More on Different kind of Trading: Vol High - Prior Vol High Stock Entry - Case on CONL (Granite Shares Trust Granite Shares 2x LON)

CHART: CONL (Granite Shares Trust Granite Shares 2x LON)

http://charts.stockfetcher.com/sfchart/OeSm5wo7tZ.png

https://www.tradingview.com/x/m16IVb2p/

Rule:

1. Filter Weekly MINOLA on Stockfetcher

2. Back Track 3 month and 2 weeks

3. Find a Chart with 3.5 months VCP Break Out

4. Buy Shares on the Pre-Surge Week

        if candle is Bearish buy the Open

        if candle is Bullish buy the Close (In case of Vol Surge 2, you can buy the Open of Pre-Surge 2)

    Or Buy Shares on Preceding Candle of VCP B/O

        if candle is Bearish buy the Open (In this case we buy $10.23, the Open of 15th Week Candle)

        if candle is Bullish buy the Close

5. Sell after 4.5 months 

6. Profit in this case:

PROFIT: $82.20-$10.23 = $71.97

      $71.97 * 100 shares = $7,197

SKLZ Potential come back from bearish slide

Skillz, one of the leading management and prizing platform for online mobile games had enjoyed a wonderful bullish run after it made a huge gap-up accompanied with a huge volume of around 45M shares last Sep 2, 2020 until Feb 5, 2021. Sep 15, 2021 was the day when the 5 months offering of their Series E stocks had been closed. Those that had gotten early for the price target of $32.208 on that offering had made a very good killing, much more when it made a secondary gap-up from $32.00 to $43.00. Such a parabolic move can always result on a sudden pullback too. The rise to $43.00 had a pullback to $32.208 which was supposed to be the retest of that price target on the initial public offering of their series E stocks. It would have been a good pullback but it was drawn lower because on March 12, 2021 they released their 10K Security Filing bearing a 92% Revenue increase from 120M to 230M but on the other hand taking a considerable increase of Net loss from 24M to 122M.

Market Maker can always utilize this Net Loss as a catalyst to bring the stock down. Thus, on the 18th of March 2021, when they again made another public offering of their Class A stocks, the whole price move went dwindling down. This platform really looks promising, but big time investors are not willing to buy at the highly valued level. Much of the price support of this stock comes down to around $12.50 where you have 2 huge volume breakouts (July 16, 2020 and Sep. 2, 2020 where volumes had risen 7M and 45M shares. This is the price line that most of the Investors from the Series E stocks started accumulating. The same big time buyers are probably wanting to add more of their shares at the same price level where they had started accumulating. Market Maker sees all these and seizes the opportunity to shake up the apple tree so the retail investors would relinquish their shares and the Market Maker will have ample shares to give to these hungry buyers at this price level.

With the current (2020/04/21) candle formation of a bullish engulfing pattern accompanied with a huge volume of 76M engulfing also the 65M red volume of last March 19, 2021 bearish trade, it looked like there is a signal of a reversal from the price waterfall.

If you want to test your ability accelotrading against an AI on this particular stock. Please visit and sign-up with accelotrade.com. 

In PLAY Mode, Create a game called SKLZ_yourname, set the following information:
Game Type: Custom
Ticker Symbol: SKLZ 

Time Out: 3min
Duration: 50 days
Simulation Date: Dec. 17, 2020
The rest of the other information keep them as they are. 

Click on the Players tab and under Invited Players click on AI. Check all boxes if you want. Click Create after this setting.

You can also invite your friends and families to play along with you in this game.
This game might just help you understand more how to trade and react on Bullish engulfing candle situation.

N78 Day High SOL

 SOL - Renesola Ltd

How this $2.00 stock made a huge jump in few short months.

Oct 7 and Oct 9, 2020 it made Double N78 Day High with huge volume.

Suggestion to Online Schools for Kids. - Teach Kids the fun way of Trading, like a chess game.

There were 2 questions being posed  by the school to get an early sense of whether we would like to place our kid in the same online school or perhaps choose a physical school to attend to. They were also assessing and getting feedback of what they can possibly improve with the online schooling which had been done as a pilot project and a response of the Covid-19 situation.

The following are also what I sent to St. Isidore School were my kids had been taking online Schooling during this Covid-19 pandemic.

1. What have you/your child enjoyed about St. Isidore Online School?

Online Schooling allowed my kids to have more relaxed atmosphere, eg. not waking up very early and rushing to school. This is also the same with us parents since it took away from us the need of driving them to school and picking them up from school. Although, the challenge is to be able to assist them closely especially on technical stuff and comprehension element of classwork most especially, that they only have limited time with their teachers via classes and Student/Teacher connect.  

