HOW TO use the Acceleration Bands HTF indicatorYou can access this indicator HERE:
For details about the indicator, please see the indicator's description.
This idea is about the use of it.
You always want to go with the trend and trade into the direction that "accelerates" according to the indicator.
When the price accelerates, it is more likely to continue than to reverse.
Also, the volatility will be much greater (momentum) to the acceleration direction.
All the explosive moves happen outside of the acceleration bands.
You can go over many charts and see that the indicator methodology is aligned with good trading principles of great traders such as Darvas Box Trading, and Jesse Livermore entries, and also SMC.
Template
How To identify the Jesse Livermore Buy PatternAs traders, we're always on the lookout for reliable patterns that can give us an edge in the market. One such pattern, popularized by the legendary trader Jesse Livermore, is the Accumulation Cylinder with Widening Mouth.
This pattern is a rare but potentially explosive formation that can signal a significant price move.
What is the Accumulation Cylinder with Widening Mouth?
The Accumulation Cylinder with Widening Mouth is a technical analysis pattern where the price of an asset moves back and forth between two non-parallel lines, creating a cylinder-like shape.
Over time, the "mouth" of the cylinder widens as the price continues to fluctuate within the pattern. This pattern is often seen during periods of consolidation, where the market is accumulating before a potential breakout.
Key Characteristics
Non-Parallel Lines: The price moves between two trendlines that are not parallel.
Widening Mouth: The distance between the trendlines increases over time.
Consolidation: The pattern typically forms during a period of consolidation, where the price is ranging within a defined area.
Volume: You must see that the volume size is as pictured in the schema.
This post is real evidence that such a pattern does exist.
In addition, you can see that the consolidation period takes time to develop...
No need to rush...
Also, if you have not got on it from the start, by looking at the past, you can estimate that the runup is just starting, so you can still get some of the cream.
The Plus and Minus are showing increasing volume vs decreasing volume.
HOW TO Document your RESEARCH using TradingViewDocumenting your research as a trader is not just beneficial—it's essential. After a decade in the trenches, I know that organized, thorough documentation can make the difference between a profitable strategy and a missed opportunity.
TradingView is not just a charting platform, it is also a journal, a diary, for ALL your trading ideas. The features it has are enormous. You can literally screenshot/snip your screen or part of it from another window and then CTRL+V it onto the chart itself.
Personal TIP: I picture my physical notes, then I put the picture inside next to the chart, then I save the chart image with a link, and then I put the link into the idea text, and it shows me the note, like here:
You can always revise your documentation and add to it as much as you want. The more evidence you can add, the more sound your pattern is, and the more confident you will be in putting your money on it, since you "KNOW" it should manifest because it is backed up by stock market logic and research.
The price will move, with you or without you, ask yourself always the question:
"Can this move be predicted beforehand?" and start your way from there...
Be honest with yourself, some moves just CANT be predicted, they come out of nowhere, but others CAN and WILL give you HUGE SIGNS... if you document them...
Here’s a structured approach to help you capture and refine your trading insights:
1. Find a Market Logic
Before diving into trades, establish a market logic—a hypothesis or theory that drives your trading decisions. This might stem from historical data patterns, news-driven market reactions, or economic indicators. Ensure your logic is grounded in data and has a clear basis for expected outcomes. This foundational step helps avoid random, emotion-driven trades.
2. Give It a Name
Assign a distinct and memorable name to your market logic. This helps you quickly reference and differentiate between multiple strategies. A good name can be as simple as “Earnings Reversal Strategy” or as creative as “The Phoenix Rebound.” Naming your strategy not only aids in documentation but also enhances your cognitive recall during decision-making.
3. Take Pictures of It
Documenting your strategy visually is crucial. Take screenshots of relevant charts, trade setups, and indicators. Annotate these images with key details like entry and exit points, stop-loss levels, and any other pertinent information. Visual aids can clarify your logic and make it easier to analyze past trades.
TradingView allows you to insert a chart into your research, giving you the most visual documentation possible.
By the way, if you are short in time, you can do a video of your documentation and speaking your idea of a strategy instead of writing it, much faster documentation. Also, much more interactive for future reference.
4. Write the Pros of It
Clearly outline the pros of your strategy. These could include:
Consistency: Does your strategy yield reliable results over time?
Risk Management: Does it have built-in mechanisms to minimize losses?
Simplicity: Is it straightforward to execute without complex calculations?
