Bootcamp Lesson 10 - Daytrading with LDPM + Triggerrs Flashcards
first thing we always want to do is start
top > down
what is meant by top > down strategy?
what is our macro view:
what is our long term view: D time
what is our medium term view: 1hr time
what is our short term view:
what is our immediate view:
Long term view: Bullish
View on Daily Timeframe:
Monthly trigger on bottom, weekly on top of that, hourly, then 5+ and so on, very bullish
+
2 week ldpm at bottom, 1 week after, and so on. All stacked bullishly
Long term view: Bearish
Monthly trigger on top, followed by weekly, and so on
+
2 week ldpm at top, 1 week after, and so on
Medium Term View: Bearish
On hourly timeframe:
If there’s bullish long term view, check hourly to see if there’s any divergences.
There could be bearish divergences.
Turn on Daily velocity
What does this scream on a medium term view? bullish or bearish?
nothing yet, just a pretty normal retracement.
What’s important to view on all timeframes in terms of velocity?
If velocity is making a new high, or low with each new high or low
what’s another way of thinking of velocity if you’re in doubt of price breaking through past the trigger in this example?
weekly is healthy and high, if I can imagine velocity as a way to be support and fill in the “airpocket” (not necessarily what’s going on but still)
aside from checking weekly velocity in this picture, what else should be looked at?
Monthly velocity, it’s very bullish
What’s the view on this set up?
very bullish, note that James is showing us Macro on the 1hr chart to view back up.
Shorter term view: What’s going on?
There probably needs a retracement back to the weekly trigger,
Why is there short term retracement happening here?
Probably from the daily bearish divergences showed earlier.
Immediate view: bullish or bearish?
Price is below the hourly trigger, price is below daily ldpm.
Definitely bearish.
Immediate view observation happens on what time frame and use which velocity?
1 minute timeframe, hourly velocity + 1/5mt
What’s the most important view when day trading?
The immediate view
What view are we looking at and is it bullish or bearish?
Bearish
What’s the first we thing notice in this configuration?
Ldpms are stack bearishly, 5mt over price, 15 minute, hourly, 4hr + the weekly at the top
What’s the indications of these lpdms?
Bearish indications, ldpms are crossing down, leaving weekly on top
What’s the indications of these lpdms?
Bearish indications, ldpms are crossing down, leaving weekly on top
What’s the first thing we look for in the triggers chart after ldpms are checked?
we look for velocity, in this case we’re look at the 5mt trigger
Are there any divergences?
If price returns to the 5mt trigger, what happens to velocity?
it resets
What would have happened if there was only one bullish 5 minute divergence in this configuration
You’d have a 66% chance price goes down again. bearish configuration
How would you notate the chart if there’s a bullish divergence in trading view?
vertical line, and a notation or a color for the line - red or “BD”
What was noticed are the the second bullish divergence?
price was able to get through the 1 minute trigger, but price would not be able to get through the 5 minute trigger.
At this 3rd divergences, what did James do?
He took calls, and he also gave himself some time in case he would get stopped out.
If he had played closer dated, he would have made more money.
But he doesn’t work that way, he plays it safe. Which is what I should do.
What is the 5 minute velocity telling you?
That sellers are losing steam
sometimes if things are really bearish, what will happen to price with 3 bullish divergences
price will move sideways, while the 5 minute trigger will come down to price.
If 5minute trigger comes down after 3 bullish divergences appear, while price is moving sideways what happens to price?
It’ll go down, according to James
what did james do in this strategy for daily trading? note time
He sold at peak(50%) at 12:39 and let runners continue with stoploss under the 1mt trigger.
he then sold (25% at next peak) and sold the other 25% in the stop loss under the 1mt trigger.
So after the bearplane(1mt touching the 5mt trigger, what happened to velocity?
velocity started repairing and it created an hourly bullish divergence.
when price nears a big trigger like daily, how do you know if buyers are stepping in there or not?
you’ll see it in velocity, if price starts to diverge near a trigger then more than likely its telling you that buyers are stepping in or that sellers exhaustion is kicking in,
because that big trigger is where people are buying more at an important level.
With price coming down to the hourly trigger, while 5mt velocity starts diverging bullishly then that tells you what?
That price will be able to bounce back away from the hourly trigger
What hint does the 5mt velocity give when price is coming down to the hourly trigger?
depending if there’s any divergences on the 5mt velocity then it could hint that price will bounce back from the hourly, into an airplane set up.
if price is headed to daily trigger with a 3 bullish divergent hourly velocity, what would happen to price?
a perfect reversal set up, and expect price to form a beautiful airplane.
if there’s no hourly divergences while price is headed to the daily trigger, what could that mean?
it means, buyers are not stepping in at the daily trigger, there shouldn’t be any expectations to hold and that price will most likely go through.
how could this set up turn bullish?
price would need to reach hourly trigger before hourly trigger crosses daily
So ldpm 2 week is at 446.40
And daily is at 447.62
What could that mean?
It means that when price is headed down to daily trigger, and reaches it, that ldpm and daily are at a nice confluence level, so dip should be bought.
when price is below the 1hr/4/daily ldpm don’t expect what?
don’t expect huge reactions from the 5mt
if you think about it, 1hr-daily liquidity is bad.
We don’t have enough to go long.
The bullish reactions aren’t going to be powerful.
Like being weighed down by blankets
what can be said about the way these ldpms are spread out?
it can become very dangerous,
when they’re significantly spread out
As soon as price sells below an ldpm level, there’s enough gap until good liquidity happens again that price can sell down there pretty fast.
you have to be careful that price is gonna slip through the levels
What can you infer about the 3hr lookback in relation to PLANE set up?
hourly velocity is worse than it was 3 hours ago.
(hourly is increasing negatively from the start 3 hours ago)
So bearplane happen when price went over hourly trigger.
What can you infer about this 3hr lookback in relation the PLANE set up?
3 hr velocity is better now than it was 3hrs ago, therefore when price went down the 5mt, it formed an airplane.
It means that bulls have momentum, and if they have momentum, then they’ll be able to form an airplane
if you knew a bearplane was setting up, then you could have gone long where? and short where?
you must check 3hr lookback to see if the bearplane was possible. if so, long then short as it is about to bearplane. check all velocities as well.
you could have had 2 beautiful trades.