2. What suggestions/ideas do you have for us to consider when planning for the 2021-2022 school year at St. Isidore?

1. The only downside with the online schooling is that the interaction between the students had been limited. I have suggested this to one of the teachers that perhaps, there should be a time allocated for the students to have at least interaction and fun with them. If there is what we call Parent/Teacher connect, or Student/Teacher Connect, there should also be Student/Student Connect.

2. Being Musically minded, my kids had missed the opportunity to exhibit their musical talents since there is no more Talent Show conducted by the School. Our Lady of Grace before the end of School year last year, when pandemic had hit already, resorted to having the kids record their performances over flipgrid and the Music teacher collated all entries and made a single video presentation which had been shown to all as called "OLG Talent Show" in a specified date and time. The only concern I guess, is that the school (St. Isidore) still has a limited number of teachers handling the classes and have nobody having the expertise to do such thing. Maybe the school can start reaching out to gifted parents as well to volunteer. 

3. Master Classes have been an awesome add-on to the learning of the students. I just however would like to point out about Finance, Investing and Trading. This particular subject had not really been valued that much to parents and to teachers themselves. My kids, opted out when they saw this, because based on what they experienced previously is that they only learn how to save and not really the real aspects of trading, which they learned personally from me. We ought to raise our kids with the proper knowledge and experience to be able to handle well their own finances someday. But unless, we do this well, they will end just the same with the older generation relying heavily on working to make money alone instead of letting their money work hard for them. Schools should start assigning key individuals who can really execute this training to kids based on the experience and knowledge they had gained combining technical, fundamental and psychological aspects of Stock trading. One of the key thing here is to start creating some kind of curriculum that will address this thing just like any other art subjects.  Trading is also an Art, Science and a Psychological subject that when taught well to kids at an early age, it will equip them with superior ability to be able to understand well the market technically and fundamentally, read the market, act with cunning discipline as a business mogul, decide intellectually without sense of fear or greed on a given stock, commodity or ticker symbol. This will make them real masters in making their money to become Bishops, Queens, Horses, and Towers to follow a winning strategy to multiply their money even while they are sleeping or not working. If only the kids will be ushered to learn this thing in a fun way, like playing a chess game, then we can raise a lot of Stock Trading Masters, Savvy Businessmen and women, Disciplined Wizards and Wise Investors.  

What makes a better trader?

Learning to Trade is Hard...So what makes a Better Trader?

2 weeks ago I received a chat message from one, who was aspiring to become a trader. I encouraged him to start learning. And he started getting overjoyed with Bitcoins and the big possibility of gains he can possibly have. Yesterday he sent me another message saying:

Trading Field is like a dream that will never come true...wasted my 16 years on education...not able to devote time...I don't want to trade stocks.

Hello Jerome! Please have a look, what I created.

And I want to let you know something,
Yes, I am interested in this field of trading, as very interested, but I am struggling with learning because this field takes time and dedication, It definitely should be because it is a different field, a lot of competition out there, it seems like competing with them is a lot difficult.

I must say that the trading field is like a dream that will never come true,
because there is my family who depend on me, I have already wasted my 16 years on education, now my father is retired I am married too. so there are lot of responsibilities on me, i am not able to devote time to this field that's why i don't want to trade stocks, i heard people lose money there so i am not even able to take risks right now because i know that I will lose. because I haven't learned much.

But yes, I understand a lot of things in trading and now I can write some content. and able to do social media marketing in this field
So that is what, I wanted to share with you.
.

And please watch this video and let me know how it is.

Thank you very much

Cheers.

He created the a video out of the context I told him that Learning to Trade is Hard.
And here is his entry:

Learning to trade is hard...

So what makes a Better Trader?

Someone who had grit and determination
Someone who focuses on Long Term and isn't focus on the short term wins.

Learning to trade is hard
From Technical Charting to Fundamental Analysis of Stock
To finding a Guru or Forum that you can follow in order not to lose money.

But what if you could learn trading the easy way,

Without headache and without losing your hard earned money?

NOW YOU CAN WITH...
ACCELOTRADE.COM
(Peek. Practice. Play)

Just Peek, Practice and Play with other traders,
Artificial Intelligence or your invited guests
in a chess-like trading game.

Simple! NO books, No Guru, No forum and No headaches.

