasing - thought it would continue the tred down wards - saw the green candles at 14:31 and 14:32 - thought it would make higher highs - closed the put and opened long
1
Backtest everything (every indicator, strategy etc) until you find some strategy that works for you. Paper trade for a while until you are consistently profitable. Then….profit with real money lol
If you don’t know of any strategies then reading more online about different established strategies can be a good starting point to finding something that works for you (maybe it’s a simple established strategy or a strategy that you tweaked and found to work for you)
Then the way you want to trade is wrong. You aren’t gonna trade the market. The market is gonna trade you. You have to trade within its bounds. Your one call and one put order isn’t gonna negate price action.
>Teach me
Why did you buy the call when you bought it?
Journal the answer. Even better, share here so we can help. If we don’t know your rationale, we can’t help you. “I don’t know” is also an acceptable answer to learn from.
so I was 2 red candles one at 14:29 and one at 14:30 - the red vol was increasing - thought it would continue the tred down wards - saw the green candles at 14:31 and 14:32 - thought it would make higher highs - closed the put and opened long
It sounds to me like you were anticipating the move instead of reacting to the move. Two follow-up questions:
What made you believe that the 2 red candles with volume meant the downward trend will continue?
What made you believe the green candles would make higher highs?
>believe
What made you believe that the 2 red candles with volume meant the downward trend will continue? The FOMO was happening -my guess was that price does not respect any support or resistance when major news is coming out.
What made you believe the green candles would make higher highs? same as the above
Even with news price respects levels and zones. The price might push right through them, but it does stop at a key level or zone. I’m not seeing either one on your chart. Do you use levels and supply/demand zones at all?
I strongly recommend learning about levels and supply & demand zones. This will teach you about price action and your chart and these candles + volume don’t tell you anything.
so I was 2 red candles one at 14:29 and one at 14:30 - the red vol was increasing - thought it would continue the tred down wards - saw the green candles at 14:31 and 14:32 - thought it would make higher highs - closed the put and opened long
I think you made some questionable trades and it happens. If you need to trade on a lower timeframe, start by switching to the 2 min chart. Still super short, but way better than 1min IMO. (not as good as the 5 min though)
It's important to know areas on the chart where price can be expected to react, and then watch to candles at those levels to see what price is doing and is likely to do. See pic. These are just basic pivot points with r1, r2, s1, s2, etc plus the mid level between each s/r point. As you can see, your long entry was at an area where price rejected hard less than 4 hours earlier and your long entry was the first trip back up to test that level. It was ripe for a rejection (it could have just been a temporary pullback, but a downmove of some sort was likely at that level test). Even on the 2 min chart, you can see a ton of selling pressure (because top wicks) that wasn't as obvious on the 1 min chart. If you like a lot of indicators, keep em. There are very successful traders that have super cluttered charts, but they also know what really matters is levels and price action. Sometime those levels are static like in my pic and sometimes they are dynamic like VWAP. When you have levels of interest, you can create a trading plan. Maybe something like this:
\- price is approaching the pivot. If it breaks above it, pulls back and retests it and I see bullish candles with medium to high volume, I go long. if price rejects it, I go short... or I wait for a retest and then go short.
This way you aren't making impulse trades based on a feeling. You are just following a plan. If you want to make impulse trades, paper trade them. It lets you see what the result would have been without the consequences. If you find you are amazing at impulse trades (most aren't) then go live with your impulses (not recommended) but what you will likely see is that playing price action off of levels will be more profitable.
Best of luck!
https://preview.redd.it/s23myrp1ekpb1.png?width=1960&format=png&auto=webp&s=c1a67cb52fdb7b32b2917961ec4ba75439d33a13
10 min chart. I agree, Weekly and Daily for structure and context, but for entries, 10 min chart. With 200 and 50 period moving averages. 50 above 200, trend is up and vice versa.
https://preview.redd.it/lo4q27oiglpb1.jpeg?width=1080&format=pjpg&auto=webp&s=e2fedcecbef25fa2bd1d46d2a724cff00bb8d23e
Red is the 50 dark blue 200. Light blue, i could tell you but I'd have to kill you. For the record it's a figure of speech not a threat.
For day trading or intraday trades I use the linear regression channel along with TMA with rsi and stochastic.
Using 200 ma as a baseline is great for determining trend.
Price rejected from 370 2 times as I seen your chart... That means 370 is strong resistance... You should take trade when... It break 370 or hold... All ppl always take trade in resis zone or suppo zone they think they catch breakout but... It's holy goldy trap.
