Trading Bullish Reversal Patterns | Technically Speaking: Breakouts & Reversals
good morning everyone john mcnichol here and welcome to technically speaking breakout and reversal patterns our topic today hey it's fed day we'll talk about that briefly we'll take a look at some reversal patterns do some practice trades manage some existing positions so stick around [Music] okay hey it's great to see those you that are live with us today such as marcy robert krishna we have sarah michael mr malibu john shane wayne kazoon uh ganesh uh ibear carly and everyone else uh we have uh barbara armstrong helping us out on the chat one of our fine coaches there particularly if you're looking at our getting started series uh make sure you follow her as well as myself on youtube it's our first initial last name i'm at j mcnichol underscore tda barbara's is at b armstrong underscore tda it's a great way to learn more about your instructors coaches as well as hopefully learn a little more about the markets as well let's take care of disclosures folks we'll get right into it the content is intended for educational information purposes only not investment advice or recommendation of any security or strategy or account type options not suitable for all investors please read the previous provided copy of characteristics and risks of standardized options spread straddles of the multi-leg option strategies often involve greater more complex risk than single-leg option trades as well as make sure we understand the risks of whether a long or short option long options the entire amount can be at risk hence position sizing proper position sizing very important and integral to our discussion short options as well can be assigned at any time regardless of the in the money amount make note of commissions important factors should be considered when evaluating any trade and wallace webcast may discuss technical analysis other approaches include fundamental analysis may assert very different views and a stop-loss order will not guarantee an execution at or near an activation price once activated they compete with other income and market orders now you're encouraged to practice what you learn here today with tools such as the paper money software which is for educational purposes and successful virtual trading during one time period does not guarantee successful investment of actual funds during a later time period as market conditions change continuously there's a brief background for those of you that may be unfamiliar with me uh if you are new to this webcast welcome let us know in the chat if you are new to the webcast this is a little more uh focus in on technical analysis specifically more along the lines of breakout patterns and you can see some of the other things that i cover down on within td ameritrade education here's our agenda review current market conditions uh with the fed coming out at 2 pm eastern time with their announcement we'll define a bullish reversal pattern with a few examples in that context we'll demonstrate place in a stock option and or a long vertical spread trade we should be able to get a couple of those we'll review some of our existing positions particularly the ones that we had entered last week in our practice trades and also uh seeing is it that this is more of a objective in a lot of these positions is typically a little more intermediate to longer term more trend trades some of the option trades can potentially be rolled as a way of extending duration and or hopefully as well sweep in some of the gains that may be on that type of trade so let's go ahead and bring up the platform onto thinkorswim uh point your attention over on the scratch pad over on the or left there's the twitter handle also you are on the trader talks channel so if you enjoy what you're learning here today first you can also click like for this video so other people are able to see it likewise you'll see a subscribe button in the lower uh right hand corner of the screen too it's a great way of being informed of our upcoming sessions uh so uh looking at the s p 500 not quite making a uh an intraday high inside the previous day's range as market participants wait for that fed announcement as we go ahead and look at the nasdaq ndx nasdaq make in a new uh intraday high since making the reversal that we had discussed in previous sessions breaking that downward trend and uh nothing slowing it down macd has tapered a little bit here but that is kind of expected as uh trends make some relatively stronger moves out the gates uh dj x similar to the s p uh kind of down in the range of that previous day a little more of an inside day uh candle aficionados would refer to that potentially as a harami uh which can basically pretend at least a breather uh whether that will continue to pull back uh or break to the upside the fed could be potentially a catalyst for that and finally but certainly not least the russell uh up one percent uh notice uh the application of that triangular pattern that we had previously talked about and uh not only do breaking out of that uh triangle but actually breaking out into new highs i believe that is well we can double check bring in a more of a longer term chart that is an all-time high for the russell okay and probably some of the drivers to that if one was to go over and take a look at some of the different sectors kind of mixed as far as the sectors as we saw on looking at some of the indices but materials consumer staples discretionary with financials slightly positive given a lot of weight to the russell's out performance on the small cap side with some of those areas now withstanding energy being negative as well as industrials there so pretty strong move for the russell there looking at volatility uh volatility is still relatively low uh albeit uh not at the lowest low uh pretend and that you know still a little bit of relative risk compared to previous highs in the market as we await the fed now as far as with uh fed as far as expectations uh you know some of you may be tracking that on the news the fed's been somewhat transparent as far as what their intention is to do and markets