Today was a solid day for me trading Options. It all started with a simple alert in Clay's InnerCircle chat room this morning...
Taking a look at the chart, we can indeed determine rather quickly that we are in solid downtrend on the 5-min timeframe. I was also late to read this chat post as the move had already happened, but now we see a Bull Pole forming in a downtrend...
After going through Clay's Robotic Trading course, I knew that the chances of this being a fakeout and breaking down with pressure from the bears was pretty high so I decided to keep an eye on it.
As the day progressed, we started to notice another familiar pattern here - The Triple Bottom. From the definition, we can see the price of the stock breaking through the resistance and going much higher (bullish). Does this always happen? Certainly not, but these patterns/indicators are psychological and on a big boy stock like $GOOGL, there were plenty of eyes on this...
I watched closely as the stock bounced near perfectly off the support level. I made my entry shortly after and rode this back to the upside for even further profit. The bounce big authoritative candle was my confirmation that we would - at the very least - hit he resistance mark again. The rest is history...
Just by following what the chart is telling me, I was able to make two really good trades today. Here's to hoping I can continue my awesome run and keep this going for years to come... Till next time, stay classy ;]
- Jules Carter
This is a great post and Illustration. Have you taken any other courses from Clay besides Robotic Trading?
ReplyDeleteJacky - Yes, I have taken several courses from Clay. I plan on purchasing even more in the future :)
ReplyDeleteWe’re going to break down stock trading training for beginners so it doesn’t seem scary. One of the first things you need to do when you start out is to pick a good broker. A stock broker is going to be where you do all your business. Picking one that has large commissions and fees can be detrimental to a beginner.
ReplyDeleteAn important second step is going to be learning how to read a stock chart. The stock chart holds all of the clues to which direction the stock is going to move. Watch our ThinkOrSwim video on charts setup.
Another great resource for learning to read a chart is stockcharts.com. They have a chart school for any questions that you might have. Charts can look like Greek when you’re starting out. The more you look at a chart, the more you’ll understand it and be able to predict trends.