Using Candles for Short Term Momentum Reversals | Technically Speaking: Trading Stocks & Options

[Music] [Music] well good day everyone welcome to our webcast technically speaking trading stocks and options i'm connie hill happy that you would join me here today i've got a lot planned for you now some of you are starting to become better technicians right it's a process you'll learn different things today we're going to talk about candles and i want you to think about a question for you are candles seem realistic do they seem useful or do you think maybe it's just coincidence what if what a candle thinks maybe it might be uh emanating for the future i don't know is it real or is it is it just coincidence that things work out sometimes all right we're gonna explore that a little bit here today so many of you here joining me i appreciate you coming week after week we have the privilege of having barb armstrong in our chat today i love it when barb's here some of you call us the dynamic duo and i like that because i do think we're pretty good together between two of us we've got a lot of market experience and i love it when barb's here because she's very attentive and will help me answer your questions and i know we always get a lot of questions in this session well i need to remind you i'm on twitter my handle is at chill underscore tda barb's handle is at the armstrong underscore tda and we'll post a lot of educational content throughout the day because if we notice certain things we're going to post it and let you know about it here as well well i need to let you know that what we talk about today is for educational and informational purposes only not investment advice or recommendation of any security strategy or account type options are not suitable for all investors as a specialist inherent option trading may expose investors to potentially rapid and substantial losses while this webcast discusses technical analysis there are other approaches including fundamental analysis that may assert very different drew views a trolling stop loss or a stop loss order will not guarantee an execution at or near the activation price once activated they compete with other incoming market orders past performance of any security or strategy does not guarantee future results or success to do any back testing keep in mind it's theoretical in nature and nothing is guaranteed no soliciting uh no photography take lots and lots of notes here today now i am going to check the chats occasionally uh to make sure that if there's something i need to tell you that i do now uh those of you that are listening to this in the archives i know many of you do you can get your questions answered as well even though barb and i are not going to be sitting on your shoulder at the time but go ahead and type those into the the comments section and we'll go back and review those throughout the week get your questions answered quickly here as well all right our agenda for today let's do this one instead oh what happened to my agenda that's kind of funky let me just kind of go out here for a moment and here's the agenda all right i knew it would be here somewhere number one what we're going to focus on here today is identifying bullish and bearish candlestick patterns i want to explain to you the meaning of them how we might use them how you might use them technically in different types of trading styles or trades that you might want to be doing we're going to look at a lot of examples of some of these candles and we're of course going to do a couple of examples in our paper trade that we can track and follow and then i also want to spend a little bit of time focusing on some of our management of existing trades i think that's a good part of what we do is help you kind of see through the whole process so let's jump to it we're going to hop over here to thinkorswim and oh actually i don't want to go to think or swim i apologize i want to go to the next slide here my goodness i am having slight difficulties there we go that's the slide i want that we're going to spend a little bit of time on now i'm curious how many of you look at candlesticks kind of intently throughout the day or at the time that you're watching your stocks how do you really pay attention to that i'm curious go ahead and chat that in and let's talk about these candlestick patterns on the top first now we are going to look at these patterns uh and when it says it's bullish it means that it's reversing to become bullish okay these patterns are really helpful when we see them at a support level so i'm going to draw this line down here so you kind of keep that in mind that when we see this price action yeah if it's our support much more meaningful to us now these little lines here on each of these charts it basically is just a candlestick it's not any particular candlestick unless we show it to you and it also lets us know what has the short term trend been doing okay because we want to make sure we're looking at the individual candle patterns within that context because it makes a great deal of difference so these don't have to be anything in particular just the idea that they are having a short pullback not necessarily in a downtrend but just in some short momentum moves in fact if some somebody were to say you know what do candlesticks tell you the most connie with these types of candlesticks it would be momentum and changes in momentum or if we're likely to see changes in momentum all