expectations are for them to officially announce the tapering of of the asset purchases that they're doing between treasury and mortgage-backed securities which i believe have been around 80 billion dollars a month in the treasuries 40 billion dollars a month in the mortgage-backed securities and the idea is for them to taper slow down on those purchases not cut them entirely but slow them down and continue to taper off of that with the expection of expectation i believe of them uh being entirely out uh in the uh june of next year so potentially a taper in starting mid-november early december again expectation and conclude the process by mid-2022 now it'll be interesting to see if there's anything added to that or any surprises for the market now based off of some of that math uh you know it may start off with about 10 billion dollars each month on the treasuries being reduced so 10 billion following months another 10 billion so 20 kind of cumulative effect there with the mortgage-backed securities potentially being 5 billion now kind of read some other things that they may tackle the mortgage back uh first not necessarily do both of them equally so be interesting to see how they explain that process and how the market reacts to that also as far as with other economic news which you can go ahead and see on the td ameritrade website as well as the thinkorswim platform one can go to research and ideas uh go to the calendar and once on the calendar go ahead and select economic events and as we go ahead and look at that uh the non-manufacturing uh driven by services was actually a positive surprise uh demonstrating for the month of october uh that uh now with standing covid uh people are getting out there uh also factory orders uh came in a bit more uh positive uh or kind of in line with some of the forecasts there but nevertheless being positive and uh however still weigh in on both of these is supply chain labor uh as well as the big i word inflation and uh certainly market participants looking to see how if the fed has anything to say uh on that as they come out with their rate decision at 2 pm eastern time all right let's go ahead and get back to our agenda so you know defining a bullish reversal pattern we've talked about this quite a bit for those of you that are new a great reference for you is going to be on the td ameritrade website under education once under education selecting stocks and once you're on the education select in stocks you will see access to various videos as well as potentially courses although the easiest thing to do is a scroll down under all content and look for our coursework here a lot of the concepts we're discussing here today are covered in the stocks technical analysis course if you haven't attended that or viewed it recently would encourage you to do that as i go into the continued course within some of the basics here under the technician's tool set uh continuation as well as reversal patterns now continuation patterns are the types of patterns that will potentially continue an existing trend and i try to keep the premise simple even though there are various patterns in simple shapes those patterns are typically going to be triangles or rectangles and the idea is if the price action breaks out with the trend that is a continuation whereas in reversals we can still be looking at the same shapes essentially rectangles and or triangles but a reversal is when that trend changes uh in the case of a bearish reversal the transition of higher highs and higher lows to potentially going more equal and then possibly followed by lower highs and lower lows that would be a bearish trend reversal notice as you go through the course you can also see you know one of the reasons why we apply it because the size of that pattern can help interpret potential price targets as we've illustrated in this class now there's also examples of bullish reversals which will be a couple of the examples we'll be taking a look at today bullish reversal being that the previous trend may have been more down to sideways and the transition of those lower lows transition into higher lows and higher highs this has actually been a very common pattern in the market if one goes back and looks at some of the indices uh as well as individual stocks uh going as uh you know or so as earlier as september uh september and october okay for instance if we go ahead and bring up the thinkorswim platform just utilizing the nasdaq as an example you can see that example here as price action making lower lows finding that trending support making some higher lows and transitioning breaking out of a neckline and also a downward trend bullish reversal and that has met or exceeded uh some of those potential targets if we went ahead and measured over and depending on which neckline you're looking at as far as a larger or smaller pattern but just looking at it from a standpoint of that smaller range between support and resistance i just drew a rectangle over that you can right-click activate the drawing push it up to that breakout point and you can see that it made a similar move if not more okay so that's how we can see that on the actual indices now on a couple of individual stocks we'll take a look at as an example i'll bring up c-o-t-y cody and you can see from a longer term uh this stock has had its ups and downs but if we look at it more recently uh it's actually traded a little bit higher than expected uh since i looked at it earlier uh but notice uh you have a stock price that has broken above resistance looking at some previous highs now if you do struggle on identifying some of these highs and lows and uh wish to incorporate a tool those that join me on a regular basis here we can bring up that williams fractal by going up to the patterns tool up in the right selecting show patterns select patterns this is part of the candlestick formation so go to the candlestick tab type in williams fractal we'll go ahead and double click on that and apply and you can see those fractal points at different highs and lows that are in the trend and just for this example you know you can see there's a fractal there's a fractal