with this price action you can count on the WSB/reddit crowd buying OTM calls. Gamma/short-squeeze chatter. Might join the trade depending on how the pre-market looks. The AMC squeeze last June ended with a head-and-shoulders in the pre, so I’ll be keeping an eye out for that.
Game Stop GME
- Thread starter Violintrader
- Start date
with this price action you can count on the WSB/reddit crowd buying OTM calls. Gamma/short-squeeze chatter. Might join the trade depending on how the pre-market looks. The AMC squeeze last June ended with a head-and-shoulders in the pre, so I’ll be keeping an eye out for that.
Here come the robinhood and webull users aka “dumb money.”
HA....call it...dumb money chase gme and amc this morning 3/29/22 and got burned for going long
i'm always intrigued by these meme trades. it bounced reasonably hard off a trend line around 160. if it holds, then I don't think this trade is over.
Uh? What is next? Note market cycle phases over and over.
1) BO continues as no pull back yet so still in BO phase. Add on every minor stopping point or be satisfied and take profits from that 2nd leg up. Then wait an see what takes to enter again.
2) We get a PB at which time channel phase begins. Then use bull channel trading techniques.
3) GME goes into a range. Then take profits and begin using Range Trading techniques.
So what would I do?
I would have locked in profits near top of that 2 leg move yesterday. Translates from close of about 151 Friday to 189 the following session (monday). That is about $38.00 profit per share. Remember 60% chance it will BO of that yellow resistance line yesterday and it did.
So next, after locking in those gains I would wait and see if we get a PB for a channel phase to start or if the BO continues without a PB.
If PB action starts today Tuesday 29th then I would wait to enter long again on another BO (pb bo). Or I would be averaging down long on any PB action (implied PB) if I am feeling giddy. Since I have already lock in profits.
Odds 60% still we will see more upside even after a PB or pb action. There is a difference in an actual PB and an implied PB or PB action. An actual PB is a low lower than the previous bar in a bull move. And implied PB is what is happening since the open this morning 29th. This mornings action is an actual PB on a smaller TIme Frame but is only an implied PB on the daily because it is PB behavior (or action) on the daily without actually being a PB as defined above. No actual PB has yet occurred in that blue circle.
MARKET CYCLE. WE ARE IN A BO STILL. ONCE AN ACTUAL PB ON THE DAILY TF HAPPENS THEN THE CHANNEL PHASE HAS STARTED WHICH WILL SUBSEQUENTLY MORPH INTO RANGE BEHAVIOR FOLLOWED THEN BY ANOTHER BO WHICH CAN BE EITHER NORTH OR SOUTH. I TRADE WHAT THE MARKET DOES, NOT WHAT I WANT IT TO DO.
1) BO continues as no pull back yet so still in BO phase. Add on every minor stopping point or be satisfied and take profits from that 2nd leg up. Then wait an see what takes to enter again.
2) We get a PB at which time channel phase begins. Then use bull channel trading techniques.
3) GME goes into a range. Then take profits and begin using Range Trading techniques.
So what would I do?
I would have locked in profits near top of that 2 leg move yesterday. Translates from close of about 151 Friday to 189 the following session (monday). That is about $38.00 profit per share. Remember 60% chance it will BO of that yellow resistance line yesterday and it did.
So next, after locking in those gains I would wait and see if we get a PB for a channel phase to start or if the BO continues without a PB.
If PB action starts today Tuesday 29th then I would wait to enter long again on another BO (pb bo). Or I would be averaging down long on any PB action (implied PB) if I am feeling giddy. Since I have already lock in profits.
Odds 60% still we will see more upside even after a PB or pb action. There is a difference in an actual PB and an implied PB or PB action. An actual PB is a low lower than the previous bar in a bull move. And implied PB is what is happening since the open this morning 29th. This mornings action is an actual PB on a smaller TIme Frame but is only an implied PB on the daily because it is PB behavior (or action) on the daily without actually being a PB as defined above. No actual PB has yet occurred in that blue circle.
MARKET CYCLE. WE ARE IN A BO STILL. ONCE AN ACTUAL PB ON THE DAILY TF HAPPENS THEN THE CHANNEL PHASE HAS STARTED WHICH WILL SUBSEQUENTLY MORPH INTO RANGE BEHAVIOR FOLLOWED THEN BY ANOTHER BO WHICH CAN BE EITHER NORTH OR SOUTH. I TRADE WHAT THE MARKET DOES, NOT WHAT I WANT IT TO DO.
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Today 29th March 2022 was an implied PB on A daily TF but an actual PB on a daily.
On daily price closes in middle of bar indicating buying before the close. Thus means at this point there is still bullish strenght on the daily TF and indicates some profit taking took place today. It is an implied PB because the low of the day did not go below the low of yesterday. At this point odds are still good that the bullish move will resume. Note it did make a higher high than yesterday. So still strong.
The second chart is a 60 minute chart. An actual PB took place on this chart. Here we get a low below the low of the previous bar so an actual PB. But it recovered quickly abd followed by 3 bull bars. The last bar was more profit taking. But price still closed well above the main PB bar. So price is still bullish even on this TF. Another scenario that could happen is range trading behavior. That would mean using techniques for trading ranges if we see 10 or 15 more bars of sideways PA. At that point it could be considered a range.
Bottom line: things are still bullish and I think odds favor new highs will be made after profit taking ends but I would be prepared for range trading too.
On daily price closes in middle of bar indicating buying before the close. Thus means at this point there is still bullish strenght on the daily TF and indicates some profit taking took place today. It is an implied PB because the low of the day did not go below the low of yesterday. At this point odds are still good that the bullish move will resume. Note it did make a higher high than yesterday. So still strong.
The second chart is a 60 minute chart. An actual PB took place on this chart. Here we get a low below the low of the previous bar so an actual PB. But it recovered quickly abd followed by 3 bull bars. The last bar was more profit taking. But price still closed well above the main PB bar. So price is still bullish even on this TF. Another scenario that could happen is range trading behavior. That would mean using techniques for trading ranges if we see 10 or 15 more bars of sideways PA. At that point it could be considered a range.
Bottom line: things are still bullish and I think odds favor new highs will be made after profit taking ends but I would be prepared for range trading too.