right kathy looks at him you say but you're a novice that's great that's all right this is an intermediate level class but we're get sometimes i throw these concepts out here in some of my other classes as well brenda was there for the previous one well brent we're going to take you on a little bit more of a journey with candlesticks rhonda always looks at him joe looks at him as well that's fantastic and rebecca said she always looks at them so i'm happy to know that you are kind of thinking about that before we're done i'm hoping more of you are going to be thinking about using candlesticks now let's just talk about this first let me clean this up just a little bit uh in case you're taking some really good notes so i'm going to draw my support line back here again but this first pattern we come to is called a dragonfly doji and the idea here kind of looks like the capital letter t sometimes it might have a little teeny shadow on the top but usually we call it a doji because the opening and closing prices are essentially equal there's not much of a body on this candle all right so that's our dragonfly doji now as we come the next candle down we can see same type of thing we're just looking for a little pullback in the candles and then we get this it's a hammer dead body is really small and the handle should be at light at least twice as long as the height of the body sometimes you'll see them really long which is just fine sometimes we might see a teeny tiny shadow on the top and although your hammer doesn't have a little bop on top mine doesn't either sometimes we'll say well it's hammer enough looking all right now we come to what we call the inverted hammer and basically it's just your upside down hammer right we have the price action being pushed down to this level and we're seeing a little bit of resistance we're seeing a little bit of maybe some bouncing activity that the price is starting to move up just fix something all right polish harami a harami in japanese means pregnant now you don't want to go around saying hey we've got pregnant candles here because people might look at you a little strange but that's what a harami represents in in japanese and some of you know the history a little bit of the japanese candlesticks and basically uh the asian markets the rice markets were using these types of showing price action for years and years and i'm going to say it was recently but you know kind of in my lifetime recent that that candlestick language has been brought over the western world and we're being able to utilize it as well there might be some like old-time timer or traders or investors in here i don't know if we do but some of them may have been using bar charts and so getting used to something as a candle might be a little bit difficult i grew up on candles that's why i learned to read charts initially so to me i'm very comfortable with them okay but here we've got the woman all right there she is and this would be like the pregnant little baby here the body of this is completely contained within the body of this bearish candle some of these candles it doesn't matter if they're bullish or bearish unless it's marked up like this one so this red candle basically means it's a bearish candle on your charts you may be colored a red or maybe it's a solid black okay just that idea it's a bearish candle closed lower than where it opened and then we've got some price action now notice this little harami is a little bit further into the previous candle than say the inverted hammer or the hammer art okay it's a little kind of a little bit more evidence then we get our piercing line again we have a bearish candle here this second candle we want it to be pretty substantial and we want it to go all through the midway point of the this previous bearish candle and the further that it goes the stronger that meaning is can you see how maybe something here with a small bullish body compared to a bigger bullish body maybe sends a stronger message okay that could be the case then we've got our last one our bearish engulfing candle and i bet a lot of you are familiar with this this is the candle that completely eclipses the previous day's candle okay so there's our bearish candle maybe i should have used a darker marker here but man this one totally engulfing is exactly what it does uh basically it's the whole body of that candle eclipses that previous day's count candle and so all of these are indicators that the momentum might be changing now i kind of asked you at the beginning if you thought maybe there was something to the candles or you know maybe it's just phooey right or if it's something that can be i'm going to say relied upon and used you're going to get to decide or is it a coincidence that things follow through now let's look at our bearish candles here our bearish candles essentially mean we've had an uptrend we've seen the stock going up and it maybe is that resistance here as well so i'll put my resistance line and then we're looking actually they're just the opposite of what we're seeing so this one's called a tombstone doji uh the uh annotation here is the idea that again the opening and closing price are similar at one point the bulls drove it up to the top but then it got pushed down and it kind of gives this imagery of a death to the uptrend it's not like a whole major trend but just the small momentum moves that we observe now the second one is called a shooting star and it looks like the hammer