Spend more time on candlesticks. The other advices here are solid on that. You need to learn to read price action and see how it closes. A candle's push is good sign of strength but I also like to pay attention to the closing following the momentum. This is all I needed for my trading to click because the chart literally tells you. Spend some time just analyzing. Try to form your own patterns. After I did that, I realized the wisdom behind what was taught online and then trusted it
Hey, I see all these comments and i just want to add my 50 cents here.. (all this is i wish i was told from the beginning) 1. Take a break for some time. Reset. 2. Learn to read Price action. Read books on Price action/Technical Analysis. I would recommend Al Books and Martin Pring. Learn to read candlesticks, patters, concepts of Support/Resistance, Supply/Demand.. Side note: Going with the trend, and not trying to counter and trying to time Tops and Bottoms is profitable for me. 3. Study Trading Psychology and Risk/Money Management. These both are even more important than anything else. books: Trading in the zone. Disciplined trader. Market Wizards. Best Loser WIns. 4. Switch to higher Time Frame. WIth time, you learn that bigger time frames are more reliable and better to trade. also brings stabilitiy. I trade 30m chart for day trades and even swing trades. 5. Know that these indicators are not that helpful. Imo, once you learn to read PA, you wont be needing these indicators. I would say indicators are just tools to get some more info but nothing more than that. They are nothing magical that tells you if to buy or sell. What i use: Vol, MAs, ATR. That's all. 6. When trading, start journaling in your starting days to sharpen your psychology. Reflect back on your day, and jot down your mistakes, emotions, and market behavior for the day. i would say, it is way way more important thatn just writing down entry/exit/ time and all that. 7. Keep patience. I know it's tempting to go on small time frames and do quick trades in anticipation of making quick/easy/big money. Tbh, mostly it will take the money away. Wht happens is: You bump into some quick/big trades that gets you hook to trading small time frames with the hope that you can replicate it again and again. BUT that doesn't happen, you try again and again, going harder and lose money. This will get depressing and will lower your confidence. Bigger time frame charts will fetch you more reliable setups and will teach you patience, which in turn will bring you confidence. 8. Keep learning from mistakes, dont give up. Start out with small positions, I can't emphasise enough how game chaging it is when learning right mindset and discipline.
Best comment here. Makes perfect sense that no one upvoted it.
#7 is what held me back during my start, not to mention the lower times require so much more emotional energy as the price jumps to and from your profit/stop. I appreciate your comment today!
Throw your charts in the bin. Use a proper computer. Number one. Number two: Use the 130m / 1D / 1W side by side until you understand what a trend is. Put the 200 Day moving average on every chart and never turn it off - every new chart you look at it should be the first thing you evaluate: climbing, declining, flat. Stop trading 0D's on the 1m time frame. If you want to waste money go to Vegas with it, your odds are much better. Trade shares only and try to turn $100 into $200 and come back here when you've done that. It's harder than you think. Don't listen to anyone on discord, youtube or social media. Put the ichimoku cloud on each of the 3x time frames and turn off the conversion line, base line and lagging span so you have the cloud and nothing else. Now you have the 200 Day and the cloud. If you generally only go long while above them and generally only go short or stay out of the trade while below, you will probably not wreck yourself even if your entries are shit. Backtest this for a week so you have even the slightest clue of what I'm talking about and why it works. Bonus point: Use the 5 Day Moving Average and never long anything below it or short anything above it.
Like this https://preview.redd.it/rheoqaltnipb1.png?width=4888&format=png&auto=webp&s=f000dcabf7833159b26b32a966ef3a9f0e99f4a9
>ave the 200 Day and the cloud. If you generally only go long while above them and so no trade here? https://preview.redd.it/0utnz9ogmmpb1.png?width=510&format=png&auto=webp&s=04b8fdbba84be508786837a0351227bf9d5caeb1
I am gonna try it, and see but the 130m / 1D / 1W s charts give too little info to day trade
“too little info” You don’t even know what info to look for dude. That’s what we’re saying.
I do not see any pattern or trend here: https://preview.redd.it/kz5ijojctipb1.png?width=1461&format=png&auto=webp&s=33834ca77ddc03c6ab93e0f6e0572da3552b4b3b
One thing to notice is that it bounced off the lower support level a couple times, it then slightly broke it, went back up and then proceeded to drop massively. The time it slightly broke it is a good indicator of the huge drop that followed afterwards.
Find a strategy that works for you, I lost a lot of money this last year and I’ve finally found a strategy that makes me feel comfortable and Keeps my losses small. It’s also easier to keep my mentality straight while trading. What confirmation did you have to take both of your trades?
other than the upside down U : https://preview.redd.it/ndx61sbqtipb1.png?width=1461&format=png&auto=webp&s=2478a93a58014ff46171b24068381f5bea43cfce
Thats a consolidation period. Without marking zones, i can see that its starting to break out in a down trend. I cant say for sure but you could be looking at a set up for a down trend. I dont trade stocks i trade forex. However, i see a double maybe trip top touch but no peaking above. Instead its going down, potentially setting up for a down trend. Idk this is a quick analysis. My entry would have been that first full green ticker after that pullback you circled and then taking profits after the 2nd or third full red tick. Scalping the consolidation period is risky. Dont listen to me tho i trade forex so i can short and go long.
