Stuff Flashcards
What do sold puts indicate?
Play weeklies, bullish
What do whole market % and etc drops indicate?
A 20% drop = bear market
A 10% drop = correction
A 3-5% drop = dip
A 1% drop = noise
If you are bothered by just “noise” then I really don’t want to know how you will act on a “dip”…
trampoline set up
This is one of my favorite setups.
Hourly trigger above daily, with daily positive velocity.
Entry at the daily trigger this entry gave a rally of 6.61% in 2 days.
Pros:
Options premium is cheaper since you are going to buy long against trend.
You can hide your SL below a larger timeframe trigger.
Often see a V-shaped recovery.
Cons:
The recovery might not happen as fast as anticipated, leading to theta decay.
It is a reversion trade, and every reversion trade has more risk than momentum trades.
clarity on the trampoline set up
Yes, just want to clarify a couple things, and make sure we are on the same page. The lower timeframe trigger has to be above the next higher timeframe trigger, never cross below. So 1 min has to be above 5 min, or 5 min above hourly, or hourly above daily. It is not the setup I am talking about if the hourly crosses below the daily. The next thing is velocity, the trampoline trigger, the trigger I am using as my entry, needs to have positive velo
voex stability tidbit
Here’s something I’d like to share with you who are looking at WKHS. I’m sure James has stated it in one of the lessons, but VOEX being in the Stable Zone does not simply imply price will trend upwards. The Stable Zone is indicative of a stock being stable and it’s price action being tolerated by the market. The Inhibition Zone and Propagation Zone are indicative of instability and have been correlated with statistically significant price action. So, in relation to WKHS, if you look at VOEX, we can see that the stock movement of WKHS is stable when it is moving down. Do not get into the mindset that the Stability Zone always implies an upward trend; it usually does, but this is not always the case. In fact, if I’m not mistaken, a stock can change it’s behavior within the Stable Zone. I don’t mean within a single cycle, but over long periods of time. Just some things to keep in mind… Anyways, If VOEX and VOEX Trend move into the Inhibition Zone on WKHS, things should get really bullish.
you can use levels and ldpm to see if what
price is gonna get lost, to see if levels will hold or not
it confirms that the level will reject. ldpm is rising up.
whenever velocity if half of its new high when price forms a new high. then you see that it’s at gavin’s level what do you suggest will happen in conjunction with ldpm.
price will go down
you sell on a trigger once what closes where?
once the candle closes below the trigger.
low 5mt velocity falling under H means buyers
would not step in to buy
you don’t have to worry about no bearish divergence
lock it in, even on trigger cross
what can you say about the monthly velocity
velocity is moving sideways, very bearish
just a comment, it might be easier to spot monthly divergences if you switch to a daily chart (instead of a monthly chart)
James Roland Responce: Yes I always do that
What’s an important note to really really make money.
But an important note - if you really really want to make money - wait for a “perfect” trade. Don’t try to force anything. You don’t have to trade every day. The pickier you are , the more money you’ll make. Understand that better setups should have more capital in them, and mediocre setups should always be small size and ready to cut quick
monthly velo
I love it! But monthly velo will only be positive if price is above the MT
what happened here?
This week I consistently made mistakes
If we look at this week’s chart on a 5minute timeframe, what do you guys see?
The week started with a HT/DT bearplane, and every bullish 1/5 cross failed
there was also no bullish hourly divs
consistent 1h velo steadily moving down.
looking at bigger picture, 1h from the 5mt timeframe
Remember, ES LDPM’s flipping bull just means we go from selling rips to buying dips
