CHKP was the trade of the day for day traders today. Please explain your thought process in buying way up at 59.90 rather than the clean setup at 58.
CHKP ran 2 points from 58 to 60. The pullback will be greater than 10 cents 95% of the time. Watch for bounces to occur at quarter levels. After a 2 point move, you could expect CHKP to pull back at least / up to 50 cents, which is exactly what it did.
It traded up to 60, pulled back to 59.50, and not a cent lower.
I was not there, but I'm confident the level 2 probably showed clear support down there. It was only able to touch once I believe. Buy the 59.60s, stop at 49 or 48 cents. Trades in. Target A = 60, Target B = 60.25
You gotta ditch this order flow momentum crap. It doesn't work. You never chase. When you do this, you have no defined risk, no plan. Prices to not move in clean lines, they often move up / down in 10 - 15 cent spreads. Sure there are bids and offers only a penny away from each other, but the REAL spread is always larger. You will get stopped out over 70% of the time if you randomly buy momentum. You need levels to work off. You want to wait for levels where you have defined risk. You want to detect points for selling is ending, and buying will begin. Where do other traders see relative value? Where will other traders bail from their positions? Scalping order flow is for computer algorithms imo, not humans.
You make a living by getting 50 cent - 2 point moves, not 8 cents.
Use support and resistance.
Ditch the SPY BS unless you are able to read the market's tape for that day. I only jump in SPY or SDS when I KNOW the market has real upside or downside.
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In CHKP, if you waited, you would have seen it pulled back, found support, began making higher lows. If you wanted that trade, it was there.
The better buy was down as it broke 58. You had a tight midday range, when it broke up on volume, you're in, and you have a defined stop. You always hold past initial congestion unless something ridiculous happens. The pullback was miniscule = bullish as all hell.
CHKP ran 2 points from 58 to 60. The pullback will be greater than 10 cents 95% of the time. Watch for bounces to occur at quarter levels. After a 2 point move, you could expect CHKP to pull back at least / up to 50 cents, which is exactly what it did.
It traded up to 60, pulled back to 59.50, and not a cent lower.
I was not there, but I'm confident the level 2 probably showed clear support down there. It was only able to touch once I believe. Buy the 59.60s, stop at 49 or 48 cents. Trades in. Target A = 60, Target B = 60.25
You gotta ditch this order flow momentum crap. It doesn't work. You never chase. When you do this, you have no defined risk, no plan. Prices to not move in clean lines, they often move up / down in 10 - 15 cent spreads. Sure there are bids and offers only a penny away from each other, but the REAL spread is always larger. You will get stopped out over 70% of the time if you randomly buy momentum. You need levels to work off. You want to wait for levels where you have defined risk. You want to detect points for selling is ending, and buying will begin. Where do other traders see relative value? Where will other traders bail from their positions? Scalping order flow is for computer algorithms imo, not humans.
You make a living by getting 50 cent - 2 point moves, not 8 cents.
Use support and resistance.
Ditch the SPY BS unless you are able to read the market's tape for that day. I only jump in SPY or SDS when I KNOW the market has real upside or downside.
----------------------------
In CHKP, if you waited, you would have seen it pulled back, found support, began making higher lows. If you wanted that trade, it was there.
The better buy was down as it broke 58. You had a tight midday range, when it broke up on volume, you're in, and you have a defined stop. You always hold past initial congestion unless something ridiculous happens. The pullback was miniscule = bullish as all hell.