there's a fractal we got at least three points there representing an example of resistance okay another attraction as far as look at the moving averages uh once again those of you that followed in previous sessions we have a combination of moving averages to illustrate a trend in the case of the 55 period moving average i have in green representing more of the intermediate trend if prices above that average maybe thinking more of a neutral to bullish bias whereas if prices are below that average maybe thinking along the lines of more of a neutral to bearish now notice what's happened over the shorter term we've had a moving average crossover both the 5 and the 13 5 representing a weekly average 13 representing about a half a month that shorter term momentum transferred to the upside seeing a positive crossover now it's part of that that this is also part of kind of the productivity tools uh as far as different scripts that i've utilized uh on different watch lists where if there's a a major uh or a minor crossover now i'm not going to take a deep dive in this script here today so if you are new to this feel free to again follow me on twitter if you go over to the twitter feed on the profile again looking for at j mcnichol underscore tda when you click on my profile or my picture you'll see my tweets my pin tweet has a list of my webcast schedule also a webcast explaining those crossover scripts and if you go ahead and take a look on the document utilizing this max script explains on what the intent and the color scheme for that average is you just go ahead and take that seven digit code and follow the instructions right here okay i'll go ahead and actually copy and share that for those of you that are live in the chat today those you listen in the archive session uh feel free to go ahead and copy and follow those instructions there and the reason why i'm showing you that is uh you know as we bring up some examples a lot of those questions always come up well john how do you find those examples again if you follow the webcast that i do there is a consistency on some of selection kind of looking at a top down analysis maybe incorporating some of the sectors into the mix and more importantly looking at the actual patterns and when there is a crossover is that can potentially be setting up a breakout or a reversal same thing modulation if you go ahead on the low implied volatility look at the explanation there in the document i just sent out and you'll see that clear as day all right let's go ahead and short answer is we're looking for stocks that had relatively low implied volatility so here we have a breakout of cody breaking through resistance now there is an earnings event uh coming up so you know that is a point of speculation also keep in mind we have the fed uh coming out that can change turn things on a dime this is for illustrative purposes uh but if we go back uh we can also see you know some previous pops uh to the upside uh from the last earnings uh and you know there's a pop to the downside as well this is kind of more in the discretionary front and discretionary stocks i have demonstrated uh some outperformance there as we look at discretionary stocks let's see here consumer discretionary for the last month 21 days is actually up on the top so there is some backing there from the sectors also over just the last week as well discretionary stocks have been performing well now there's no guarantee this will continue uh but there is some momentum behind that and you know whether traders may be targeting a previous high or look to see if this overall trend may be more of a reversal you know and if we go ahead and just look at it more over the course of this last year you know keeping in mind you know there could be some longer term resistance there but that's pushing up uh closer to that 10 level now the idea is that longer term expecting this trend to continue reversing and notice one can see that also on the weekly chart kind of potentially a double bottom so i'm going to go back to this one and we'll do an example of a practice trade let's switch this to a daily chart will position size and this is a relatively less expensive stock as you look at my example as far as the amount that's in the account significant size there i could probably do about 500 shares of this if i right click on the chart and consider uh if you're practicing the size of your practice account as well if i go ahead and do let's say by custom width stop it defaults to 100 shares if i go ahead and let's say change this to 500 and hit confirm and send uh you can see even with 500 shares the allocation is about 4 500 that's a relatively small amount of this account fact i think that's only about less than one percent uh you know as far as allocation some investors may have rules as far as not allocated more than five percent or ten percent in an individual trade so i have room to potentially acquire more shares but one of the ideas is when it comes to a reversal is to possibly scale in uh to that position one when it initially reverses and then if it continues by breaking higher we're pulling back and forming some support which we'll talk about in another example okay now as far as setting a stop which is not guaranteed and some traders may or investors may not even use a stop uh considering how they may have allocated uh and again i position size this to a relatively small amount of the account but if i wish to use an example of a stop we can set one a percentage below this breakout point and looking at that resistance let's say that's at about i'm going to look at the kind of a little bit lower on this here kind of look at the lower points of this resistance right around here that's around 8.54 cents if i was to set a stop a percentage below let's say three percent now since this is a less expensive stock i'm going to make it a little bit wider five percent kind of incorporate a little bit of volatility there so if i took that 854 i'll bring up a calculator eight dollars and 54 cents times 0.9 uh that would equate out to be in a stop of about eight dollars and eleven cents and notice that is uh a bit below that