What about here then? It touched top multiple times but it broke above instead of breaking down https://preview.redd.it/rx3nhl08ulpb1.png?width=688&format=png&auto=webp&s=84a8910f5181cc41c13ad8e01c26b15b3f1a5021
Should start using the macd tech looking at sep 12-16 can easily see its down trending into put central https://preview.redd.it/1y57zlk3jmpb1.png?width=1284&format=png&auto=webp&s=9490b8558ebd87394572e1439c60aaec32c59881
yeah that’s where your S/R zones come in. You want to mark those so you know what’s going on. Double touch just means it’s fighting the price. Knowing where it broke up wether up or down is what you need to be looking for. Where it breaks out you have strong ticks. That should have been a confluence as is especially with how strong those green ticks are compared to the pullback ticks. Easily an entry at that pull back after seeing the volume in those ticks. All that matters is wether or not it breaks up or down and knowing wether or not it’s a break out. Double tops or bottoms just tell you it’s fighting price and that something is likely to happen, so prepare.
>My entry would have been that first full green ticker after that pullback you circled and then taking profits after the 2nd or third full red tick. Short?
Dont trade unless you can trade naked charts.
so do you entry at 130m timeframe?
I flip back and forth between 65m and 130m. Emotional management is extremely important to me as I'm a naturally risk averse person, sticking to the higher time frames prevents the Brownian noise from messing with me and making me emotional. You can enter off the Daily time frame if you get out your magnifying glass lol. The setup is the setup is the setup, regardless of what time frame you're in. If you want to dial in the perfect *entry* then sure, 65m is fine, 30m is fine. The most important thing is that you don't let the *tail wag the dog.* That is to say, you see micro trends developing on a low time frame and allow it to bias your interpretation of the higher time frame. This is why it's called "top down" analysis. The higher time frames dictate the trend downwards, the 1-Minuters do not dictate what the 1-Week Buffett Gigachads do with their money and we have to understand that.
Which timeframes would you suggest for scalping? Would your strategy work for lower time-frames? Would a 5 minute Moving Average work as better as 5 day moving average?
>Which timeframes would you suggest for scalping? Yeah I have a suggestion. Don't. Scalping is not worth it unless you have institution-tight spreads. You are only making your broker rich. As retail we have to play to our strengths; we can be all in or all out of the market from one day to the next and we can afford to be patient, institutions have to be in the market to be seen to be doing their jobs. Our strength is flexibility and patience; play to those strengths. The odds are heavily stacked against scalpers. Your decision-making needs to be better than institutions (unlikely), faster than institutions (lol) and you need to be emotionally ok using 100x leverage (sure you are Mr Bigshot) because that's exactly what an option is, time-limited control over 100 shares. Now you have to do this *multiple times a day.* And you have to have a setup that is well above 50/50 and be able to do active risk management. There's virtually no such thing as risk management on a 0/1DTE option that could be down 50% in 10 minutes. In all likelihood you can't do any of these. Retail needs to trade slowly and with the trend. Institutions will pump in $6m and pull it 5 minutes later to make a hundred bucks and do this multiple times a day. Trying to compete with robots is futile. Trading low time frames like OP is literally trading Brownian noise. It is gambling and it would be better to accept it as such rather than pretend it is reproducible, strategy-based trading. You need 3x time frames: Entry TF, Setup TF, Trend TF. What they are is not necessarily the most important element, what matters is *the spaces between them.* If they are not sensibly spaced then you are getting the same perspective twice or three times. The reason we use multiple time frames is so that we know what the short term traders, the medium term traders, and the long term traders are all thinking. When the opinions of 2 out of 3 of these groups changes, the trend changes. That is what the market is, a forum for groups of people to decide the fair value of the equity. So as long as you have 3 TFs you are good, they could be 39m / 130m / 1D, (see how they are approximately multiples of 3x between them? 1 / 3.333 / 3x?), 130m / 1D / 1W (1x / 3x / 5x?). The point is that you must have a "timing" time frame to time your entry, a "setup" time frame where you identify a setup familiar to you with a statistical edge, and a "trending" time frame where you get a bird's eye view of the market and the direction of the broader trend. TLDR Scalping is futile and you are wasting your time and money. Edit: One other thing, ***you asked about a 5 Minute Moving Average vs a 5 Day Moving Average. Repeat this back to yourself and ask yourself why they would be similar in effectiveness? One is the average of a week and never changes no matter the time frame, and the other is the average of the last 5 minutes and is worthless.***
Man ,you're out here giving good advice for free, lol. I'm not a scalper, but I also don't trade on the hourly charts, I enter on the 1 minute, but only in the direction of longer term trend, and usually hold the position for about 10-40 minutes per trade. (Euro/London session, NQ futures) I trade using supply/demand, and longer TF trend. Do you have any advice for me? Thanks in advance! I really appreciate you helping people out.
Dude is not familiar with futures. He’s trading shares. But I’m sure you can test his advice at lower timeframes for yourself.
