Example:
When you look at price action, what do you see?
1) Major trend direction. Long
2)Major support & resistance areas. Support is $55.00 & Resistance is $58.00
3) Last earnings was: positive or negative
On chart 8/3/17, was positive with 0.17 cent surprise (PA will go up in future)
It is very hard to trade stocks around EARNINGS.
4) What is Bollinger Band doing? PA was oversold, then yellow squeeze happened
then a $5.00 rocket in PA happened.
5) After positive surprise in earnings & large candlestick, then PA come back down.
*This is expected. Why? because no Price Action can go up $5.00 or straight up.
6) Top insider sold on 8/14/17 a value of $498,300,199 of shares (around 874,210 shares)
*Question: If an insider sells large amount of shares? should stock go up or down?
ANSWER IS: UP, why? there is less shares to buy, which causes price action to go UP.
In my option the best time frames to get trends are daily and 4 hours for daily trading.
7) Is Price action above or below 50 moving average- that is my neutral line on charts
Lastly, after earnings report let price action settle before jumping into a new trade, especially after large candlesticks
When you look at price action, what do you see?
1) Major trend direction. Long
2)Major support & resistance areas. Support is $55.00 & Resistance is $58.00
3) Last earnings was: positive or negative
On chart 8/3/17, was positive with 0.17 cent surprise (PA will go up in future)
It is very hard to trade stocks around EARNINGS.
4) What is Bollinger Band doing? PA was oversold, then yellow squeeze happened
then a $5.00 rocket in PA happened.
5) After positive surprise in earnings & large candlestick, then PA come back down.
*This is expected. Why? because no Price Action can go up $5.00 or straight up.
6) Top insider sold on 8/14/17 a value of $498,300,199 of shares (around 874,210 shares)
*Question: If an insider sells large amount of shares? should stock go up or down?
ANSWER IS: UP, why? there is less shares to buy, which causes price action to go UP.
In my option the best time frames to get trends are daily and 4 hours for daily trading.
7) Is Price action above or below 50 moving average- that is my neutral line on charts
Lastly, after earnings report let price action settle before jumping into a new trade, especially after large candlesticks