potentially new support the idea if the price kind of blows back a little bit uh we could potentially stay in the trade and you know also earnings uh can provide some liquidity there uh and stop you out and possibly go higher so you know stops are not guaranteed to fill at a particular price once triggered they'll compete against other income and market orders uh in fact for this example i'm actually not going to put in a stop since i am position sizing and willing to speculate going into that earnings event so i'm going to go back to this one right click buy and we'll edit that change that to 500 shares and then look but potentially to add a stop at a later time i'll hit confirm and send and send now depending on where you clicked on the chart that could have been a lower price than where it currently is notice my limit is actually below the price what i can do i can weather drag that up closer to the current price and send that through that'll do a cancel and replace or i can actually right click on that order if it doesn't fill do a cancel and replace and notice the price is locked i can go ahead and uncheck that it'll bring up more of a marketable price and i'll go ahead and i'll click send all right so we went and got a fill on that and we'll continue managing this example uh another example uh we'll take a look here and give me one second question came across about position sizing and uh if you don't know about position sizing you have to take a look at our courses technical analysis trading options all of our courses talk about a risk management component so diane what position sizing is is we're trying to define a level of risk based off of how we size the trade so in the case of cody this is a nine dollar stock so if you buy a hundred shares you are investing uh theoretically uh nine hundred dollars for every hundred shares uh so think of that nine hundred dollars uh as an allocation uh so for instance if you had a ten thousand dollar account uh that uh nine hundred dollars would be about nine percent of your portfolio and as far as allocation a common uh rule although people may vary on this is not allocated more than five to ten percent of your account in any one trade now as far as the risk of loss uh the risk of that going down to zero uh would be unlikely but it can't happen so some traders may focus on that allocation now if we used a stop loss uh again not guaranteed but if we had a stop loss of let's say at around nine dollars and eleven or eight dollars and eleven cents we're risking about 90 cents a share theoretically and if i did a hundred shares uh theoretically uh that would be uh risk in uh what that would be what 90 okay even though i may be investing more into that trade is trying to attempt to define some risk before you place the trade sorry my drawing tool is not working very good there now as we'll take a look at options options are another way of defining risk uh potentially as well so let's go ahead and take a look at another example uh let's look at uh nordstroms jwm again another discretionary stock so you can kind of see a theme here uh notice uh an example of a double bottom kind of that w pattern now not quite but notice the 5 has crossed the 55. 13 is not quite covered but notice again kind of the theme of if we see positive crossovers above that 55 this may be more of an intermediate bullish reversal so you can see that transition lower lows potentially higher lows in fact some traders may call this a little more of a complicated head and shoulders pattern uh it doesn't matter that's why i keep to the basic shape it's a rectangle and the distance between that support and that resistance can potentially point towards a target if i go to the drawing tools and highlight that we'll take a rectangle tool i'm just highlighting over dragging over between that support and resistance we can see based off of time and distance hence uh the pattern analysis that comes into play i can right click activate that drawing push it to the breakout point and get in an idea potentially based off of uh price targets and you may see some confluence with previous price action uh as well as the amount of time it could potentially take as well whether one's doing a stock trade or an option trade now as we look at the candle there was a bit of a fade here on nordstrom's uh it did trade a bit higher and it has faded where this broken resistance may act as some support now again this is for illustrative purposes some traders may look for uh more of a confirmation of a bounce as price trades above the high of the low day i'm looking this as an example of a breakout and maybe more of an intermediate example expecting that nordstroms may continue to recover there is an earnings event later in november i want to do is i'm going to do an option trade i'm going to go to the trade tab let's go to the trade tab and do an example of potentially a a stock replacement where we may go a little further out in time you know greater than 50 days uh maybe closer around 80 to 120 days here we got january 79 days expiration if i click on this and this kind of gets to the position sizing that you talked about diane and some of you may be curious about is you know one of the attractions as far as with options is less capital is potentially locked up although that entire amount could be put at risk so in this case if we were to buy this little more in the money option with the 73 delta uh that is 5.55 cents times the multiplier of 100.
most equity options have a multiplier of 100. so that would be 555. now if i click buy on this there the most i can lose on this trade that we're looking at this practice trade is the what we paid for the option in this case 555. now the price does need to move for this to be profitable there is a break even on this that's the time value that is embedded in this trade which looks like it's about uh about a buck seventy maybe a buck eighty so the price has to go up to thirty three dollars by january's expiration for this to break even now if there's a stronger move over the nearer term we can potentially be profitable and and look for a hopefully a nice return we'll talk about on managing some existing positions in a few so again i can position size this to a maximum loss if i'm willing to risk uh let's say twelve hundred dollars in the trade i don't know why my drawing tools are giving me a giving me a bit of a problem here it's looking like i'm writing greek uh 1200 it's izod a famed brand uh twelve hundred dollars uh i can do this two times okay so let's go ahead and do that i'm gonna edit this and change this to two times uh i'm gonna confirm and send now notice here i'm not gonna put in a stop loss order as well because i've already defined my potential worst case scenario in this case 1120.