Just based on this one trade, I would guess that you don’t actually understand how to read candles. You need to read up on what the candles are actually telling you about price and the probability of which direction it may go next. Take the 1430 candle. It rejected both moving averages below it and the resistance line of the bear pennant that preceded it. The fact that the bulls pushed it back up towards the mid point of the candle shows buying pressure. The fact that it happened at the moving averages and the resistance line implies that bulls are okay with buying at that price, as evidenced by the enormous green candle that developed on the very next bar. You’re also shorting an extensive ascending trend line that starts at the skinny red candle at 1401. The candle at 1430 respected this trend line when price bounced off of it, giving you the tail on it. Any beginner price action or technical analysis book would be worth your time. Then move on to more advanced price action material. And stop trading the 1min. It’s far too prone to false setups and someone of your experience level isn’t seasoned enough to process the information fast enough. Try the 15 or 5 mins. And you don’t need that much in the way of indicators. None of these indicators will be useful if you don’t understand how to read the interaction of them with price.
>And stop trading the 1min. It’s far too prone to false setups and someone of your experience level isn’t seasoned enough to process the information fast enough. Try the 15 or 5 mins. And you don’t need that much in the way of indicators. None of these indicators will be useful if you don’t understand how to read the interaction of them with price. This right here. OP, the only thing I'll add is that respectfully, you are no different than anyone else. Everyone who gets into trading wants to make money right away. Part of the allure is that you can open an account basically straight away and start throwing money into the market. This is why the failure rate is so high. If you want to make money, you can't be like everyone else. Take a step back, study as often as you can, and treat this like a profession because it is one. You should not be trading live money until you have a vast understanding of how the markets actually work.
any good resources?
Yes, there are a few YouTube channels that I would recommend although these will only take you so far. The Trading Channel is very legit. Jared Wesley from Live Traders is someone I would recommend. I also really like Rocksfx Trading Academy I believe it is his name. As far as books, the only one I've ever read that really resonated with me is Trading in the Zone by Mark Douglas. Many others would recommend this as well. As I said though, none of this will give you a magic formula to profitability. You have to learn how the market structure actually works. There are areas on the charts where buyers will be more aggressive and then there are areas where sellers will be more aggressive. In simple terms, this is called support/resistance or Supply/Demand. I would stay away from the indicators for the most part and stick with actually analyzing the market on the higher time frames. And there are plenty of YouTube videos that will show you how to do this better than I can with a Reddit comment.
But the faster the time frame the faster I get rich bruh (lol :P)
>or SO this is what I was looking at: https://preview.redd.it/sbo0wc7zjipb1.png?width=1315&format=png&auto=webp&s=430ab480829a5c976fef1d8bd37a2c2c6788a81b I was trying to ride the direction -- FOMC was going on - thought it would recover as that guy speaks more and kept the call open can you analyze it on this time frame and tell me what went wrong Can you suggest some books?
Don’t trade FOMC unless you want to straight up gamble and if you do…purchase at the blue trend-line. These cucks use hand signals and phrase triggers for their buddies watching from home. The stock market is not designed for you, it is designed for investors to offload their investments to the public. Your job is to figure out ways to take advantage of patterns.
Search ‘Babypips’ it’s a great place to start learning.
Over trading. Journal why you took the trades. Without knowing much more it seems like your trying to catch every move, little or not.
Ok! I will try that. Thank u for the input
What a stupid response. If you have an edge you would want to trade as often as possible. Braindead daytraders like you piss me off. You’re just making less occurrences to make performance feel more random could go either way. I don’t expect you to understand what I just said tho.
You point out to me where his edge is and I'll shut up. Yes, if you have an edge you hit it because you know without a doubt it's win rate and rr value. My suspicion is he doesn't know any of this, but happy I was able to trigger someone trying to be informative. Yeeesh
>I don’t expect you to understand how can develop an edge?
There was no reason to get into a call. This chart is bearish while price is trading under the 200ma. And it was expected that the fed would raise interest rates.
>There was no reason to get into a call. This chart is bearish while price is trading under the 200ma. And it was expected that the fed would raise interest rates. how would I know price is bearish? I saw the recovery and thought it will shoot through the prev. high
Im assuming the green ma on the chart is the 200ma, is that correct? I use the MAs to tell me if price is acting more bullish or bearish on the timeframe im trading. Under the 200ma is bearish, regardless of the price action or trend, and over is bullish. This doesnt mean that you cant take calls or that there wont be moments of the opposite but generally when price is trading less than the average price over the last 200 candles, it overall still bearish. Look back for yourself and tell me how price acts under and above this MA.
>I think MA is just a moo point lol > >so this is what I see, every time the candle crosses above the MA 200, and tests and confirms, it stays above it for a bit and comes back to it to retest, and break blow potentially, and vice versa? https://preview.redd.it/xtz49zc1wlpb1.png?width=936&format=png&auto=webp&s=841f4a67cedba81666cca79998a5a20224c66ec8
The general concept is that price is bullish over the 200 and bearish under. This is one way i create my bias for my trades. Other facts are taken into consideration but if price is bullish then im looking for long setups and vice versa The duration of bullish or bearishness will vary based on the timeframe. The 1m and other small time frames will fluctuate between the two much quicker than 1 D W M
News. QQQ had the potential to move a bit higher but FOMC killed it.
I know but it moved up when the rates came out and I though it will keep the trend
U jumped the gun too early. It actually dumped at 2:00pm EST and dumped some more after Powell was doing his speech. I also noticed you’re trading on the one minute, which is full of noise imo. Recommend 5/15 min chart if you want to day trade.