except that it's what it's at the top of some upward trending candles and sometimes we'll see some examples of these sometimes the shooting star can be a little bit higher sorry that's that represents a body okay it might be a little bit above the price action here as well that's shooting star uh this one hanging man kind of sounds deathly doesn't it right so we've got our uptrend essentially we kind of have this hammer but it's right here at the top of the uptrend signaling the end of the uptrend the price of the stock got pushed down lower at one point and then it kind of rallied up and it's closing up here near its high and so that's why it gives you the idea that maybe we had the up run and now it's going to start to fall apart we have our bearish harami same thing pregnant candle this body has to be included within the body of the previous day's candle that's bullish and this one is bearish then we have our dark cloud cover it's going to rain on the parade it's going to rain on this nice little uptrend here again this has to be a bullish candle and the same thing here we're looking for the body of this bearish candle to go deep within the body of that previous candle that's bullish okay that's our dark cloud cover and then we get our bearish engulfing just as powerful as our bullish engulfing because it totally eclipses that bullish candle and there should be uh kind of the message here is that the stock the momentum is definitely shifting here now uh can news he can news uh trump any technical indicator including candles yeah it can't even though these are strong candles and the meanings are fairly strong you may see things that or see things in the news like earnings like biotech announcements that completely annihilate any technical signal okay so remember that news can trump whatever it is that we might be seeing in the candles uh let's see what yuka yuka says here the most right candle is viewed as strongest ieg bullish engulfing is the most bullish yeah it you get very good it is showing the biggest swing of momentum okay so yeah the engulfing uh would be considered by most people and technicians stronger than say uh the hanging man or maybe the harami you know that are up on more to the left side here so very good rodriguez says thank you i got got same dollar signs not sure what that means but okay all right let's go out to our charts let's look at some things now uh this is going to be your first candle to interpret here i'm gonna bring up an image and let's see if i can just tab to it uh here's our first image all right this is a chart chart kind of looks like a plant but does this image look like any of the candlesticks we looked at earlier here does this look like anything i'm putting it like side by side yeah this kind of this is a little insect i found on my bushes a couple weeks ago and some of you might go i've never seen that before that kind of looks like a dragonfly right we've got this long long shadow down here white arms it does happen to have a little blip on the top sometimes they will sometimes they won't all right now we'll get to the real ones i am going to do though i'm going to put a little cheat sheet up here for you so i've made this little candlestick small this little graph so that you can see as we look at some uh examples kathy she says is it a dragonfly absolutely it is um sv says will candlestick patterns work in intraday also on only date candles the answer to that is you can use them in any time frame but in order to have a completed candle we have to get to the close of that time frame so if we were looking at daily candles that would mean that we might see something at the beginning of the day and then it maybe turns out to be something else okay so let me adjust my charts here and i'm going to just pull this over here and i'm going to let the candlesticks they can they can be on my calculator i don't care about that all right so there's your cheat sheet let's take a look at some afrm affirm uh these things are uh i i believe they're put in the technology information technology sector and i'm going to kind of zoom in here and of course i looked ahead and marked out some potential candlestick patterns that we can look at and then see if it really did what we thought it might do okay so let's start over here on the left hand side of the chart let's get rid of those uglies all right come back there we go and we're going to look at this right here now first of all i want you to think to yourself what candle is that what do you see right so we see little let's get our candlestick guy back here though uh we've got some price action the price of the candle is pulling back and then we have a bearish candle here maybe i'll even zoom in a little bit more here so we have some pulling back we have a bearish candle here and then we've got a big old what hopefully this is one you recognize yeah bj's saying that's a bullish engulfing candle yeah majorly eclipses this previous day that is showing really strong momentum that maybe it's shifting and then we look and see well did it do anything after that did it really change it'll really change direction as far as the little uh momentum shift and it looks like it sure enough did because the next day it gapped up quite a bit then it kind of held those gains for a little bit of time okay several weeks ago we were talking about reversal price patterns when we were talking about reversal price patterns we were looking at things like head