Start Accelotrading Today
Be a better trader tomorrow.

************ MY RESPONSE TO HIS MESSAGE****************

Hello my friend,

I like the video that you made. I will be commenting on each of those entries, but before doing so, I'd like to send you this message first, so that way you can be clarified.

So what makes a better trader?

This question is not answered on the next 2 lines you made.

You answered:

Someone who has grit and determination

Someone who focuses on Long Term and isn't focus on the short term wins

Determination is not enough to be a good trader. Time frame is not enough either.

If you think it's hard, you are right. And If you think it's simple you are also right.

Either way, you are right. If you think that education is a waste of time then it is. Because you made a decision to be what it is. And if you think you have no time to devote on something, then yes indeed. That is because you already made up also your mind to be that way.

So what makes a good trader?

What makes a good trader is his mind set.

Trading is an art and passion which can only be delivered with dedication and discipline. Dedication and Discipline happens only to guys who's mental toughness exceeds more than his feelings and emotions.

Trading is also finding your domain  of comfort. He has to choose which timeframe he is able to make a wise decision without being influenced by fear or greed or outside influence. Some are comfortable of pulling in and out at 1min trade, others are comfortable by the hour, others are pretty good at swinging on days but there are those wise guys too who excel in amassing multiple baggers of homeruns in long hauls. You have to choose which one. You cannot be expert on all time frames. If you have work on the side, you can maintain your work on the side and just use trading as a means to amass wealth in long hauls. 

How do you do such thing when you are tied with current work and duties that keep you busy? 

The Criteria:

It is simple.

You concentrate on 4 fundamental Criteria of choosing a company to place your money:

1. a company that emerge to leadership
2. a company with good management
3. a company with increasing revenue and sales without debts
4. a company with product that flies 

When you have these fundamentals, the technical chart is just your reference where you can possibly best position yourself. That is why I do not go with Forex or Bitcoins because they do not operate by fundamentals. Most of the time it is pure technical and plays of emotions. But if you master it, then you may do so. For those who want to continue their work and wants to make money by using their saved money, then go with the long hauls.

The Strategy:

Mark Minervini is one of the Stock Market Wizard and he advocated the use of some principles in selecting his stock. These are some of his principal points he used in what he termed SEPA Strategy. SEPA Strategy has 5 key elements to consider:

1. TREND. Super performance stocks can be identified with the definite price uptrend.
2. Fundamentals which I just discussed earlier. In the early stage the earnings and sales are on the table. Then in the Super performance phase the earnings, revenue and margins improved.
3. Catalyst. Every super performance is ignited with catalyst behind it like new product development, new drug approval, which makes investors excited and drive the interest of Institutions.
4. Entry Points. Timing the entry is very important, otherwise you get stopped out or else considerably miss a turn.
5. Exit Points. Always consider profit. Identifying the end of the run is the key in order to keep what you made.

The Template:

Now this is the Trend Template he used to qualify stocks to fall into the trend he is looking for. These are the criteria that you can pick on a chart for a Super performance stock:

1. Price is above 150SMA and 200SMA(Simple moving average)
2. 150SMA is above 200SMA
3. 200SMA is trending up for at least 1 month (preferably 4-5months)
4. Price is above 50SMA
5. Price is 30% or more above 52Week Low
6. Price is 25% or less its 52Week High
7. RSI(14) > 70 (80 or 90 is preferable)

The Chess Master and a Businessman:

If you are able to pin-point these in a stock then you basically have selected Bishops, Queens, Horses, Towers to move your money in working hard for you. You become the Chess Master. Alas, not all would become good, there are those also that might become pawns, thus, you need to establish discipline of disposing losing stock and never hold on to it believing it will come back. The fundamentals and technical will speak them for you. This is also where you need to establish up to what percentage are you comfortable of losing money based from your entry? 10%, 20%, 30%, 50%? Warren Buffet mentioned once, if you are not prepared to lose 50% of your investment, then you are not an investor. You do not need to be like Warren, that is why you need to choose which percentage are you comfortable with. If you are comfortable with 7%. Then go establish that discipline of really selling that losing position. Be comfortable with it. But if you really choose well in the beginning the right companies, then you are way to go in succeeding. It is like hiring the best employees for your own company. That is why trading is not gambling. It is a business. You are therefore a businessman. Treat it that way and you will succeed. Then even while you sleep and work your normal job, your money will continue to work for you. 