Adaptability: Can it be applied across different market conditions?
5. Write the Cons of It - Are You Maybe Wrong?
Be honest about the cons of your strategy. Acknowledge potential weaknesses:
Overfitting: Does your strategy rely too heavily on historical data, potentially failing in real-time?
Complexity: Is it too complicated to execute consistently?
Market Conditions: Does it only work in specific market environments?
Emotional Bias: Are there elements that could lead to biased decision-making?
6. Write the Limitations of It - Where It Works, and Why?
Define the limitations of your strategy. Clearly state where and why it works, and under what conditions it might fail:
Timeframes: Does it perform best on certain timeframes (e.g., daily, weekly)?
Market Phases: Is it more effective during trending or ranging markets?
Instrument Specificity: Does it work better with certain asset classes (stocks, forex, commodities)? Understanding these limitations helps you apply your strategy more effectively and avoid unnecessary risks.
7. Connect with Different Ideas - Do They Make Sense?
Finally, cross-reference your strategy with other ideas and strategies. This process involves:
Finding synergies: Does your strategy complement other existing strategies?
Seeking validation: Are there external sources or research that support your logic?
Peer Review: Discuss your strategy with fellow traders to gain different perspectives.
HOW TO TRADE with the ICHIMOKUThe Ichimoku is one of the best-trending indicators out there.
The best strategy you could use is the CLOUD BREAK.
When the price is breaking out of the cloud, you enter into a trade in this direction.
This is the best strategy because the Ichimoku Indicator shows you multiple timeframes simultaneously, but the cloud is the highest timeframe, which means it is the strongest, and you will have fewer whipsaws and false entries with it.
This indicator is also a great tool, to hold onto your winning trades and let your profits run.
Once you get professional with it, you will know how to recognize both trending environments and ranging environments.
This means that you will know how to apply different strategies that are fit to that specific environment.
Stock Market Logic Series #13The double bottom and double top patterns are among the most powerful and reliable indicators in technical analysis. These formations provide traders with insights into potential trend reversals, making them valuable tools in a trader's arsenal. However, one must approach these patterns with patience and discipline to truly harness their power.
Statistically, the price often does not move decisively on the first attempt, and waiting for confirmation can significantly improve the likelihood of a successful trade entry.
A double bottom pattern occurs when a stock's price hits a low point, rebounds, and then retests the same low point before moving upward. This pattern suggests that the selling pressure is diminishing, and buyers are starting to take control. Conversely, a double-top pattern forms when the price reaches a high point, retraces, and then retests the same high point before moving downward. This indicates that buying pressure is waning, and sellers are gaining the upper hand.
One of the key aspects of trading these patterns is patience. It's essential to wait for the price to confirm the pattern before entering a trade. For a double bottom, this means waiting for the price to break above the resistance level formed between the two lows. For a double top, it involves waiting for the price to break below the support level formed between the two highs. By waiting for these confirmations, traders can avoid false signals and increase their chances of entering a profitable trade. This is because you will not fall into the trap of HINDSIGHT backtesting and it is clear that an M or W happened.
HINDSIGHT backtesting is that you have the hindsight advantage when you backtest, but you don't have it when you do REAL-TIME trading.
FYI, TradingView gives you the ability to do a reply of bars ... This gives you the dramatic advantage of seeing if your trading rules are REAL-TIME approved.
Patience is particularly crucial because, statistically, the price often makes multiple attempts to break through these key levels. Impatient traders who jump in too early may find themselves caught in a false breakout or worse an "imaginary breakout", resulting in losses. By waiting for the price to confirm the pattern, traders can ensure that the trend reversal is genuine and increase their odds of success.
Imaginary breakout is when you imagine the price will do what you believe it will do, and it never does it. This cognitive error causes you to enter trades you would have never taken when you backtested your strategy.
John Bollinger, the creator of the Bollinger Bands, recognizes the power of double bottom and double top patterns. Bollinger Bands are a popular technical analysis tool that measures market volatility and provides a dynamic range within which prices are likely to move. When combined with double bottom and double top patterns, Bollinger Bands can further enhance a trader's decision-making process.
TradingView also functions as the best Trading Journal , I have my whole series of stock market logic ideas which I always refer back to. Also, you can add inside the journal idea a picture of the chart that is automatically stored and displayed on the TradingView ideas.
What you see on the chart is a confirmed validated M-pattern (the pink is the manifestation of the pattern), then after it you see a period of "NOT LONG".
