Finding key levels.

Lately I’ve noticed a lot of you guys have been asking why are @AdamSliverTrade and other League members levels a little different than the ones you’ve mapped out. Here’s a little information that will help you understand why and better the levels you create!

Thread about what I've been doing and what I've found trying to trade options. All of this was inspired by @AdamSliverTrade @drippy2hard @WealthBrah .

First thing I do is find any good traders watchlist. Sometimes they put their triggers other times they don't. For practice sometimes I'll type in "watchlist from:AdamSliverTrade" on twitter to see all of his past watchlists.

Like this:

Then I go to that date in trading view and only look at the past data to draw trend lines and support/resistance levels. So let's take $MU from his 11/30 watchlist and chart it out.

Normally I would look at the monthly candle, weekly, and daily to see if they have any continuity (all red or all green). But I can't really do that with past trades I don't know if the monthly or weekly were red before.

#tradingtips #entry #riskreward 1/5
If price is extended from ema or makes New Highs and you slap the ask, you already skew your risk reward (in case of short you slap bid at new lows)
You have to let entry come to you for best risk reward, find pullback in the trend!

#tradingtips #entry #riskreward 2/5
When you chase, you are one providing liquidity to someone who is going to exit at that price, so you will be immediately down or negative in your position.
Even though our mind is wired to give us FOMO and we click the market buy..its wrong

#tradingtips #entry #riskreward 3/5
rather than skewing your risk reward chasing 5 plays....wait for a pullback in trend on 1 play and have size with conviction with clear support/risk off level...same if shorting...wait for resistance level bounce

#tradingtrips #entry #riskreward 4/5
If Day Trading, Tape Reading and watching where most volume is being soaked is key level for entry (Example VRPX at 8 today)...add those tape reading skills for better entry...along with support/pullback level

#tradingtrips #entry #riskreward 5/5
Take 100 charts and study the trend. Make a journal and explain to yourself if you were trading those 100 charts, which pullback would you have entered and what would have been you risk/reward and best entry!
Backtest Entries! Very important

🎲 How to play trigger watchlists 🎲

1. How/When to enter:

This is NOT an exact science, there is no way to avoid fakeouts. These are KEY levels, and for that reason, provide strong moves. However, they can be hard to break due to their significance. You must manage risk.

There are two strategies I follow.
a) Conservative: Wait for a 5 minute candle to close through the trigger level. Ex: if an $AMD put trigger is under 100 and 5 minute candle closes at 10:45AM at 99.85, take the position.

b) Risky: Playing the first sign of follow through. Ex: $AMD closes 5m candle at 10:45AM at 100.15 - No trigger. At 10:47AM, $AMD fails 100 support and closes 10:47 1m candle at 99.80. I would likely take a position off of key support failure.

2. Fakeouts/Stop losses

Taking losses is inevitable in trading. Our job is to minimize them. My rule here is -10% hard stop loss because you can always re-add the position.

Suppose you take a position from Ex a) $AMD immediately reverses and closes 10:50 5m candle at 110.15…

Your position is red, likely down ~10%. Cut the loser and reassess. Your reason for playing was the 100 breakdown, it is now INVALID. As soon as your thesis becomes invalid, cut, take a deep breath, reassess, watch.