Day Trading Strategies. Day Strategies. and Examples. & Risk Management COPYRIGHTED MATERIAL: ANDREW AZIZ (C)

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1 Day Trading Strategies Day Strategies and Examples & Risk Management ANDREW AZIZ SESSION 4

2 Disclaimer BearBullTraders.com employees, contractors, shareholders and affiliates, are NOT an investment advisory service, a registered investment advisor or a broker-dealer and does not undertake to advise clients on which securities they should buy or sell for themselves. You understand that NO content published as part of the BearBullTraders Room and its Website constitutes a recommendation that any particular investment, security, portfolio of securities, transaction or investment strategy is suitable for any specific person. You further understand that none of the creators or providers of our Services or their affiliates will advise you personally concerning the nature, potential, value or suitability of any particular investment, security, portfolio of securities, transaction, investment strategy or other matter.

3 Class Overview Class 1: Before Start Trading: Trading Platform Class 2: Before Market Opens: Finding the Stocks in Play and Trading Levels Class 3: Technical: Orders: Market, Limit, Marketable limit, Understanding Level 2, Price Action and Trade Management Class 4: Trading Strategies Class 5: Risk Management

4 Class 4: Strategies Day Trading Strategies 1. Opening Range Breakouts (ORB) 5-min, 10-min, 30-min, 1 hr ORBs Good entries based on 5-min and 1-min charts 2. ABCD Pattern / Reverse ABCD Pattern Good entries based on 5-min and 1-min charts 3. VWAP Trading VWAP Reversals VWAP False Breakout VWAP Trend Trades 4. Extreme (Booty) Reversals (by Robert H) 5. Bearish and Bullish Engulfing Crack Strategies (Video in Education Center, by Robert H).

Float and Market Cap Low float Float (less than 20 million) Medium float (20-500 million) Large float (+500 million) Price Range Under $10 (stay

5 Float and Market Cap Low float Float (less than 20 million) Medium float ( million) Large float (+500 million) Price Range Under $10 (stay away from them) $10-$100 (my favorite!) Any (usually +$20) Trading stocks with different floats is the MAIN reason of inconsistency among traders!!

6 All of Class 4 strategies are for mid-to-high float stocks from low-floats.

7 Open Late-Morning Mid-day Close ORB ABCD VWAP Reversal Engulfing Cracks VWAP Moving Average Trend VWAP False Breakout Booty Reversal VWAP Moving Average Trend VWAP False Breakout VWAP Reversal Booty Reversal

10 Opening Range Breakouts (OBRs)

11 ORBs The first 5-min is usually very volatile, wait for 5-min.

12 Opening Range Breakouts Strategy Opening range should be lower than ATR Wild opening ranges are dangerous (too much volatility at Open = HFT or institutional trading) ORB is an entry signal ONLY. Stop loss: I usually use loss or break of VWAP. Profit target: technical levels such as low of the day Next important level moving averages nearby Previous day close

13 Opening Range Breakouts Strategy Opening range breakout is from the body of candlestick, not the wicks.

14 Opening Range Breakouts Strategy Opening range breakout in volatile opening ORB Stop out Breakout! This example is a bad ORB, because ORB is too wild and as you see, it probably won t not work out! Could not make a low!

15 We defined a Trade Idea scanner for ORBs.

16 ORB can take up to 1 hr to happen. Break out!

17 ORB can take up to 1 hr to happen. Jul

18 ORB can take up to 1 hr to happen.

19 Risk Management on Entries: Too extended from VWAP Breakout Breakout Risk! Risk! Jul

20 Risk Management on Entries: understanding 1-min price action Breakout Should we go long now for ORB? Risk!

21 Risk Management on Entries: Pull back or Reversals? Should we go long now for ORB?

22 Risk Management on Entries: understanding 1-min price action

23 Risk Management on Entries: 1-min for best entries Big rejection wick, but its bearish Daily level Breakout! Daily level Risk! Reward! Previous Day Close Previous Day Close

