50/50 Bias
Typically Sami talks about his bias for the upcoming week, but this week will be tough to determine. Find out what is making his decision so difficult and how that influences his other trade ideas. In this video, Sami explains: – One of the two scenarios that leads to a choppy trading environment – Why you can’t short some gold stocks – How trading ADVM will look similar to GRAY – Where to find a transition A play in AKBA – The signal that tells you when to jump into a stock
Continue Reading -->Options In Play – Earnings On The Radar Week Of 6/25/21
A few big names are due to report this week, mostly on Thursday. NKE, FDX, and BB will be several names in focus.
Continue Reading -->Options In Play – What’s A Friday “Lotto”?
You have probably heard traders talk about lotto calls and puts. This is a high risk, high reward strategy for late in the week.
Continue Reading -->Options In Play – A Recap Of 6/15/21 Option Coaching Session
Due to technical difficulties, our bi-monthly option session wasn’t recorded last night like it normally is. Here is a quick recap of what we talked about, and feel free to reach out if you are interested in the slides for the session.
Continue Reading -->Options In Play – Implied Volatility Works Both Ways
Out of a consolidation, implied volatility tends to expand on options as a stock begins to move. But the same idea holds in reverse – when a stock begins to consolidate after a stretch of volatility, premiums can contract on options.
Continue Reading -->Options In Play – Earnings On The Radar Week Of 6/18/21
Memes are moving and it is a great bridge because earnings slow down this week. A few big Tech reports will be the highlight of the earnings calendar.
Continue Reading -->How to Use the 20 and 200 Day Moving Averages
If you hate Moving Averages, odds are you don’t know how to use them. Combined with knowledge of price-action, they are an invaluable tool. In this article, I’ll show you how to harness the power of the 20 and 200 Day Moving Averages. What Is a Moving Average? A moving average is a stock’s average price over a certain time period. That time period can be anything from minutes to days to weeks to months to quarters to even years. A daily moving average is the average of a stock’s daily closing prices over a specified number of days. How Is the 20 Day Moving Average Calculated? The 20 day moving average is the average closing price of a stock, ETF, or other asset over the last 20 days. Each day it changes because the oldest closing price gets removed, and the newest one is added. That’s how simple moving averages are calculated. Exponential moving averages use a formula to give a greater weight to recent prices, which is beyond the scope of this article. How Does the 20 Day Moving Average Help Us Trade? Moving Averages are directional guides that speed up the technical analysis of trends. If the moving average is pointing up, you know the stock is bullish. If it’s pointing down, you know the stock is bearish. They are superior tools in uptrends and downtrends, and their importance in sideways trends is greatly minimized. In this article, I’ll show you how to use them with sideways trends. When using moving averages, the color should be consistent across multiple timeframes. The type of moving average doesn’t matter, but it should be the same on all time frames. How to use the 20 Day Moving Average The 20 day moving average is one of my powerful tools. When Stocks are about to transition up, the 20 day Moving Average with start to hug price and curve up. That is your indication that the stock is about tot transition. So, even if the trend is sideways, keeping an eye on the moving average will tell you when the sideways trend is breaking. In these examples, the moving averages alert you to the higher-low, which indicates that the stock is about to breakout. I call this “the halt”: when the stock stops criss-crossing the MA and begins to respect it. The MA applies to every timeframe the same way. The only exception is the daily, which has gaps. While the moving average is going through price, don’t touch the stock. When it starts to point up, it’s indicating that the stock is going higher. What Does the Direction of the 20 Day Moving Average Mean? A rising 20 Day Moving Average represents positive market action or strength. A falling 20 Day Moving Average represents negative market action or weakness. During a strong uptrend, retractments tend to halt at or near the rising 20 day Moving Average. During a strong downtrend, rallies tend to halt at or near the declining 20 Day Moving Average. Following penetrations of the 20 Day Moving Average, pullbacks to the broken 20MA become very likely. In this example, we see the stock bouncing off of the 20MA on the uptrend. When the retracement breaks the 20, the next several retracements also break it. The 20MA is no longer relevant as the stock goes sideways. This is anindication that the trend is over. What does the Slope or Angle of the 20 Day Moving Average mean? The slope or angle of the 20MA is indicative of the strength or weakness of the underlying stock! A 45 degree angle is ideal. Steeper than 45 indicates that the trend is not sustainable and will soon run out of fuel. Shallower than 45 degrees indicates that the stock is weak and lacks momentum. Here is an example of an ideal Rising 20MA slope. Here is an example of an ideal Declining 20MA slope. Here, the MA starts at a 45 degree angle, but becomes steeper (unsustainable), and tops out: How to Play the Trend of the 20 Day Moving Average The odds are much higher in the direction of the MA. The 20MA must be going from bottom left corner to upper right corner (when playing long) Price is at or near the 20ma, not far away from it (not extended) The 20MA is not crisscrossing price The 200MA must be below price, not above it. The correct entry is almost always at/near the rising 20MA or the declining 20MA However, we do not enter because price is near the 20MA. We must have a tradable pattern Other Ways to use the 20 Day Moving Average Expedite the scanning process: For bullish stocks, look for a rising 20 MA. A flat 20 MA indicates the stock is currently momentumless. Determine the stock’s extension: If a stock is tracking just above the MA, the stock is not extended. If the distance between the stock price and 20 MA grows rapidly, the stock becomes extended. Locate support/resistance: In an uptrend, support is almost always found at or near the MA. Determine if there is a price divergence: if a stock price shoots up above the MA while the MA continues at the same rate, the stock will most likely pullback to the 20 MA. Anticipate reversals: when a stock is in an uptrend, price respects the 20 MAs. You can spot reversals before they even happen. Anticipate a rise in volatility: If using two MAs (a faster and slower), cross overs between the two MAs indicate volatility. Calculate risk to reward: when the 20 Day MA is your target, you can calculate the risk Determine Relative Strength to Relative Weakness: If a stock is trading above the 20 MA, it is showing Relative Strength. If it’s trading below the 20 MA, it’s showing Relative Weakness. Now let’s talk about the 200 day moving average. How Is the 200 Day Moving Average Calculated? The 200 day moving average is the average
Continue Reading -->Scott Redler’s New Website!
We’d like to invite you to visit Scott Redler’s new website at ScottRedler.com. You can learn about Scott’s history, check out his services, see his long list of media appearances, and more! Just remember – T3Live.com is still the only place to purchase Scott’s products!
Continue Reading -->I’m Bullish and Not Ashamed of It
Sami was bullish last week… and he’s still this week. See the details here: Jump in and find out: Why Sami is STILL all out bullish Why almost everything is a buy What is different about a very bullish market Why APO may breakout The name that may be copying ACAD The other names Sami wants to buy and sell And more!
Continue Reading -->Options In Play – Alerts Are A Trader’s Best Friend
I use alerts every single day I trade and it helps me to keep tabs on many different stocks at a time. These work both as entrance levels and exit levels.
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