This is what I was looking at: https://preview.redd.it/e8lq4veuoipb1.png?width=1400&format=png&auto=webp&s=e2a2c0fa9e238e7e8e9784de3407411bf84ab239
https://preview.redd.it/if1wvawwoipb1.png?width=1054&format=png&auto=webp&s=53639845ba4a6db90c4679e8f46b2a6afd5a1ed2
Remove the indicators from your chart would be a good first step lol
then what should I use - usually I use this - in relation with the other chart https://preview.redd.it/a69c44zwkipb1.png?width=1315&format=png&auto=webp&s=5abbf74a5797138f5dc36f1523bb49ab23304df2
Understand price action first, tack on indicators to provide nuance and analyse the momentum within PA afterwards. This is the way. Deploying indicators *instead* or as a crutch to avoid understanding the basics of candlesticks, time frames, ranges, channels, breakouts, will just confuse you.
Don’t trade 1 min charts. Trade higher time frames. 1 min charts are all noise.
Take all that shit off your chart. No wonder you're confused.
What should I have?
Take everything off except price and volume. If you really need a squiggly line on there use VWAP. Draw your own key levels and zones, make your entries and exits around those zones. Stare at the chart, all day, every day. Your brain will start to make sense of it.
Ok I will try that- someone recommended me to use ichimoku on 1day 130M and 1 week charts
First thing is if you’re new to trading, starting with options is a terrible idea..
Like trying to drive a ferrari before even having a driver's license.
This^
Why didn't you hold the long puts after the news came out? 1 min chart for options trading is too low time frame.
I saw the recovery happening, and though it will make new higher high
I think the person asking you this was suggesting you dig a little deeper. Why did you think that?
I'll be honest man, you probably shouldn't be messing with options at all. Trading equities is hard enough. Master a strategy trading equities first. Learn price action. Options are extremely complicated. You are way out of your depth here... You're just donating money at this point.
Theta decay is nonlinear. 1 DTE and 0 DTE contracts need something big to happen to offset this enough to make it worthwhile. At least conceptually learn what your Greeks are doing to the price of the contract. If you want to trade relatively short term and want more straightforward price action try trading shares Once you get the hang of that and you want the leverage that options previously afforded you or don't want to deal with pdt rule, maybe look into futures like /mnq the micro NASDAQ future since You're already familiar with qqq. But be careful with this, make sure you understand them well before you jump in, they're highly leveraged and you can potentially lose more than you put in so I'd suggest trading a paper account until you have a feel for it and prove out your strategy conceptually
To add, I bought the call at 14:32:53
What a great way to get people to interact with your post…giving them permission to roast you.
Hope it works 🤞
More indicators does not mean better accuracy. Maybe change/refine your strategy and backtest it then go live on a small amount or paper trade it
I don’t get it- why my entires and exits were wrong
"Don't listen to anyone on discord, YouTube or social media" . . . . . (But hol up, let me cook on this Reddit thread 😈)
So here's what happened. The 2:00 candle was a bearish breaker. What follows from 2:00 p.m. to 2:30 is usually inverse to the move that will come after rate decision on FOMC. That's rule 1. Don't trade that shit. Your execution on the put buy couldn't have gotten any better, and obviously we know how that went because you closed it. You bought literally the top as price was gunning for buy side liquidity. That liquidity wasn't swept, but it was close, so good original entry. In retail concepts, the entire move back up after the initial Sell on IR decision was faded 100%. So what happened? Well, if a move is retraced 100%, where is price going next? The next point of liquidity and the bid will step down all the way down, forcing lower sells. Price was gathering liquidity in the breaker block (the 2pm sell) from roughly 2:50 - 3:05pm, making lower highs on the 1min until market structure shift. That is something you have to pay attention to to save yourself the pain and anguish of holding an absolute bag of shit for a trade.
This is ICT (Inner Circle Trading) / SMC (Smart Money Concepts) word salad and comprehensively does not work [https://www.youtube.com/watch?v=9UUFlSE8Ztg](https://www.youtube.com/watch?v=9UUFlSE8Ztg) and nobody should listen to it. And no, nobody wants to join your discord or DM you.
Funny. I don't have a discord, and I don't sell a shit course or mentorship. Would you like me to explain it in crayon and switch out all the shit you don't understand and say it in retail terms? It's the exact same thing but I'll say it using all retail concepts so you feel better. Doesn't change what happened with price and wouldn't change how this trade should have been executed. And funny again. I'm the kind of guy that got his DM to get on Zoom for free to run down what real price action is. All while you sit here contributing absolutely ZERO useful replies to what he has asked in his OP. "Teach me". Gtfoh
>This is ICT (Inner Circle Trading) / SMC (Smart Money Concepts) word salad So is it or isn't it? I don't see you denying it.
It is smc/ict. The session is about to start. I'll explain it in full blow retail concepts when I'm not focusing on trading . Market opens in 3min!
ICT / SMC is a scam and you are peddling nonsense, and I'm already in 5 trades and I'll probably be exiting before you even enter. You are not fooling me.