This gives you a "TELL" that the probability of the rallies... they are fake.
Then, you see a confirmed W-pattern (the pink is the manifestation of the pattern), then after it, you see a period of "LONG".
This gives you a "TELL" that the probability of the corrections... they are fake.
When YOU, yes YOU, "KNOWS" statistically, when a fake pricing happens... this is a very lucrative business opportunity...
Stock Market Logic Series #12
TradingView is so awesome that they let you change any piece of the chart .
You can use this chart template for visual clarity.
FYI, all my chart templates, are for visual clarity trading purposes, you can choose anyone that looks good for your eyes.
So in this chapter in the series #12 lets see what we have here.
1 - The trendline is still alive.
2 - On the correction, you can see that there is a high volume on the upside. So it means that the puppet master is buying.
3 - You could see that there are 3 down candles, on increasing volume, but their spread is smaller and smaller. So it means that the puppet master also buying on the downside, also, stops where hit there strongly, and many people stopped out directly into the hands of the puppet master, classic puppet master move.
4 - The biggest volume is on the up side ! since this is the last (recent) piece of information, this is what counts! so currently, the chart is LONG biased.
5 - Crack pattern AWARENESS- if the price will test the low, it will be the crack pattern and then the price can go down up until $105 again. It will also be a break of trendline so it makes sense that there will be a fast SHORT move. But if the price goes to test $135 and then makes $140 push, it will be a failure of the crack pattern, which increases even more dramatically the LONG bias. WHY? Because if it is short... the crack pattern should materialize... since it can't materialize... it means it is not short, so it is LONG.
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I already showed the same exact logic, in AMD, failed crack pattern (in the past posts).
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2 & 3 & 4 Examplify beautifully my concept of FORCE of the puppet master.
Stock Market Logic Series #11If you are not adding the pre-and-after-hours of trading on your chart, you don't actually see the full picture of your trading analysis.
A lot of times, the market makers will push the price on the pre/after-hours times on a light volume, and will define the true low or high of the day, where you could have gotten inside with a much better price and stop placement, so when the trading hours starts, you don't feel lost that you don't have a close risk point to put your stop at.
Also, in those outside-hours, you can clearly see a much more sensible picture where the trendlines are much more clear and it is clear what the price is doing.
Also, I don't even talk about when EARNINGS are happening... and there is a high chance for gap to happen in one direction or the other.
After a gap happens, if you only look on the trading hours, you have only the information of the first 5 min of the day so you have some estimation of what could be the high or low of the day, but looking at the pre-market you could see what are the possible true high or low of the day, which is completely different.
Also, after a gap happens, your indicators are "wrong", since they miss information.
As you go into a higher frame this becomes less important, but still... some crazy huge moves start in the pre/after-hours and the price just never comes back, it just flies to the moon. So why not position yourself at a better price with better stop placement?
The logic behind it, is that if BIG money wants a stock badly... he will buy it whenever it is possible and available before the other BIG money will snatch it from it...
Look how clear price action looks in this chart:
How to PROTECT your profits while letting them runIn the trading business you need to let your profits run while also managing your risks that means to cut your losses short.
Losses of unrealized profits are real profits that are lost. What if you could save them?
Well, there is a way...
It is not always available but it is one you want to know since if you can save 3 points of wiggle room and pay 1 point or less, over the long run it adds up to HUGE chunk of profit to your bottom line.
The reason I applied this method is because TSLA was doing 3 days in a row a push and gap up, so it seems likely people will want to take profits... but this is TSLA... it can shoot up above 500 and reach who knows where... (she did it before...).
So I want to TAKE MY HUGE profit, while giving it the option to continue to the moon, if it will want to do so...
You can never take the very top anyway, so if you "give back" 1 point of profit it is considered reasonable, but if in case the price falls down sharply or gapped down I can give back maybe 3 points with this strength of volatility, which is undesireable.
So what I did?
I sold the PUT option at strike 470 at a price of $15 (my point was $17) so for me it is even less than a point so it is very attractive deal to me...
Then... if the price had crushed down it meant for me that I sold my stocks at a price of 470 while paying the hedge cost of the PUT option of 15 so it is equivalent to me that I sold my stock at a price of 455, which is ALMOST the top. Making sure ~90% of the profit stays in my pocket. So I WIN.