now i'm going to go ahead and send this one through got that one filled now what we could do uh is i could put in a alert maybe somewhere below this breakout point right click create an alert and say hey if the stock is at or below basically what i clicked on go ahead and make yourself a note and then be alerted to that whether via email uh text and as if you're logged in the system uh it would be uh on the platform okay if you want to learn more about setting alerts a very good function of the platform under education and for some reason it will not load up for me but you can go to the learning center and type in alerts in the upper right hand field and so here it can basically be informed if prices change and possibly make a uh make a decision on closing out the trade let's go ahead and do one more uh example that'd be uh stld so what we've been going through is examples of bullish reversal patterns we placed an example of a stock trade using position sizing we place an example of a long call a directional trade and then another way of defining risk a little bit more possibly reducing the cost of the trade if one's directional is doing a long vertical spread which is the same as what we just did as far as buying an option but selling another option that may be near a targeted price so for that example we're going to bring up stld dynamics now this is uh moving away from the uh the discretionary stocks uh this is one that is in the materials area and we know materials generally have had a better month now they have pulled back a bit but notice an example here on stld kind of a double bottom rectangle broken resistance potentially acting as new support where we have potentially a bullish harami now again as a matter of timing some traders may look for a little more confirmation of a bounce or a hold before entering a bullish trade this example we're going to anticipate the bounce which obviously has its pros and cons if it bounces pro if it fails a con and again we don't know if the fed how much the fed is going to impact these example positions but want to demonstrate them anyway so let's say i'll do something similar buying a call but we'll go ahead and actually sell an option uh at a price uh that we believe that the price may be trading to over the next 20 to 40 days i think i was looking at this a little bit earlier here uh let's see here bear with me for a moment actually i'm going to switch this one up the other one and you're welcome to look at steel dynamics the other one was looking at was uh i see now i'm split i'm gonna go ahead since we're already doing an earnings uh play uh i'm gonna go ahead back to steel dynamics so bring that up stld notice in the case of uh 3d systems again another bullish reversal breaking out kind of pulling back a little bit as we saw on our previous example stld i'm going to go to trade tab now this one we're going to go out about 45 days and i'm going to go ahead and select a strike that's a little uh in the money in this case we have a 65 strike and i don't have as much as far as strike selections but we do have a 65 now to believe that over the next 45 days that steel dynamics may trade back up to 65 then this could be a potentially viable trade 65 is not a huge move that's basically essentially trading where it was just trading a few days ago and what i can do here is go to that trade tab i can click buy to buy that option now this would be similar to what we had done on uh on nordstrom's okay not as far out okay but if i want to reduce the net cost of this trade i can minimize this and then select and out of the money at to out of the money option that's cheaper hold the control key and hit sell now to find the risk even more in this case 2.53 cents times the multiplier of 100. uh target in that 65 strike now i'm gonna go ahead and hit confirm and send you can see the defined gain correction defined loss the defined gain would be that and that's based off of if the price is trading at 65 at expiration now i talk more about managing these trades on thursdays in my long verticals and diagonals class that is at 11 a.m eastern time from profit standpoint we look to potentially capture about 50 percent of this maximum gain so if we're able to profit about 120 dollars in this example per contract we may lock in the gains also notice to break even 6253 which happens to be just below where the current price is so if the stock doesn't do anything it does nothing but go higher this would be a profitable trade minus any commissions okay so i'm gonna actually do this uh i'm gonna do this two times that'll be risking theoretically a little over five hundred dollars on this practice account relatively smaller position define risk define gain we'll go ahead and we'll send this one through and i'll make sure that gets filled so what we've done thus far folks is we've gone through several examples of bullish reversal patterns and we've demonstrated on how to place a stock option and a long vertical spread now all of these have their pros and cons uh certainly with the stock there's no concern about uh correction here uh with a uh with a stock trade one has a benefit of stock ownership if there are dividends being paid there's that benefit as well however don't necessarily has much control over risk if we're looking at a trade over a nearer term uh an option may afford that opportunity however there are costs associated with that trade and that entire amount can be put at risk but notice in each example we have demonstrated