Technical Plays

Not All Setups Are Created Equal

Jul 13th, 2016 | By | Category: Intraday Levels, market structure, Technical Plays, Trading Conversations, Trading Lesson
Each Friday at 1:30pm EST we host Trading Conversations, a webinar where we open the floor for questions from our trading community about trading stocks, options, futures, psychology, risk, or whatever you want! One of my favorite topics was brought up last week... context. In working with retail traders I get to see where people have holes in their trading plans, and where they need the most help. One of the most common areas I see a major need for improvement is in using the higher timeframe. Why do we use the higher timeframe? Let's say, for example, we're in intraday trader that likes to get long consolidation breakouts. Read more [...]


Entry Types For Momentum vs Rangebound Plays

Jun 29th, 2016 | By | Category: General Comments, market structure, Technical Plays, Trading Conversations
Last Friday we had a great talk, with Brexit fresh off the press, during our weekly Trading Conversations webinar last Friday. As usual, we covered a wide range of things such as using context, how to adjust your trading to handle volatility, and more! Not a bad way to wrap up your trading week with some open trading conversation. One highlight from the webinar was around adjusting your entry type to fit the trading style being deployed. Specifically, we discussed using passive vs aggressive entries for rangebound vs momentum conditions. There are caveats to just about any blanket "trading rule", but in general I use more Read more [...]


Using the Opening Swing to Improve Your Trading

Jun 6th, 2016 | By | Category: General Comments, Intraday Levels, market structure, Technical Plays, Traders Ask, Trading Conversations
Last Friday, during our weekly Trading Conversations webinar, we had a lot of great questions from our community - like we do most weeks! One question was about analyzing stocks right around the open, from the first minute to the first hour or so of trade. Keeping with the live and interactive spirit of Trading Conversations, I asked users to give me a ticker or two and I would display how I analyze them around the open. The group chimed in with  $BABA and $CIEN. The concept I taught was one of quickly framing the intraday context of a stock with a tool called the “Opening Swing”. Let’s jump into the details. I define Read more [...]


Trade Review: Buying SPY & IWM pull backs

Mar 13th, 2016 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Technical Plays, Trading Lesson
Thursday March 10th was a day many traders had circled on their calendars. Often the greatest short term trading opportunities will occur on days where major economic news is announced. The monthly jobs number, quarterly GDP, FED rate decisions and ECB monetary policy fall into this category. Thursday the ECB was set to announce what steps it was planning to take to offer continued stimulus for the EU. The context of this decision was that it was set to occur after several strong weeks in the US stock market. When you watch financial TV or listen to financial punditry there is a lot of time spent trying to explain why the market Read more [...]


Inside The Trading Vault – a look at GPRO and KO

Sep 14th, 2015 | By | Category: General Comments, Technical Plays, Trader Development, Trading Ideas, Trading Lesson, Trading Psychology
Trading Vault Concept - "When evaluating a chart, continually ask yourself why buyers or sellers behave in a specific way - and what it means to them when support and resistance levels are made and broken" Many of us are up and coming traders who have consistent issues with the 'WHY' to enter a trade.  Meaning, we don't have a hard lock on when to get into a trade- probably because we have some kind of deep seated feeling like it is a gambling event.  So we tend to roll dice. Those managing large amounts of money or very large portfolios do not move without proper reasoning- and lots of it.  Not saying that the reasoning Read more [...]


Inside The Trading Vault – A look at CL_F

Aug 5th, 2015 | By | Category: General Comments, Intraday Levels, market structure, Technical Plays, Trader Development, Trading Ideas, Trading Lesson, Trading Theory
      Trading Vault Concept - "When charts are in a trend, we are often tempted to pick bottoms or tops because we FEEL a chart has reversed enough.  The slightest drift over or under a level, we trigger our trades to initiate a trade in the direction of the move, but in these markets breakout and breakdown levels are part of a wave retracement event, not an isolated event.  If the chart does not hold its retracement, the move is failed. This can keep me out of bad trades and failed moves.   Learning to implement a strategy that uses this market behavior is essential to consistent trading results" Let's Read more [...]


Inside The Trading Vault – The ES_F

Jul 30th, 2015 | By | Category: General Comments, market structure, Technical Plays, Trading Ideas, Trading Lesson
Trading Vault Concept - "Trading charts profitably and with consistency depends on how well the trader understands the current market structure and relationships between buyers and sellers.  Once we understand these formations and structures, we become much more capable of creating our own consistent strategies that perform with a high degree of reliability and consistently."   Trading the ES_F overnight and into the morning for 7/30/15 and 7/31/15 The ES_F sits above an important decision price point of 2101.5 as we move into the early evening and there are signs of positive momentum showing, though the drift up is not Read more [...]


Why Netflix Was A Short Today

Jun 21st, 2015 | By | Category: General Comments, Steven Spencer (Steve's) Blogs, Technical Plays, Trading Lesson, Trading Theory
Netflix has been on quite a tear since they reported strong earnings in April trading higher by more than $200. But for short term traders who each day look to trade lower time frame trends NFLX offered a good short setup Friday morning. These are some factors I considered prior to sharing the setup in our morning meeting. Netflix had a huge blow off top the prior week moving up $60 in 1.25 trading days. Following that blow off top it trades $50 lower before starting to move high the prior few days. Typically, after a stock tops and trades lower it will begin to narrow its trading range without a major news catalyst. Oppenheimer Read more [...]