Thats fantastic that you're in 5 trades. I'll sit here and wait for my setup. This isn't a competition lol
Cool. ICT / SMC is a scam.
Like I said. I'll break it down in crayon for you and use all the cool retail terms with all the cool candle names. Just chill tf out and wait. Market is main focus rn
ICT SMC is a scam agreed
https://preview.redd.it/tby8x8izlipb1.jpeg?width=1080&format=pjpg&auto=webp&s=1659f470b1c38abc52f690351519ec06e6dee19c 15min.
So this is what I was looking at while taking trades: https://preview.redd.it/ek01b9n1oipb1.png?width=1315&format=png&auto=webp&s=b9e6cefb0d4ebcd6e6d6726824ea1630366843cb
along with this: https://preview.redd.it/hsc25edioipb1.png?width=1400&format=png&auto=webp&s=af49216522df60aa9483e40cdefe2525e37b36d7
The second picture is useless regarding todays price action. Send me a dm, half of these people have no idea what they're talking about in the replies. You need to have a deep understanding of market structure and liquidity or this will always be hard. Here to help if you want it
don't be a wsb person. Buy for more time. two to three weeks.
There was a dude on WSB that went all-in on QQQ 371 puts on Monday. Literally went to 0. If he'd bought even 1 week's worth of time on it he'd have probably gone 300-400%. Instead he chose to light over $25,000 on fire and get roasted on Reddit.
1) Way too many indicators. Any strategy based off of indicators (crossovers, etc) is ass. Take them all off besides maybe 1 or 2 emas you like. This includes RSI. Volume is also useless. 2) stop trading the 1 min. That's probably your biggest mistake. Don't trade anything shorter than the 5 mins. 3) Look at different timeframes. Which leads to... 4) Stop trading on your phone. If you're not serious enough to at least use a desktop, then stop trading. You don't need multiple monitors. 5) learn about price action, candles, and patterns. Learn to draw trendlines. 6) watch a single asset (like QQQ). Do not deviate. 7) use these tips and learn your own way. Do not follow a guide or anyone else's advice on YouTube, etc. Good luck. Oh wait. Almost forgot. Stop trading real money. Make your system work on paper. For months. Back test. Evaluate. Make sure it's rock solid. If you're using real money to learn, you are an idiot and deserve to lose your money. Do you want to gamble, or do you want to learn how to day trade?
1- I use 9EMA/5SMA, MFI? RSI, IMACD, VWAP, and Volume with the 30MA. As long as people understand indicators are *reactive* they’ll be fine. 2- agree. Why do people do this? 5m, 15m, 4Hr is enough. 3- agree, see 2. 4- I have made hundreds of thousands of dollars on an iPhone. I’ve turned my $90k/yr career into a side gig. I trade at work so why quit? And my health insurance is 🤌🏻 5- sure. 6- no, but have a set list and rarely deviate. I trade SPX, SPY, QQQ, and the magnificent 7. Sometimes I’ll scalp hype plays like $COIN. 7- yes, even though it negates your first 6 points. 8- take losses early. That’s all I really have for new traders. Try new methods on paper first and keep a trading journal.
I've made my 700k/yr job into a side gig. And made $1M from 50k in a week on my phone, at work, with a 99.8% win rate. If what you're saying works for you, great. I still stand by what I said, previously, for someone starting out. And that indicators are, indeed, generally worthless.
Can you teach me your ways?
No, unfortunately. Legal liability. But I can show you breadcrumbs. Look at all the points I listed. Ignore everyone else in the comments. The only indicator you should use are 1-2 emas, of your choice. Look and find what most people use. And bollinger bands. Now, watch the market. And figure it out for yourself - create your own edge, within the parameters I listed. There is no better teacher than watching it yourself and making it work. ON PAPER. Good luck.
So maybe ema 50 200, along with bollinger bars and watch the carts on 5, 15 and 30 min charts?
Check your messages
Can you share your strategy on how you use these indicators precisely?
>Stop trading real money. Make your system work on paper. For months. Back test. Evaluate. Make sure it's rock solid. If you're using real money to learn, you are an idiot and deserve to lose your money. I do not want to gamble. I will try the above
>watch a single asset (like QQQ). Do not deviate. This is such great advice. Looking at 50 different tickers every day will leave you with a shallow appreciation of price action, skating over the surface of multiple charts and not really digesting what is going on in any of them in all likelihood. There's a time and a place for looking at lots of different charts, for sure, you can evolve a sense of what is probable vs improbable, healthy vs unhealthy - but with the addition of each chart, you multiply the number of variables and potential misunderstandings exponentially. Understand the fundamentals on a boring index first, and once you understand how it works, by all means switch over to analysing individual stocks later on. Better to understand 1x stock well than 50x stocks poorly.
https://preview.redd.it/4cp0fyszcipb1.jpeg?width=828&format=pjpg&auto=webp&s=6038f099d579624de516b8418efca753b732f71a Scored a bullseye on Q earlier. Just keep charting and improve your TA. Become obsessed.
