Hello to the new traders: scalping/day trading overview a quick overview also
If some people are interested in the Instagram watchlist and daily picks and some long term companies will be posted you must know this.
Also this might be helpful when you see comments it’s dipping down.
1.We are looking for price and volume starting as early pre-market!
2.We want lots of volume - preferably 500,000+ shares traded by open. I look for 1M+.
3. We want a wide price range - depending on the price of the stock we want a nice range between the high and the low.
High 2.40, Low 2.00. (A couple of cents between the high and low will not get us the gains we want without taking massive positions.)
4. A gap up from the previous day’s closing price would be nice too. **Example** - closed yesterday at $3.00; opened this morning at $3.50.
Look at the patterns in the pic above ^^^ These are the type of “dips” we are looking for on our scalps. We can scalp on the way up (preferred) or scalp on the way down (riskier).
Either way, we are looking for pivots from red to green like this: picture 1
So when you see comment or I mention that a play is “dipping” down, we are now watching and waiting for the reversal. We know it’s likely ready to reverse by the developing candlesitck patterns. Using your chart of choice (I prefer 3 minute or 5 minute) we wait for the signs like the patterns above.
We can also look to the left of the chart to see if the play bounced there previously.
Double bottom ^^^^ high likelihood it bounces there again. Picture (2)
We can also use Level 2 data ( Nasdaq TotalView for example) to watch the bids and asks. If we see a large bid at previous support levels, then we may feel more confident in the reversal or “bounce” back up. Note: look at the ASKs too. No sense trying to scalp something with a 500K ask two cents higher than your entry.
Entry is key.
Example:SNDL is dipping, support at 2.00, previous bounce at 2.02. Do we enter once it hits 2.02?
NO! We need confirmation that it is going to bounce there again. What is confirmation? Level 2 bid support AND a bullish sign of reversal like picture (3)
Entering before the confirmed reversal is very aggressive. You can do it, but know it is much riskier to trade this way. If the stock has bounced there three times already and we have strong bid support, then I feel better about taking a more aggressive entry, but either way we need to see bullish signs that the stock is reversing and not going to blow below that support area.
Where does the stop loss go? Depends on the quality of the play and your tolerance for risk, but generally speaking the stop loss should go just below the area you thought it may bounce. I like to look for the next area of strong bid support on level 2 and use that as my stop area. REMEMBER if someone says stop loss 2.40 or support 2.40, it is not a hard stop or support… a couple pennies here and there are okay as long as you see signs of reversal.
Scalps are intended to be quicker than a typical day trade as we are capitalizing on very quick pivots. The intention is not to hold longer than necessary to get dem gains.
Note: be careful taking entries at the top of the price range. If a stock keeps pivoting down every time it hits 2.99, then it is probably not a great entry at 2.96 unless you are taking a really large position.
Picture ( 4) shows BEARISH 🐻 PATTERNS
Some people try and time the top; others wait for the red candle or two (and risk giving up a little bit of gains) in order to avoid missing a bigger move up.
I prefer to try and time the top and if it starts to go parabolic I will move my stop up accordingly or add a trailing stop loss.
If anyone is interested on the watchlist or daily watchlist the Instagram is daily market_tips
Hope the guide helps!!! So you can make the best decisions for you and not depend on others. Which is not bad But it is nice to have security
Noticed some tipos so I Re-posted$SENSEONICS $Tonix$Zomedica Corp $Naked Brand$Ocugen Inc$Castor Maritime Inc $Citius Pharmaceuticals Inc $Ideanomics Inc $GLOBALSTAR$Avinger
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