Busy tonight, so a quick trading recap – QQQ, IWM, IMGN, TLT, MZOR (daytrade 60.5-62.30), IMMU, APTI, GRPN, AMD, INFI (loss 2.315-2.20). ADMS, HIMX, XNET.
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Trader Scott has been involved with markets for over twenty years. Initially he was an individual floor trader and member of the Midwest Stock Exchange, which then led to a much better opportunity at the Chicago Board Options Exchange. By his early 30’s, he had become very successful in markets, but a health situation caused him to back away from the grind of being a full time floor trader. During this time away from markets, Scott was completely focused on educating himself about true overall health and natural healing which remains a passion to this day. Scott returned to markets over fifteen years ago where he continues as an independent trader.
Got three questions on charting skills. One on the push lower from the high in the video and the other on distribution and the last one on lower part of the gap.
A) Just like accumulation, a down portion followed by an up portion. Does the distribution has the reverse of that? starting with an up portion than followed by an down portion?Of so can you demonstrate a few examples visually?
B) Can you expand your explanation on the “Push from the high” and what can we learn from this price movement coming from the top, and how to use it to our advantage?
C) What’s the logic of using the lower part of the gap as an entry point? comments on the break of lower part of gap(support I assume) as entry point?
BTW great video.
A) First off I believe you can do very well by focusing on these stocks, and notice no penny stocks and not at all necessary to daytrade obviously. Your work ethic will shine. Yes in general, no question distribution is tougher to deal with. Why? Because it’s the reverse weak hand/strong hand. Meaning the weak hands are buyers, not shorting, and they avoid buying when they should buy – in accum or just coming out. And they get wildly bullish after a big run, or try to buy the reactions after the high is in, and then need to sell after the failed secondary rallies. Ponder that for awhile.
So the accum areas are smoother in general, distribution more erratic. Remember that Bitcoin chart in premarket this week. Go thru that. I was trying to point out the prelim supply, and upthrust. And comparing to the other areas.
I’m going to answer the rest of this in subscriber area, good lessons.