The Golden Rule...Richest Man in Babylon 

The golden rule of the "Richest man in Babylon", always keep 10% of your earnings. Spend whatever you want with the 90% but pay the 10% for yourself. Now this 10% you keep is what you will use to feed to those companies you have chosen to make more money for you. Practice this consistently while you are young then in your old age, you will have heck of a hefty rewards for your retirement. If you are turning towards the golden age. It is never too late if you set your mind to achieve something. Start peeking, practicing and playing with virtual money first in a chess-like trading game like accelotrade. When you feel you are ready, get those 10% you save and trade. But start something, visit accelotrade.com

Keeping that 10% takes discipline as well. So in the end, we go back to the same question. 

What makes a better trader? 

It's the mind set of one that makes him a better trader, a wise investor, a savvy business man, a chess master and a disciplined Wizard.

Trading New 78 Day High on 12Bars RSI above 60 after 200EMA Breakout

Trading New 78 Day High

after 200EMA Breakout, 12 Bars Price above 200EMA and 12Bars RSI 14 above 60.

In the quest of finding that quick move as well as taking profit in a short span of time while banking on the momentum of a stock I was able to find another pattern that when observed carefully could potentially give you a handsome profit. 

This is a Test on August 31, 2020 of EVGN which showed as one of the New 78 Day High on Stockfetcher. Please refer to my stockfetcher script on New 78 Day High on my previous blog "New 78 Day High Offset"

Fig. 1 "EVGN Daily Chart"

This is the chart of EVGN when it made it's New 78 Day High. Try to observe the points that had been numbered according to the Analysis. Better still if you open the image in a separate window so you can follow through the Analysis well.

ANALYSIS:

1. Price B/O (Breakout) on 200EMA after 2 failed attempts on High Volume
   (see 1a and 1b failures).
2. Price Retested on 200EMA. 
   NOTE 1: The Retest have an RSI above 60 
   NOTE 2: Price retest is not even touching the 200EMA
3. 30EMA B/O or crossed above 200EMA
4. B/O failure at 1.50 on August 14, 2020 and
   successful B/O at 2.50 on August 25, 2020.  
   NOTE: RSI on both Failed B/O and Successful B/O were all above 60 
                This is a very bullish signal meaning that bullish momentum is really strong.
5. B/O at 2.00 where the candle had formed an inverted hammer candle.
   NOTE: Observe well that the RSI of this candle is even very strong at 82.88
                This simply means that the bulls are ready to take on beyond $2.00.
6. The Price had always been above 200EMA for 12 bars. Observe well the price action within this span of time. It is creating a Supernova. This means that the price can still surge higher but may have a very strong pullback after. 
   
   Since #2 to #5 our bullish candle move had gone 5 bars already, we are going to Peggy back on the momentum of the last 3 bars until the 8th bar. Most significant move follows a rhythm of 8 bars before creating a strong pullback. 
7. The RSI 14 of the price after the successful 200EMA B/O had been above 60 for 12 Bars. Observe well the RSI wave within this span of time. The wave is even climbing beyond RSI 80. This is highlighted with red rectangular box shaded with yellow.

TARGET CALCULATION

If I would go with my normal way of calculating the Target Price I will use my formula of calculating it. But since I am targeting of a 3 days trade only, I have to use a different approach. However, I will still lay down my formula calculation of the Target Price, so I will know the possible price it can go higher.

NORMAL Calculation of Target Price

TP = Target Price
PH = Previous High is at $1.50 when there was first attempt to breakout the 200EMA at #1a
VL = Volatility Low is at $0.75 the lowest low before the start of #1a breakout attempt.
BC = Breakout Close. This is BC2  at 1.66 after successful B/O at 1.50

TP = ((PH-VL)*3) + BC)
TP = ((1.5 - 0.75) * 3) + 1.50)
TP = 3.91 or $4.00

Based on our calculation, the stock can probably go up to $4.00. What we would like to see is make the most of the 3 days to follow after this New 78 Day High. The $4.00 can be good for a swing trade of another 12 to 15 bars.

Immediate Calculation of Target Price for the 3 bar trade.
Here we do not even have to calculate. 

1. What I normally do is make an arrow from the close of the Breakout candle that successfully broke the 200EMA(See Fig. 2). 
2. I stretch this arrow up to the High of the last candle on August 28, 2020. See H1 arrow with a height of 0.77.
3. I clone this arrow (See Fig.3).
4. then place the cloned arrow H2 on top of the H1 arrow (See Fig.3). 
5. So if the cloned arrow starts at the New High of 2.10 which is the high of H1 arrow, this will end up a high of $2.87 (2.10 + 0.77).
6. So your Target Price on the 3 bar trade will be $2.87 or $2.85 (See Fig.3).