If the price would continue to shoot up, then I making SUPER HUGE MONEY, while sleeping like a baby, that I already realized my HUGE profit. So I WIN.
So either way, I WIN !
Since the price did not crushed the next day and hold, and my stop loss advanced, so there was no longer need to my PUT option hedge since if price will fall I will get out with the stop loss with the same profit. So I sold the PUT hedge for a small loss, so the hedge cost me 0.25 a point overall. SUPER WORTH IT !
FYI, this comes from years of experience, but I give you some of my experience, you could do it too.
The moral of the story... when you have HUGE profit, and you feel itchy to take profit, don't ! and try to hedge yourself with options ! this way, if you were wrong and you have GME, AMC on your hand, you don't let them go, and you WIN either way ! Sleeping like a baby.
How I identify the best forex pairs to trade: (2)Here is how I identify the best forex pairs to trade: (Publication #2 / Update)
In the top left panel, the indicator 'Compare Forex' displays the PERFORMANCE of each major currency.
The USD (red line) has been the strongest currency for the past 2 months on H6 charts.
By identifying the strongest currency, all that remains is to trade the USD against all the other currencies since they are weaker.
= Smooth stress-free charts.
I look at my trades 2-3 times a day to see if they are still blue or red. Takes a few minutes.
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DEC 1st UPDATE: Last week, the JPY became the strongest performing currency. The JPY (yellow line) crossed above the USD (red line). When the performance of the USD became weaker than the JPY = The USDJPY PAIR turned down.
How to use Trading View - Part 2 - Drawings and AlertsHow to use Trading View - Part 2 - Drawings and Alerts
Remember to assign different colours to different Time Frames as we saw in the last video. www.youtube.com
Also, you can be a bit innovative and use the Trend lines to create alerts not just for the price but time as well.
What are Volume Candles and how to use themVolume Candles are a great chart type you can use to integrate volume analysis into your trading. TradingView is a superb platform that offers this chart type in real-time, so you can immediately get a completely different feel of what the market is actually doing.
As an experienced trader, understanding volume candles is crucial in getting a deeper insight into market dynamics. Unlike standard candlestick charts, which focus primarily on price movement, volume candles combine price action with the strength of trading activity (volume). This offers a unique perspective that can give you an edge in reading market sentiment and momentum.
What Are Volume Candles?
Volume candles are modified candlestick charts where the width of the candle is proportional to the trading volume during the corresponding time period. The typical candlestick elements—open, high, low, and close prices—are still present, but the volume aspect adds an additional layer of information, enhancing the clarity of price action.
Key Features of Volume Candles:
Height: Represents price movement (just like in regular candlesticks).
Width: Indicates the volume of trades within that period.
Unique Information You Can Extract from Volume Candles:
1. Volume-Driven Price Action Volume candles show how much trading interest exists at various price levels. When you observe a large volume candle, it tells you that a lot of market participants were active at that price. Conversely, a thin candle signals lower activity. This helps you:
A. Identify levels where strong participation occurs (institutional players what I call the puppet master).
B. Spot consolidation zones where volume is low, which often precedes significant price moves.
2. Momentum Confirmation High-volume candles that align with price trends suggest strong momentum.
Wide Bullish Candles: If you see a wide up candle during an uptrend, it indicates that the buying pressure is backed by solid volume. This gives more credibility to the uptrend and hints at a continued move upward.
Wide Bearish Candles: Similarly, a wide down candle during a downtrend signals strong selling pressure.
Volume Candle Chart can also be used for day trading purposes where you need to act FAST.
This TradingView chart type is extremely good so you don't need to compare the traditional volume bars on the bottom of the chart.
IMPORTANT: You must understand the puppet master mentality, which gives you context.
*** EXTRA: You can use this theme color.
Stock Market Logic Series #10Do you think the above is a coincidence?
There are no coincidences in life - only cause and effect.
You are where you are because of a cause that is bound to physical and natural laws.
The same pressure of physics that works on the airplane wing, or the balloon that wants to push its way up when pressed into water (pool), also works in the stock market.
You just have to KNOW how to SEE it. follow my explanation.
If you follow the price action, you can see clearly where the high-pressure volume comes in, you can't miss it. It is obviously seen.
Then you need to wait for the correction, and you want to see that the correction is demonstrating a low-volume pressure behavior.
When you see this low volume pressure behavior, the stock has DRIED UP.
This DRYING-UP effect is a key indicator of a probable future LIFT and stock movement.
