My Setups

 Getting closer to the point I will be back trading full time.

Need to label my setups permanently, not just a count of variables.


TALK ABOUT MAs

Coil or spaced apart? 


SPY/QQQ

I am only selling options on these. Daily chart does not mean much in terms of what I would call the setup. Not to say it doesnt matter, but I only take the trade based on intraday action.

Reversals

Breakaways.

Thats it. Only those 2. 

Reversals after long multi hour trend break. A mean reversion play.

Breakaways from either vwap or a range. 

Both need internal cues in order for entry.


Stocks

Multi Year Vol Prof Break

ABBV is a setup I am watching.

2 Year long consolidation. At bottom of Value Area and Vol Pro zone.

-With Trend.
-Also a monthly Vol Prof breakdown.
-All Mas in Favor

I think I need to focus on as little as possible.

Just a picture of the price action is what I need to name the setup on. The other variables give it a rank but do not change the price action setup itself.

ABBV is a multi year consolidation break and trend continuation. 

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LMT is a very tight prominent Vol Prof Break. This is much tighter and built up more in a range than ABBV was. That is note worthy, that means this is a different setup. 

This is a Tight squeeze trend earnings continuation.

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CNC is a multi year consolidation


But it is also coming out of a long bottom. 

This is a multi year, trend reversal bottom squeeze. 

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FUTU is similar. Multi year, bottom squeeze.

But it has a longer trending up base. So this I would qualify as a trend continuation. 

FUTU is a multi year consolidation bottom squeeze trend cont. 


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So already I have some clear themes

1. Mutli Year Consolidation.

2. Trend Continuation.

3. Trend Break. HH if from bottom, or LL if from top.

4. Squeeze. (Trade direction is long after a long period of stock decline)

5. Flush. (Trade direction is short after a long period of stock advance)

6. Bottom (Location)

7. Top (Location)


I am not a position trader so it doesnt make sense to look at the Monthly for anything other than multi year consolidation.

Trend is best to look at last few months to determine up or down. 



MRK is a Trend Continuation Flush. 

-Trend Cont because of decline for last half year with LL and failed HHs turning into LH

-Flush because Monthly chart has moved up over a few years. 

The market profile/Vol profile is a given on any of my trades. I do not take any trade that does not have a clear 'edge' or 'cliff.' I want to take the trades that are right on the edge about to jump or fall off. This is also known as balance or imbalance. I am looking at trading points where the market enters imbalanced territory. 

Because this is a prerequisite for any trade, I dont need to include it in any setup titles.

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CP is a Multi year Trend continuation flush. 

    -Trend lower past half year, Flush because of large advance, turned into sideways market for a couple years. 

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APP is a trend cont bottom squeeze

Not multi year because only 1 year in this range.

Trend cont as it has risen for nearly all 1 yr,

Bottom squeeze because big Monthly picture stock has been crushed and sold hard. 


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So it looks like I have 3 separate tags.

-(A) Multi Year or not

-(B) Trend Cont or Break

-(C) Flush or Squeeze

    -Flush only if Long Term trend up ending/ended recently

    -Squeeze only if Long Term trend down ending/ended recently


And then some rare tags that can be thrown on as well

-(X) Tight (LMT above)

    -Vol prof thick and tight

        -As opposed to wider and longer range

            -Not clear edge

-(Y) Coil (MAs 9,20,50)

    -If 9/20 and or 50 are all coiled next to price that adds power.

    -9/20 most common

    -if 50 involved to, meaning 50ma is within half a percent of prev D candle range, then calling that the     money coil.



So I can label all my setups as 

(X,Y) A B C


I have gone through this process so many times it hurts thinking about it. This is about as simple as I have ever had it. This is just the labeling. The ranking however is where all the excess variables come in and it can be a 10/10 or a 5/10. 

In my spreadsheet I will have 5 new columns

Tight   Coil    Multi   Cont/Break   Squeeze/Flush   Money


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