 

Fig. 2 Creating the arrow from the close of the Breakout Candle at $1.33 

Fig. 3 Cloning the Arrow to use as H2 and get the Target Price

ENTRY

The New High had just broken the $2.00 Whole number resistance. Most of the time, after a price breaks out of this level, it will always retest what was broken before continuing higher. So if the price had gone to $2.10, chances are that the price would somehow retrace back to $2.00. With this in mind we will set our entry point at this whole number as our entry.

Entry = $2.00

TRADE CALCULATION:

MONEY = 2,000

SHARES = 1,000

BUY @ = 2.00

BUY AMOUNT = 2.00 * 1,000 = 2,000

TP = 2.85

TARGET AMOUNT = 1,000 * 2.85 = 2,850

PROFIT = 2,850 - 2,000 = 850.00

STOP LOSS = 1.85

LOSS AMOUNT = 1.85 * 1,000 =  1,850

TARGET LOSS = 2,000 - 1,850 = 150

With all the Analysis and Calculation we tried setting up the Trade using the Prediction and Measurement Tool of Tradingview and assume a trade based on our calculations. The following chart gives you the result. A target of $2.85 had been reached. A gain of  $0.85 from the entry of $2.00. A $850 profit in just 3 days of trade on 1,000 shares on an investment of $2,000. (See Fi. 4)

Fig. 4 Target Price of $2.85 had been reached 

Trading New 78 Day High on 20 days Price above 200EMA and RSI above 60

Trading New 78 Day High
after 200EMA Breakout, 20 days Price above 200EMA and 20 days RSI 14 above 60.

In the quest of finding that quick move as well as taking profit in a short span of time while banking on the momentum of a stock I was able to find this pattern that when observed carefully could potentially give you a handsome profit. 

This is a Test on June 26, 2020 of BLNK which showed as one of the New 78 Day High on Stockfetcher. Please refer to my stockfetcher script on New 78 Day High on my previous blog "New 78 Day High Offset"

This is the chart of BLNK when it made it's New 78 Day High. Try to observe the points that had been numbered according to the Analysis. Better still if you open the image in a separate window so you can follow through the Analysis well.

ANALYSIS:

1. Price B/O on 200EMA 
2. Price Retested on 200EMA
   NOTE: The Retest have RSI above 60 
3. 30EMA B/O on 200EMA
4. B/O and Retest on 2.50 Previous Failure Feb 10, 2020
   NOTE: Feb. 10, 2020 RSI below 60 on 2.50 Failure
                Jun. 24, 2020 RSI above 60 on Retest of 2.50 
5. B/O and Retest on 2.75 Previous Failure Feb. 26, 2020
   NOTE: Feb 26, 2020 RSI below 60 on 2.75 Failure
                Jun 26, 2020 RSI above 60 on Retest of 2.75
6. Price Above 200EMA for 20 days. Observe well the price action within this span of time.
7. RSI 14 above 60 for 20 days. Observe well the RSI wave within this span of time. This is highlighted with red rectangular box shaded with yellow.

TARGET CALCULATION

TP = Target Price

PH = Previous High

VL = Volatility Low

BC = Breakout Close

TP = ((PH-VL)*3) + BC)

TP = ((2.75 - 1.25) * 3) + 3)

TP = 7.5

ENTRY

Find Previous High and use that as entry

In this case, previous high is at the tip of the Rickshaw candle on Feb 20, 2020

Entry = 3.35

TRADE CALCULATION:

MONEY = 2,000

SHARES = 597

BUY @ = 3.35

BUY AMOUNT = 3.35 * 597 = 1,999.95

TP = 7.5

TARGET AMOUNT = 597 * 7.5 = 4,477.5

PROFIT = 4,477.74 - 1,999.95 = 2,477.55

STOP LOSS = 2.75

LOSS AMOUNT = 2.75 * 597 =  1,641.75

TARGET LOSS = 1,999.95 - 1,641.75 = 358.20

With all the Analysis and Calculation we tried setting up the Trade using the Prediction and Measurement Tool of Tradingview and assume a trade based on our calculations. The following chart gives you the result. A target of $7.5 had been reached. A gain of  $4.15 from the entry of $3.35. A $2,477.55 profit in just 7 days of trade on 597 shares on an investment closed to $2,000.