AAPL A 15m chart persective

BATS:AAPL   Apple Inc
This is an example of intraday analysis our clients receive for the instruments that they subscribe to. We will not comment extensively as the chart is very easy to follow if you have been reading our other published analysis on this site.

An important concept that we want to point out here is the failure of two short setups that occurred during opening gaps down. Both are enclosed in circles. We clearly advise our clients to never enter any position that is first reached during an opening gap as both of these were. Our analysis show that in these situations the risk factor is multiplied by a factor of ten.

It is better to wait for the next setup in the same direction. As the chart clearly shows the r/r was acceptable and both have resulted at the very minimum in nice counter-trend trades back up to the next in-trend short setups.

We will point out also that it is impossible for every trade to reach even its' first target as that would result in an eternal continually narrowing range-bound market. Most trades can not reach their targets because they are in opposite directions. But that does not preclude more than 90% of the levels we identify from being profitable, both in-trend and counter-trend.

Look at the chart and determine the potential if you knew in advance that these were the levels at which the market was likely to react. For example, if you are in a short position, how could knowing where the longs will likely re-enter and what their targets are greatly enhance your trading decisions? If you knew in advance at what level more sellers would likely add to or initiate new positions, imagine the benefit to your own market analysis. The same is true whether long or short. The benefits are numerous.

As an example by entering at the most recent long identified on the chart at open today and buying 1 option for $95, that position would be worth more than $550 in less than 3 hours. Almost 500% profit. What will it be worth at close?

The target levels for the entries are clearly marked in blue.


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