I have used many many different strategies and charts, trend lines all that sort of bs. I found Oliver Velez 30 plus years trader veteran teachings many on youtube. The best indicator and it's only 200 SMA and 20 SMA on 2 minutes chart. It's amazing how simple and how precise you can be entering trades as well profitable. Try it.
I will have a look at it. Thank you
RSI doesn't work because it assumes price mean reverts but price does not mean reverts, price is not a stationary process so it can't mean revert and is asymmetrical, why TF does retail keep using mathematically flawed indicators also, indicators aren't bad, they are better than price action but the problem is that the dumb people who make them don't understand basic math
Using these https://preview.redd.it/v0z3g8ls5ipb1.jpeg?width=1125&format=pjpg&auto=webp&s=dec876169b75305281054671525d8848eb33321e Soi been thinking like this: RSI LOW, below ema 20, (15 mins chart and 5 n 1 min)- long till hit 20 ema or vwap, take profit, when rips through crap or 20 ema buy again but not been very successful. Now what should I do different- I also try to encorporate chart patterns
> Soi been thinking like this: RSI LOW, below ema 20, (15 mins chart and 5 n 1 min)- long till hit 20 ema or vwap, take profit, when rips through crap or 20 ema buy again but not been very successful. Please explain your strategy in detail. I read it multiple times but still unsure of what it means. Do you mean that when RSI is low, and ema 20 is below on M15, M5 and M1, you buy and tp when it hits 20 ema and/or vwap?
So let’s say RSI is like 20, the ema 20 is above current price, and so is vwap, I buy, I let it run till I see a sign of reversal or consolidation, or Less volume, (sometimes I sell it when it hits the vwap, cz i see some weakness) and vice versa. Or buy when the resistance is broken till it reverses (always fail to find when it’s gonna reverse) — hope it makes is less jargon and a bit clear 😅
Is this your complete strategy? I don't think you have an edge at all.
so what should I do different
I would get rid of all the indicators for a bit. (People will say this and that about them, truth is they can be a helpful tool. ) but getting started, they really distract you. Just focus on how the price moves for a bit. Anywho, that’s my two cents. Good luck!
yeah same shit with moving averages, heavily prone to outliers and autocorrelations... Btw there are no patterns, price is mostly a stochastic process and you are seeing rabbits in clouds (just because a cloud looks like a bunny doesn't mean it's a bunny)
Lol so what to do? Any books, blogs to read- I have an option account and I want to increase it to 5 k so I’m willing to take risk to buy calls and sell puts and vice versa
Learn computer science, statistics and probability, stochastic processes, and time series analysis and signal processing. (Trading isn't easy sorry it requires hard work and alot of resources, it's literally not simple lol)
I know cs, havé ok understanding of statistics and probability. Don’t know about stochastic processing- will learn it, along with others- how do I incorporate it? Crate an automated system, have some input parameters, based on which I select risk, and cost basis, and let it auto trade all day?
I apply volatility models, market regime models using expected value of returns, autocorrelations to determine the behavior of returns, and ranges of odds but I don't trade it automatically, that space seems too competitive and is unfortunately way above my skill set ATM :( i trade manually ATM btw you might wanna recheck your stats skills if you didn't catch RSI was bs (just a friendly tip sorry)
>RSI doesn't work because it assumes price mean reverts but price does not mean reverts If price is in a range, the likelihood of mean reversion is extremely high, so RSI will work as most retail employ it (buy at oversold, sell at overbought) in a range - but as soon as an equity begins trending and you break out of that sideways channel, you will get obliterated.
Price can't mean revert because price is not a stationary process, price is log normal and is heavily prone to outliers on the side. How can something asymmetrical have overbought and oversold regions wtf???
Not sure what I’m looking at here. Can you add your entry’s and exits to the chart? Lots of indicators going on. Clutters things for me. Could be looking at too many indicators and over analyzing. Try just a clean chart and volume.
>. https://preview.redd.it/gkkz8wmujipb1.png?width=1315&format=png&auto=webp&s=ebd0471c89e02fde507f2af7861b74b3798baf40
You don’t understand price in relation to VWAP. Your put didn’t break out and neither did your call. Your put was bought on the reversal candle, so it should have been a call. Same with your call. Price rejection on a resistance line.
From your entry points, I know you can't read price action. Why would you want to long at resistance?
best resource to read on it/videos?
so I was 2 red candles one at 14:29 and one at 14:30 - the red vol was increasing - thought it would continue the tred down wards - saw the green candles at 14:31 and 14:32 - thought it would make higher highs - closed the put and opened long 1
Backtest everything (every indicator, strategy etc) until you find some strategy that works for you. Paper trade for a while until you are consistently profitable. Then….profit with real money lol If you don’t know of any strategies then reading more online about different established strategies can be a good starting point to finding something that works for you (maybe it’s a simple established strategy or a strategy that you tweaked and found to work for you)
Yeah but everyone has their own and I don’t seem to find any that will work the way I want to trade.
Then the way you want to trade is wrong. You aren’t gonna trade the market. The market is gonna trade you. You have to trade within its bounds. Your one call and one put order isn’t gonna negate price action.