and shoulders inverse head and shoulders double tops triple tops double bottoms triple bottoms those are intended to say hey the overall big trend might change these candlesticks that are basically some real time data is how i like to think of them are not shifts for the whole trend of the stock although sometimes that can happen but just the momentum just in terms of short-term moves okay it's going to be really helpful to short-term traders and swing traders and somebody that's maybe a longer term investor might look at these candles and say oh that's nice i know what it's going to do the next day but maybe it's not a big influencer because maybe somebody's planning on staying for a long period of time as long as the trend is intact uh let's see all right doug h m oh i might have killed that yeah you're all noting that it is an engulfing candle hm says it forms a small island pattern down there sometimes we will see an island candle and essentially something like that is more than it's gap down and it's kind of by itself okay so yeah we can see that sometimes all right how about this one right here next pattern over we've got a little bit of a pullback we've got a bearish candle here and we have a bullish candle coming on the scene right next to it does that look like something familiar now it's not engulfing because it doesn't eclipse the entire body but it is going a decent way into the body okay does that look maybe like uh uh something over towards the right edge of our examples does that look maybe like piercing line yeah good job you guys kathy uh bjc no wait maybe it's a harami i would say vijay it's kind of looks similar to harami but because man that body is to me they are almost equal looking but usually on a harami the this little body here is kind of a small square body it doesn't have to be square exactly but i'd say it represents or looks more like a piercing line very good those of you that use candles or not candles bars martha says hey that's an inside bar and that is the terminology when we're just looking at bar charts absolutely good job all right up here at the top we've got some swinging momentum up here with three bullish candlesticks and then we've got you know our candlestick here and then we've got our red candlestick here all right so we know okay it's probably indicating a little bit of bearishness so we'll look at the bottom row which one does that look the most like uh it actually looks i would say most like the dark cloud cover okay the body is well within the day of the bullish candle it has a little bit of its body outside of the body of the bullish candle that can be something to indicate that as well that that's what we might be seeing there uh so definitely the question here some of some of you might have this question as well what's the difference between red and green uh on my charts i have my candles filled in okay so whether it's on a a red candle means it closed lower than where it opened opened up here closed clear down there and i'm saying colored and red sometimes people use black all right so you might see that sometimes uh the green candle means it's a bullish day the price of the stock closed higher than where it opened so we'll use this as an example price started clear down here went a tiny bit lower that's what that shadow is i had a big strong body a big tall body usually indicates uh strength of the move so little candles not so not so strong big candles very strong and so it closed here it did go up a little higher at one point uh which is what that little shadow on the top is but then it ended up closing a little bit down below that okay so some others might have had that question no problem okay let's look at something else here let's take a look at something that we're going to start mixing in some potential uh paper trades for us we're going to bring up smr stock i'm going to zoom out a little bit let me collapse that and let me kind of bring up my standard look that i like to have here have my reminder to remind you to subscribe to our trader talks channel so you can keep getting this type of information versus you know the latest monkeys video or whatever okay uh so smr i've got a little bit of drawing on here i'm going to zoom in you're noticing we are not using any other indicators today we're not even using trend we are simply trying to identify short term swings of momentum now i do have to tell you something started to be drawn on here a while ago and i would say this probably represents a nice flagpole almost a straight vertical move up okay and then we have some consolidations that some people might look at that and say oh that's the flat pattern yeah it looks like it is but i for you right now what do i want you to look at i want you to look at these two candles okay so we've got kind of a little pullback short-term momentum pullback bearish candle uh it's kind of big right and it goes down this low at one point uh but it ends up closing down here and then we've got this green candle that's totally inside the body of the bearish candle oh i forgot to bring our cheat sheet back up uh actually kathy mentioned something else i'm gonna read because that's a good point i i appreciate you bringing that up uh she was mentioning this to tucker sometimes the green candles are depicted by outline and kind of going back to our little cheat sheet here yeah so this candle here is open and sometimes bullish candles are that way i have mine filled in because i