You want to ask yourself the question:
Why the stock is not falling down anymore?
The question of "WHY" is searching for the cause BEHIND the stock movement.
The stock movement is only the effect!
In previous posts, I explained the other LOGIC behind this pattern, and explained why the price should not fall down and with a high probability of going up.
If you read any of the books of Jesse Livermore, he clearly states that you need to "KNOW" that the stock will move your way, first let the market "SHOW YOU" exactly what will happen, and only then you put in a trade.
The KEY CONCEPT in this idea is the DRYING UP OF VOLUME.
When you understand the WHY behind the stock movement, buying and selling are emotionless.
The focus should be only a trading setups that you "KNOW" it is highly probable to move in your expected trade direction. You "KNOW" because you have stock market LOGIC to back it up.
If you want a specific post about Jesse Livermore's trading rules, let me know in the comments.
It is always important to make sure that you have the correct perspective on the stock market, otherwise, you get confused. There is only at every given time only ONE side to the market as Jesse Livermore said, "The RIGHT SIDE". This goes back to my idea, that at every given time the puppet master ONLY buys or sells but NOT BOTH.
How we have been trading Bitcoin D1How we have been trading Bitcoin (Daily chart) with our indicators + hand-drawn trend lines.
After 10 years of R&D (we have been testing different indicators every day for a decade), we have developed our own Suite of 26 indicators. Here are just a few of them.
Indicators names (from top to bottom):
- Strength
Shows the strength of the market, the direction, pullbacks, equilibrium, and flats.
- Bear&Bull Powers
Shows the battle between the bears and the bulls.
- Angle
Indicates the direction and angle of the trend and the pullbacks.
- Template
Our main central indicator simplifying charts and bringing clarity.
- Steepness
Displays how steep the trend is and comments:
Going Up/Down | Trending | Strong/Weak | Pulling Back | Retracement | Flat | 75% Blue Background | ...
- Odds
11 indicators calculating the odds.
- Probability
75 indicators calculating the probabilities.
Stock Market Logic Series #6Use earnings reports to your advantage.
As I discussed in previous ideas, the big money at any given time will be entering the market or getting out of the market. Never both.
When the earnings report is good, and the stock falls down => big money used it as a good advertisement to get out.
When the earnings report is bad, and the stock goes up => big money used it as a bad advertisement to scare other people to sell him their shares, thus he gets it.
This is the logic, and this is what you would have done if you had a lot of shares to buy and sell.
Trading is a business and as such it has the same functions as regular business.
The beautiful thing about the earning of the BIG CAP stocks, is that they give you a very high probability of direction to the market indexes. This is a situation where you "know" the market is going to move a certain way. Most of the stocks will follow the index direction.
This gives you a very very good day trade opportunity.
TSLA is a big cap, so any move of her, will directly effect the indexes.
This is why it is important to be aware of the BIG CAP earnings reports.
If you monitor those earnings you will see that you can gauge with very good accuracy and confidence what the market will do on a specific day. And milk the market using a day trade technique.
I attach to you how the earnings report of TSLA which created a gap down.
Pulled all the other stocks down also.
This is not a coincidence...
Your thought process is:
- earnings report of BIG cap is out
- This will pull the market to certain direction and bias
- I "know" the bias with confidence
- Odds are in my favor this day :)
- Day trade
See the strong DOWN bias of all the stocks...
Moral of the story: You should be AWARE to the BIG CAP earnings report. It makes or breaks your day...
Stock Market Logic Series #5We are going to discuss the concept of FAIR price and how it is related to momentum.
This is also a missing piece of the puzzle related to the guppy moving averages. Which never explains the logic of fair price behind the moving averages. Just saying "traders are selling" or "investors are buying" without giving you the psychology behind the buying and selling.
The psychology behind buying and selling:
When you want something, you are willing to pay a premium on it, just to get it.
When you don't want something, you are willing to give a discount on it, just to get rid of it.
The Significance of Moving Averages in Stock Market Trading
In stock market trading, moving averages play a significant role in determining the fair price of a stock. Fast moving averages represent the short-term fair price, while slow moving averages indicate the long-term fair price. These moving averages serve as important indicators for traders, helping them understand the price trends and make informed decisions.