some position sizing now before we finish off by looking at some of our existing trades and trade management is there is a survey that came across so if you can click on that survey uh and fill that out you can fill it out at the end of the session but click on it now so you can give some feedback hopefully you've enjoyed what you've learned here today as we've applied not only the principles of price patterns and showed you some of those resources but how to potentially trade them now all these examples are focusing on a little more of the trend trade with the example of the spread to target that short strike now let's take a look at our open positions uh from last week if you recall those you that joined us we had done an example on uh on a f which was abercrombie i believe a retailer that we had noticed some of that relative performance and that rectangle uh price did break i think we did more of the breakout trade as price broke through that resistance and it actually has hit its target based off the size of that previous pattern now typically i keep this in as an example of a trend trade well we'll continue trading as long as that trend is making higher highs and higher lows however if we go back on that position uh a f notice we did 200 shares now what may be common uh is some traders may sell part of that position if they've reached a target that's what what's referred to as you know scaling out uh you can see where some of the profits are here so if i wanted to close out half the position as a swing trade i can go ahead right click create close and order and adjust that to 100 shares and hit confirm and send and i closed out half the position now notice there's already a sell order on this trade which means i have probably a stop loss that's on here now since already sold part of the shares we also need to change the stop loss so i'm going to click on that sell order right click on that stop loss cancel and replace order and i'm going to change this to the rest of the shares which is 100. i'll hit confirm and send and send now if i go ahead and look at this on the chart i think should be able to visualize that stop on there as well now some traders also after a favorable move may adjust the existing stop to a break even although what we'll keep an eye on here is we'll leave the existing stop in in case there's a retest but if the price makes a higher low and bounces and makes a higher high then we'll consider adjusting that stop okay the other example which actually triggered yesterday we did an example of a buy stop on cisco on capturing the momentum as the price breaks through resistance that session will be at the end of this session uh once you see the end of the session you'll see a pop-up with a video and a playlist you can go ahead and click on those and apply that now basically we had entered that buy stop last week but it wasn't until yesterday that the price traded through that resistance and triggered that was a good till cancel now this was an example of a stock trade basically a hundred shares actually you know what let me go back and look at that i do actually have a stock trade and i do have an example of an option i may have done an option on that one let's bring that up actually it was an option so i have two contracts on cisco and that's going to be our final point here is in an option trade one may consider managing an option trade as far as profitability once you've hit a certain targeted amount uh or a return uh as an example uh let's see i think it was conoco phillips an energy trade where i have a january option uh we're up 143 percent if i go ahead and look at that particular position i'll go to the trade tab bring up cop scroll down on the option table it'll show your positions are now if you notice with some of the examples that i did on long options was typically going long a 70 a 60 to 70 delta well once the trade moves into more profitability those deltas will actually get higher and one idea is if your deltas if you if you originally do a 60 to a 70 and your deltas kind of go into the 80s to the 90s is consider rolling the option which means closing out the one position and then buying back a lower delta now notice the difference between these would be about thirteen to fourteen dollars per share therefore locking in some of those potential gains now we can do it in the same month some traders may go a little further out and get more time so let's say i'll go more time as well as price go out 107 days and i'll look for an option that's around 60 to 70 delta so here's a february 67 and a half so i'm going to do here is go ahead and right click on that existing position actually i'm going to go back to the monitor tab and do it i'm going to right click on this position create role and order and then go ahead and select that option by default it is going to go to the next month which you do have february but i believe i said that that instrument was 57 and a half and notice in this example if i select that just making sure i did that right 67 and a half let's try that again 67 and a half you can go ahead and see there's our potential credit there i just want to make sure i did that right but i selected that 60 yep 67 and a half so basically what we're doing is we're sweeping off part of the gains on this trade and we're giving ourselves more time to continue this potential trend so i'm going to go ahead and send that out there we go and boy folks uh looks like we are at a time there we did cover a lot of ground probably should have shaved off the last one and saved that for another time but it's very important to manage our existing positions make sure you go ahead and consider clicking on that survey giving us some feedback and if you enjoyed also what you learned here today click like that way other people are able to see this information so everything we discussed here today folks was for illustrative and educational purposes and not a recommendation to buy or sell any security any investment decision you make in your self-directed account is solely your responsibility have a great day folks we'll talk to you again real soon bye now
2021-11-05 21:24