think it's easier for you guys to see but yeah sometimes a bullish candle will be we'll call it hollow and not filled in with color so appreciate you bringing that up all right uh doug's got a harami kathy's got a harami hm's got a harami yeah that looks like a pregnant candle formation doesn't it okay what's the meaning the meaning is the momentum is starting to shift now some people might want conformation with some of these candlesticks okay some might want to go let's see what happens tomorrow right maybe tomorrow you're like let's see if it really does go up and there might be some people that say you know i i think that that harami is strong enough the way that it looks or maybe after you've looked at a lot of harami's you uh kind of feel like yeah many times they do indicate that direction we'll notice we don't have any earnings in the way here so no corporate actions to maybe trump whatever we might be seeing okay so it could wait for confirmation uh you don't always have to wait for confirmation you'll develop opinions on that as you study as you'll look at some different charts so for us today even though i am also seeing account a flag pattern here if we were basing this move completely on the flag pattern we would say it hasn't broken out of the flag pattern yet we're going to take a trade here because of the harami right we're going to read more into the technicals of this chart doug says you know he might want to wait for a cahold you certainly could but because we're talking about just candles today we're going to go ahead make a trade on it so come over here to the trade tab and if you're somebody in this class we talk about both stocks and options if you're somebody that's trading stocks you if you're taking that signal per se you might do a practice trade on it just with the stock okay it's a lower price stock so that can be really nice especially if you're working with a smaller account sometimes it's nice to have those smaller price tags here however one thing that i was looking at was this i was looking at the 15 put in september would be selling about 36 days of time over here is my little window of open interest and 140 is not a ton of open interest but if we're just selling one or two contracts it can be sufficient right we're not going to be we're just going to make a little splash in the not pond per se so for our purposes what we're going to do is we're going to sell that put when we do so we are potentially obligated to to take ownership of the stock if by options expiration day you're still have that short put and if it expires at least a penny in the money it's likely that you're going to be going to be assigned the shares of the stock and so for one contract it would be 100 shares of the stock well what if i like it right if i like smr i'm thinking sweet i want the stock anyway so with this strategy sell puts on stocks you wouldn't mind owning but this is how some people would look at it that say well i'm going to receive here uh a buck 60 would be the credit coming into the account possibly a little bit more if you get a midpoint price and you could take that and use it to offset the cost of the stock so let's suppose it is put to you okay uh let's suppose you leave it alone because you don't care if it's puts you or not well if it's put to you you might think of it this way you might go well i bought the stock for 15 bucks a share but i got a buck 60 back or 160 dollars that takes the net of what your outlay is 15 minus a buck 60 says what that's going to be 13 and 40 cents that you would be kind of looking at your net position on it okay some people sell puts just for the income and they may go close it out maybe when they get a large majority of the buck 60 this stock starts racing up all right if that harami really is telling us that there is a shift of momentum and it goes up then uh we'll would probably sit in this position just take the cash okay but we're prepared either way to take on that obligation so i'm just going to do just a regular click on the bid price i am going to go for the midpoint price here uh see if the market will work with me a little bit we're just going to do the one contract we've talked about the obligations here we are not going to put a stop loss on it because we the intent is we want ownership of the stock and i wouldn't want us to be taken out of it but it's something we'll look out every single day if it meets a criteria where we would get out of a stock position we would want to get out okay so uh we're risking basically we could have a max loss here if the price of the stock just went all the way down right it's showing us what our max theoretical loss could be max theoretical profit would be about 165 dollars uh let's go we're going to go ahead and hit uh oh we're going to put this in our account where we keep track of our trades right there let's do another one a question in here a texas how to find stocks with higher premiums that would be a topic for another day and i have taught that in fact if you go back to the archives maybe about two weeks ago i did show you a scan that was specifically for spreads where you can put in the criteria and have it bring back the type of return that you're looking for so maybe go back two or three weeks and you'll be able to find that doug cathy's is in your experience which is stronger a bull flag or a harami uh we're talking actually about two different things here the um the bull flag is actually a price