Trading Above the Fair Price: Strong Buyer Interest
When trading is above the fair price, it signifies that buyers are highly interested in acquiring the stock, even if it means paying above the fair price. This increased buying pressure drives the price up, as individuals value the stock and are willing to pay a premium to secure it. This scenario presents an opportunity for traders to benefit from price appreciation. Go with momentum.
Buying Opportunities: Trading Below the Moving Average
Conversely, when the price of a stock falls below the moving average, it indicates a potential opportunity for investor buyers. In this situation, the previous owner of the stock may become anxious to sell and is willing to do so at a price below the fair value. This creates a favorable buying opportunity for investors, as the stock can be acquired at a discount or fair price.
Trading Below the Fair Price: Anxious Sellers and Discounted Stocks
Trading below the fair price implies that the old buyer is motivated to sell the stock quickly. They may be eager to get rid of their position, leading them to offer the stock at a price lower than its fair value. For trading purposes, this means momentum is down, and you should look for an opportunity to sell. If the price is dramatically traded below the fair price (away from MA) this could FLAG you that a trend reversal may just happens. Remember the psychology of buying and selling. Ask yourself, if someone wants it, how come this price is so cheap?
Unfair Prices in a Downtrend: Waiting for Confirmation of a Decline
Moreover, when you are in a downtrend, when the price is above the moving average, it indicates that the stock is trading at an unfair price. However, if you have insights or analysis suggesting that the price will decline in the future, it may be wise to wait for the short-term trend to shift. By observing the stock's movement and waiting for the price to fall below the yellow fair price (moving average), traders can confirm that selling is indeed happening before making their move. Getting in too early, with the wrong trading technique, will get you hurt.
Assessing Market Conditions: Understanding Fair Prices and Moving Averages
By understanding the dynamics of fair prices and their relationship with moving averages, traders can better assess market conditions. They can identify when prices deviate from their fair value and use this knowledge to their advantage. This insight allows traders to make informed decisions based on price trends, helping them maximize potential profits and minimize risks.
Comprehensive Research: Beyond Fair Prices and Moving Averages
If you could couple of other factors that support your view of FAIR price. You can consider various factors such as company fundamentals, industry trends, and market sentiment to complement your understanding of fair prices and moving averages.
Enhancing Trading Strategies: Incorporating Technical Indicators
In addition to fair prices and moving averages, traders should also consider other technical indicators and tools to enhance their trading strategies. These may include volume analysis, trend lines, support and resistance levels, and oscillators. By incorporating multiple indicators, you can gain deeper insights into market movements and improve your ability to identify profitable opportunities.
Adapting to Market Dynamics: Continuous Learning in Stock Market Trading
Understanding the concept of fair prices in relation to moving averages is just one piece of the puzzle. Successful traders continually adapt and refine their strategies based on market conditions, new information, and evolving trends. By staying informed, conducting a thorough analysis, and employing sound trading principles, you can increase your chances of success in the stock market.
Hope this helps you, follow for more. Like this post to save it to your ideas for future reference, so you will not forget this principle.
Stock Market Logic Series #4The Puppet Master in his best work.
Once you see him, you can't unsee him.
Whether you are a day trader or a stock investor, you should know where the bigger player that plays the stock intends to buy or sell the stock.
If he intends to buy the stock, the stock will eventually go UP.
If he intends to sell the stock, the stock will eventually go DOWN.
You should always have in mind the following perspective:
The bigger player AKA the Puppet Master, has unlimited amounts of money.
He controls the market. If you view the market in this way, you will get the insight that if you think of yourself as having unlimited money to use, what would you do???
- You should make an experiment in TradingView Demo, and play as if you have unlimited money. You will get a lot of insight to the mind of the puppet master, just from this experience only.
- You would try to buy out, all the other players and seduce them to sell the stock to you.
- You buy out other people, by increasing the price up by pressing on the ASK, so people will take small profits.
- You would try to shake out, using fear, to make other players sell the stock to you.
- You shake people out by stopping buying on the ASK, and only willing to buy what other people willing to sell, you have time, you know you at any time can move the stock up, no matter how hard it went down. You move the stock up at any time by pressing hard on the ASK buy button.
- Having unlimited money does not create stocks, it has to come from someone else. You need volume, so you could buy stock from weak players. As stated you have your ways of doing the above.
-There is no selling and buying simultaneously, you have your campaign of buying and then of selling. Never do both at the same time. You thinking big, making serious money from the markup and the markdown of the stock.
