Balance Theory is LITERALLY how stocks move

It can be used in all types of trading

Here's a breakdown of what it is and how I made close to $2,000 using it👇

Balance Theory is based upon the thesis that stocks are either trading in "balance" or out of "balance"

So what exactly is balance?

Balance can also be considered fair value. A price area where buyers and sellers are both comfortable trading.
You will see a balance area in zones where price is typically choppy.

You should be able to see clear support and resistance areas.

Here's an example on $BA
So how do we use this in our trading?

There's 2 ways that a stock will react to balance.

I'll go in depth on both.

The first one is a breakout👇
A breakout of balance is fairly simple.

Price is in fair value. Over time, one side (either the buyers or sellers) has to give up and the stock breaks out of balance.

It's no different than any other breakout.

Here's the example on $BA
You can see price had a strong breakout of balance.

You can trade this by getting long as the breakout happens or waiting for the pull back into balance

Simple right?

Let's move on to the second way to trade balance (my favorite)👇
2. Reversals

There is a key concept to understand about balance and here it is:

When price FAILS to breakout of balance and ACCEPTS back into balance, there is a HIGH probability that price will rotate to the other side of balance.

Woah, that's a lot. Let's break it down👇
So looking at $BA we can see price failed to breakout of balance

Price came out of balance, but immediately came back in and failed to hold the top of the balance zone
Now let's talk about acceptance.

Price acceptance simply means price spends time and volume in a certain area.

Price is accepting to trade in that area

Take a look at $BA
Now that price has
1. Failed to breakout
2. Accepted back into balance

It means there is a high chance price will rotate to the other side of balance...

and that's exactly what happened!
You can see that price actually did this multiple times on $BA

There were 5 opportunities you can see from just this one chart👇
So...

How did I trade this on $ADBE?

Here's a balance zone on $ADBE that was from a while back.

I have it drawn in purple
Zoom into a few weeks ago, we can see price failed to breakdown of this balance zone.

We also can see price accepting back into balance.

I knew there was an opportunity at this point
I simply waited for a pull-back into a demand zone (which also coincided with the bottom of balance - a natural support area)

I got calls at demand and sold them as price rotated back to supply towards the other side of balance
I ended up making close to 90% on my calls and just under $2,000 profit.

Overall a very solid trade!
I hope you learned something from this thread

If you did, all I ask is that you like + retweet the original tweet to this thread❤️

Let's help hundreds of other traders who could add this knowledge to their trading toolbox🚀

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More from Jordan F┃Stock Trader

I've compiled a master thread of the top 5 threads I've made in 2021🔥

Here's a complete guide to everything you should know about trading
👇👇👇

Before I dive in, do me a favor and retweet the tweet above this one.

I want everyone to win in 2022, and a like/RT will help someone out there who really needs it🙏

LET'S DIVE IN👇

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Master Thread of all my threads!

Hello!! 👋

• I have curated some of the best tweets from the best traders we know of.

• Making one master thread and will keep posting all my threads under this.

• Go through this for super learning/value totally free of cost! 😃

1. 7 FREE OPTION TRADING COURSES FOR


2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX


3. 12 TRADING SETUPS which experts are using.

These setups I found from the following 4 accounts:

1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4.


4. Curated tweets on HOW TO SELL STRADDLES.

Everything covered in this thread.
1. Management
2. How to initiate
3. When to exit straddles
4. Examples
5. Videos on
APIs in general are so powerful.

Best 5 public APIs you can use to build your next project:

1. Number Verification API

A RESTful JSON API for national and international phone number validation.

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2. OpenAI API

ChatGPT is an outstanding tool. Build your own API applications with OpenAI API.

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3. Currency Data API

Currency Data API provides a simple REST API with real-time and historical exchange rates for 168 world currencies

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4. Weather API

Real-Time & historical world weather data API.

Retrieve instant, accurate weather information for
any location in the world in lightweight JSON format.

🔗 https://t.co/DCY8kXqVIK

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The Swastik is a geometrical figure and an ancient religious icon. Swastik has been Sanatan Dharma’s symbol of auspiciousness – mangalya since time immemorial.


The name swastika comes from Sanskrit (Devanagari: स्वस्तिक, pronounced: swastik) &denotes “conducive to wellbeing or auspicious”.
The word Swastik has a definite etymological origin in Sanskrit. It is derived from the roots su – meaning “well or auspicious” & as meaning “being”.


"सु अस्ति येन तत स्वस्तिकं"
Swastik is de symbol through which everything auspicios occurs

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"🕉स्वस्ति ना इन्द्रो वृधश्रवाहा
स्वस्ति ना पूषा विश्ववेदाहा
स्वस्तिनास्तरक्ष्यो अरिश्तनेमिही
स्वस्तिनो बृहस्पतिर्दधातु"


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Hindu astronomers divide the ecliptic circle of cosmos in 27 divisions called
https://t.co/sLeuV1R2eQ this manner a cross forms in 4 directions in the celestial sky. At centre of this cross is Dhruva(Polestar). In a line from Dhruva, the stars known as Saptarishi can be observed.