pattern on the stock right where if we come back here that is a bullish continuation pattern okay the harami is more short-term momentum so the flag in and of itself if we're doing flagpole we take the height of the flagpole where it breaks out and expect it to get a similar move if we're putting in like a target so it's not so much that one is stronger than the other but actually both of them are pretending strong bullish activity this one is the flag's pretending a large move the harami itself is looking like the short-term momentum is shifting okay so that's how i would answer your question there kathy all right uh somebody said maybe we could do a spread with that rf says yeah maybe we could do a 15 1250 spread absolutely you could approach it that way let's take a look at another stock here mtd uh r i did that wrong m t d r there we go matador this is an oil and energy stock i've got a few candles marked out on this we're going to do them a lot more quickly though we're going to go what have we got here oh what does that look like we've got a kind of this is kind of interesting we've got a little pullback the stock had been heading up have a little bit of a pullback oops let's get the cheat sheet out there we go little pullback and then uh this one's a little bit trickier in that uh it's not very perfect okay some people might look at this as a harami usually the harami baby's in the middle of the candle and not necessarily way at the bottom away at the top so we'd say it's i many times will say it's whatever the candle pattern is looking okay what do we got going here we've got a run up uh we've got what here well we might look at that and go man that's a bearish engulfing it's totally engulfing this candle and this candle and really these two candles if we're looking at this on a weekly chart we might go whoa that's a huge bearish engulfing candle technically it is eclipsing the previous day and then down here we already talked about this one a little bit we saw another example of it pulling back of the stock looking for a change of momentum here's our bearish candle here's our bullish candle uh so it's not as strong actually of a piercing line as we what we might like to see would like to go see it go deep within the body of the other but it's not really a harami or any of these other patterns that we've talked about as well all right let's see what we've got going on with this right now though i've drew in here it's a little bit of technicals okay uh part of that is that i've got this diagonal line here that it looks like it just kind of shot through today uh the engulf or the camera we might be looking at here is probably another strong piercing line looking for a little little pullback but looking for the momentum to shift back up and it has done so now this one we're not going to use the candle formation as the entry signal we're going to take the break of resistance that diagonal resistance as our entry signal and i would say this line that i had here maybe has moved a bit the range on it so i'm going to adjust it so come on uh activate it here we go i would probably shift it more into this range right stocks running up to resistance i actually have that big bearish engulfing candle right at resistance and then uh here most recently we had that piercing line and then i would say it's it's gapped over two areas of resistance as well okay so on this metador is a stock that is not incredibly expensive it is a 60 stock some of you that are stock traders might be interested in for a stock trade uh for us we are going to buy the stock and i'm going to just go through our stop loss here real quickly if the stock here breaks down below this support area that's horizontal it might not be that big of a deal if it gap if it comes down here below the diagonal resistance at this point then it would be telling us it was a false breakout so i'm going to put our stop in the neighborhood of about 55 28. just kind of eyeball that a little bit where we might want that so as we come back here let's do a right mouse click let's say by custom with a stop we're not going to put in a target here all right we're going to put our stop loss here at 55.28 that gives us about five dollars of risk on the trade typically we don't want to risk more than 750 dollars in a trade so that kind of works out good we'll keep 100 shares that is the default and thereby risking say 500 if it came down hit that stop loss which is well within our 750 we like to stick with we're going to go ahead here notice it'll trigger a market order if it gets to that point or lower we're going to hit confirm and send that red notice comes up letting you know the price isn't guaranteed but it will be activated and then tried to get filled quickly for you and we'll go ahead and put it in our bucket there all right those of you that maybe are more option traders uh one thing that we might do here and i will add it after the fact is some september a bull put spread here doing the 57 50 55 i will put that in after our class is over so that we can track that as well all right now some trades we need to follow up on and we've had a lot happen in our account so let me just kind of get rid of this and stretch out this a little bit all right that's a little bit better okay first up we need to look at aehr aehr as we come back for positions ah it's not on here anywhere last week we put on a four percent trailing stop on this stock and it triggered us out on i think