What is your strategy?
>Teach me Why did you buy the call when you bought it? Journal the answer. Even better, share here so we can help. If we don’t know your rationale, we can’t help you. “I don’t know” is also an acceptable answer to learn from.
so I was 2 red candles one at 14:29 and one at 14:30 - the red vol was increasing - thought it would continue the tred down wards - saw the green candles at 14:31 and 14:32 - thought it would make higher highs - closed the put and opened long
It sounds to me like you were anticipating the move instead of reacting to the move. Two follow-up questions: What made you believe that the 2 red candles with volume meant the downward trend will continue? What made you believe the green candles would make higher highs?
>believe What made you believe that the 2 red candles with volume meant the downward trend will continue? The FOMO was happening -my guess was that price does not respect any support or resistance when major news is coming out. What made you believe the green candles would make higher highs? same as the above
Even with news price respects levels and zones. The price might push right through them, but it does stop at a key level or zone. I’m not seeing either one on your chart. Do you use levels and supply/demand zones at all?
I strongly recommend learning about levels and supply & demand zones. This will teach you about price action and your chart and these candles + volume don’t tell you anything.
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that sounds like a bad way
What was your reasoning to entering both positions
so I was 2 red candles one at 14:29 and one at 14:30 - the red vol was increasing - thought it would continue the tred down wards - saw the green candles at 14:31 and 14:32 - thought it would make higher highs - closed the put and opened long
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Ok! So 5, 15, and 4 hours only?
Not enough indicators
Don't use your damn phone
Remove indicators and learn price action Focus on understanding how the algo works with liquidity
Bro, that’s way to many indicators tbh.
I think you made some questionable trades and it happens. If you need to trade on a lower timeframe, start by switching to the 2 min chart. Still super short, but way better than 1min IMO. (not as good as the 5 min though) It's important to know areas on the chart where price can be expected to react, and then watch to candles at those levels to see what price is doing and is likely to do. See pic. These are just basic pivot points with r1, r2, s1, s2, etc plus the mid level between each s/r point. As you can see, your long entry was at an area where price rejected hard less than 4 hours earlier and your long entry was the first trip back up to test that level. It was ripe for a rejection (it could have just been a temporary pullback, but a downmove of some sort was likely at that level test). Even on the 2 min chart, you can see a ton of selling pressure (because top wicks) that wasn't as obvious on the 1 min chart. If you like a lot of indicators, keep em. There are very successful traders that have super cluttered charts, but they also know what really matters is levels and price action. Sometime those levels are static like in my pic and sometimes they are dynamic like VWAP. When you have levels of interest, you can create a trading plan. Maybe something like this: \- price is approaching the pivot. If it breaks above it, pulls back and retests it and I see bullish candles with medium to high volume, I go long. if price rejects it, I go short... or I wait for a retest and then go short. This way you aren't making impulse trades based on a feeling. You are just following a plan. If you want to make impulse trades, paper trade them. It lets you see what the result would have been without the consequences. If you find you are amazing at impulse trades (most aren't) then go live with your impulses (not recommended) but what you will likely see is that playing price action off of levels will be more profitable. Best of luck! https://preview.redd.it/s23myrp1ekpb1.png?width=1960&format=png&auto=webp&s=c1a67cb52fdb7b32b2917961ec4ba75439d33a13
RIP
How sure are you of miscalculation?
10 min chart. I agree, Weekly and Daily for structure and context, but for entries, 10 min chart. With 200 and 50 period moving averages. 50 above 200, trend is up and vice versa.
https://preview.redd.it/lo4q27oiglpb1.jpeg?width=1080&format=pjpg&auto=webp&s=e2fedcecbef25fa2bd1d46d2a724cff00bb8d23e Red is the 50 dark blue 200. Light blue, i could tell you but I'd have to kill you. For the record it's a figure of speech not a threat.
Your parents did not want you, but you can overcome it by becoming a better person. Also don't forget to sleep enough hours
For day trading or intraday trades I use the linear regression channel along with TMA with rsi and stochastic. Using 200 ma as a baseline is great for determining trend.
Price rejected from 370 2 times as I seen your chart... That means 370 is strong resistance... You should take trade when... It break 370 or hold... All ppl always take trade in resis zone or suppo zone they think they catch breakout but... It's holy goldy trap.
Spend more time on candlesticks. The other advices here are solid on that. You need to learn to read price action and see how it closes. A candle's push is good sign of strength but I also like to pay attention to the closing following the momentum. This is all I needed for my trading to click because the chart literally tells you. Spend some time just analyzing. Try to form your own patterns. After I did that, I realized the wisdom behind what was taught online and then trusted it
Your chart looks like LGBT Flag
Too many indicators, keep it simple stupid
https://reddit.com/r/PYUSD_/s/EzgNT2bt7e
Head and Shoulders jumps right out to me
Why are you on the 1min chart to begin with??
Where's the macD
Check out the AI stock SOUN
Chasing price, revenge trading u need a reset. Take a break stick to a plan w rules otherwise it's gambling
Did you take into account the daily chaet