Once you understand this perspective, by looking at the volume, you can have a very good guess of what the bigger player or Puppet Master is doing. You see where he creates volume and where he has no volume, so he needs to respond (by buying aggressively on the ASK, and pushing the stock up).
Chart is also self-explanatory
Follow for more
Stock market logic, volume analysis, chart patterns :)
Stock PersonalityIt is super important to make a NOTE of what the personality of the stock looks like.
You should choose a stock with a smooth personality.
Avoid stocks with schizophrenic noisy personalities.
There is someone who wants to get in or get out.
This someone has a plan and trades the stock according to his plan.
This someone doesn't change his plan every day, since this will be time and effort-consuming and confusing even to himself.
People want to be consistent.
So if this someone decides I will make my life easy and sell sell sell and buy buy buy which makes the stock looks smooth. This is someone you will have a much better trading experience with.
THE GOAL: is to search where you can make your money easily - egoless.
Follow to tune in to more of this material.
Stock Market Logic Series #3When you buy (get-in) fresh cucumbers, you have time until they will expire.
But when you need to (get-out). You need to liquidate FAST or cucumbers will rot and you cant sell them to anyone.
The same thing goes for the fashion industry.
When a clothes trader purchases clothes for sale he needs time to buy and ship the clothes to the store, it does not happen all at once. When the season ends, and if he needs to get rid of all this "unfashionable" end-of-season clothes. So he wants to liquidate and get out FAST! So you see massive discounts to get everything from him to the consumer.
The same goes for stock trading...
Hope this helps you read better the charts between buying behavior and selling behavior.
Want to know more?
Follow for the next stock market logic.
Stock Market Logic Series #1The purpose of this series is to provide insight into what price is likely to do...
and more vital... what price is not likely to do... (since X is the cause and X is not existing, hence Y will not happen...)
The chart is self-explanatory.
IF no-one cares about the stock THEN no one will put money into it (no volume) THEN it will not rise.
The BIG question is, at a certain overextended place, the price is rising, even though, everyone is at a loss on this stock. why NOT crush into a price of $1 in one sharp move?
Can we "KNOW" that we are in an overextended place?
When you have stock market logic behind you, you will be more confident to take trades.
Template Trailing Strategy - Part 02A short introduction on how to set up the "Template Trailing Strategy" script with a signal indicator like the "Two MA Signal indicator".
An explanation of the TMASI and its settings that are the same as the Strategy - Internal section logic of the TTS.
A tutorial on creating your own signal indicator, connect it to the TTS to apply your trading logic.
Mark Minervini's Trend-TemplateIn the last tutorial, we have highlighted the importance to look for stocks in a confirmed stage 2 uptrend and explained why.
But how can we use technical chart analysis can be used to identify stocks in a stage 2 uptrend?
US investment champion Mark Minervini developed the so-called Trend-Template which can be used to screen for stocks in a confirmed stage 2 uptrend.
TradingView provides all of the relevant tools to automate this screening process. The following section summarizes the technical characteristics which must be met so that a stage 2 uptrend for a stock can be confirmed:
Trend-Template to confirm a STAGE 2 Uptrend
1. Stock price is above both the 150-day (30-week) and the 200-day (40-week) moving average price lines.
2. The 150-day moving average is above the 200-day moving average.
3. The 200-day moving average line is trending up for at least 1-month (preferably 4-5 months minimum).
4. The 50-day (10-week moving average) is above both the 150-day and the 200-day moving averages.
5. The current stock price is at least 25% above its 52-week low. (Many of the best selections will be 100%, 300% or even greater above their 52-week low before they emerge from a sound consolidation period and mount a large-scale advance).
6. The current stock price is within at least 25% of its 52-week high (the closer to a new high the better).
7. The relative strength ranking (as reported in Investor’s Business Daily) is no less than 70, but preferably in the 90s, which will generally be the case with the better selections.
8. Current price is trading above the 50-day moving average (exception “Low Cheat” setups
Remark for 7: the relative strength ranking as reported by IBD is only accessible for IBD embers but the TradingView indicator 'Relative Strength (IBD Style)' by SKYTE can be used as an alternative.
We at JS-TechTrading only consider stocks for our watchlists which are meeting all characteristics of Minervini's trend-template. Additionally, we are screening stocks for solid fundamentals using William o' Neils' CAN-SLIM methodology. This screening process in itself provides us with a significant competitive edge versus most other traders are doing.






