the very next day we come over here aehr we had our 418 shares uh you can see there was a trailing stop loss i mean this is the trade history this is what actually happened so we bought the stock for 11.62 this part is kind of interesting this doesn't happen a lot so i do want to show you the stop loss that was filled was looking to get filled around 1430 when it got to that price it would trigger the market order lucky for us we got filled at a nicer price we got filled at 14.55 okay so we made a little bit more on that trade uh we took advantage in the end i ran the numbers it looked like a 20 plus gain on that particular trade however i want to bring up the stock did we do the right thing okay so it's good to go back and analyze it here uh and so this is when we got into the trade on the fourth which is when we met the last time this green candle day we put on that trolling stop loss and what happened it went up and then it must have pulled back at some point during the day four percent and it kicked us out of the trade well what's happened since then boom boom boom boom boom did we leave some money on the table with that particular one we did uh that gives us an idea that you know maybe the stock is a little bit more volatile than expected and maybe maybe using a bigger trailing stop would have been more appropriate or letting if somebody's doing a trend trade letting it kind of uh evan flow as long as the peaks and and troughs are continuing to go higher on this one we got kind of a surprise and we wanted to lock in gains which is why we use that stop loss um this one i do want to show you real quick a r r y we got into this not very long ago a couple weeks ago we had a stop loss right here what happened to the stock it gapped up right huge bullish candle here which was nice and then what what are we getting today if we think about the candles whoa okay we got a dark cloud cover all right short-term traders would pick up on that and go okay maybe momentum is going to swing we never know until we get confirmation or no confirmation the next day but that might be a clue to a short-term trader now what happened on this we have the stock and we bought an option and let me just type this in here real quick yesterday we were looking nice on our option trade and so i manually went out and took profits on it okay so we had two calls for october now you might think oh october we've got plenty of time we did buy plenty of time but when you make your profits you might want to just lock in and get them so we bought the calls for 2.95 we sold

them yesterday for 8 10. we had a couple of contracts here so that was a nice little profit if we had waited until today there's a good chance that well it would definitely be lower than what we we got out here yesterday and i think it actually it ran even a little bit more after i exited the trade so we could have left a little bit of money on the table but had we stayed in it and we i said well let's just wait till our class i don't think the profits would have been high as we look at that all right one last trade here um [Music] one of our stocks hit a stop loss here mrna let me see if that's right uh on our monitor let's get rid of this and come back here oops right there mrna we still have a longer dated we don't have the stock we have a longer dated call option for january we're down the trade a little bit but nothing too excruciating okay so we're gonna let it roll we're gonna keep watching it uh on that very good we had a lot to get through here today any questions on anything that i need to to wrap up on here hm so we look at the candle ignoring the color of it actually color is part of it i think that question came on a-r-r-y so the color's important because this tells us today it's a bearish candle it opened up here but right now it's trading down here and is looking like at least right now that it's going to close closer to its low and it's that piercing line pattern showing hey potential change of momentum now how many of you think it's coincidence with candles you don't have to answer in the chat you can if you want some of you might think it's coincidental some of you might go maybe there's something to this we were able to go through our agenda put on a couple of new trades we're gonna track managed a couple of existing trades and we're still tracking with some of those uh for you i want you to go in and look at your watch list and see if you can start identifying some of these short-term candle potential momentum reversals okay do it today while your mind is fresh on the concept and then as you're looking at shorter term trades you might want to pay really good attention to what the candle is saying barb i appreciate your help here today these guys have had some good activity with us appreciate all of you joining me here today now james boyd trading the trend is up next barb's let us know that appreciate that i just need to remind you that what we talked about today is for educational purposes only not investment advice or a recommendation of any security strategy or account type we talked about technical analysis uh past performance of any security or strategy does not guarantee future results or success all right you guys have a great day we'll follow up on some of these trades next week as well as some other aspect of technical analysis have a great day everyone bye-bye [Music] [Music] you

2022-08-13 04:54

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