24 Some ORBs examples: WATT December

25 ORB Example: Use 1 min for better entry and stop loss.

26 ORB Example: Use 1 min to for better entry and stop loss.

27 More examples Jul

28 More examples Overall a bad setup: x x You have to short into supports You have to long into resistances. Jul

29 Good first trade. But Second trade I shorted into a support level of $ Jul

30 Jul

31 Daily level High of pre-market Jul MARA Float is 13 M shares.

32 ABCD Pattern

33 Day Trading Strategy ABCD Pattern

34 ABCD Pattern

35 ABCD Pattern

36 ABCD Pattern and ORB together: Powerful Strategy Sold some Sold break-even B A C D Long C D Potential entry VWAP B A C D Potential entry VWAP

41 Reverse ABCD Pattern for Short Selling

46 VWAP Trading VWAP Reversals VWAP False Breakout VWAP Trend Trades

47 VWAP: Definition VWAP is an important number to institutional traders at the end of day. Managers compare traders average filled price vs. VWAP. Big sellers want to have avg. price above VWAP Big buyers want to have avg. price below VWAP Therefore: Institutional traders want to sell above VWAP: price comes down to VWAP Institutional traders want to buy below VWAP: price moves up to VWAP

48 VWAP: the most important day trading indicator shows market sentiment: who is in control of the price.

49 How to use VWAP for trading a. The most important support or resistance level Powerful profit target or stop loss for other strategies b. Strategies: 1. VWAP Reversal at the Open (Brian s double bottom!) 2. VWAP False Breakouts (~10:00 am -12:00 pm) 3. VWAP Trend Trade: loss or hold of VWAP (usually after ~10:30 am)

50 1. VWAP Reversals at the Open (9:30 to 10 am) When Stock can not make a new 5-min low: Possible Long to VWAP and Above When Stock can not make a new 5-min high: Possible short to VWAP and below This could be after the 5 min Opening Range Breakup/down

51 VWAP Reversals

52 VWAP Reversals

53 VWAP Reversals

54 VWAP Reversals

55 VWAP Reversals

56 VWAP Reversals

57 VWAP Reversals

58 VWAP Reversals

59 VWAP Reversals

60 VWAP Reversals: Always consider risk:reward

61 VWAP False Breakouts

62 2. VWAP False Breakouts Most VWAP trades should start a trend after. If they do not, they are likely false breakouts. False breakouts, can not establish a trend above Trend Established after VWAP Go short

63 2. VWAP False Breakouts Most VWAP trades should start a trend after. If they do not, they are likely false breakouts. False breakouts, can not establish a trend higher Trend Established after VWAP Go short

65 VWAP False Breakout

66 May TGT False Breakout? VWAP False Breakout?

67 May IONS False VWAP Breakout

73 Jul

74 Jul

75 And yes, sometimes false breakouts do not work! Better to wait for next 5 min for confirmation.

76 Jul

77 3. VWAP Trend Trade after VWAP Hold or Loss Stocks in Play usually either hold or lose VWAP after the Open, that is the time to go after them!

81 3. Extreme Reversals (Robert H Booty Reversals) Stocks in Play who move extreme during the day, are set up for a booty reversal. Watch all videos on YouTube Channel

82 3. Extreme Reversals (Robert H Booty Reversals) Stocks in Play who move extreme during the day, are set up for a booty reversal.

83 Stock in Play has sold off during the day

84 Stock in Play has sold off during the day This happens during late morning, afternoon. Entry Criteria: 1. New 15-min high 2. Cross over 9 EMA, 20EMA, 50 SMA on 1-min chart 3. New 5-min high Target: VWAP Stop loss: below low of the day

85 Example 1

86 Example 1

87 Example 1

88 Example 2

89 Example 2

90 Example 2

91 Example 2

92 Example 2

93 Example 2

94 Example 2

95 Bearish and Bullish Engulfing Crack

96 Bearish and Bullish Engulfing Crack

97 Bearish and Bullish Engulfing Crack

98 Bearish and Bullish Engulfing Crack Strategies

99 Bearish and Bullish Engulfing Crack Signal: Bearish Engulfing Risk Reward Watch Robert H Video in Education Center

100 One Stock in Play: all strategies! VWAP Reversals VWAP false breakout VWAP loss ORB May

101 One Stock in Play: all strategies! VWAP false breakout ORB VWAP loss May

102 Thank you.

Orders, Level 2, Price Action

Orders, Level 2, Price Action ANDREW AZIZ SESSION 3 Disclaimer BearBullTraders.com employees, contractors, shareholders and affiliates, are NOT an investment advisory service, a registered investment advisor