There are a few🗒 things that I want to go over before showing the actual strategies.

When you are Day Trading, you are essentially buying and selling the same day.

A single Day trade can take about 5 minutes - several hours.

As long as you sell it the same day, it’s a DAY trade.

ALWAYS RISK what you’re WILLING to essentially LOSE.

Of course you don’t want to lose it, but make sure ego always have that in your conscience.
Always come in to the market without a BIAS.
Meaning, don’t come into the market expecting a stock to go a certain way.
Always be OPEN to directions

Whenever I come into the market, I never have a bias of where a stock may go.
If a stock that I’m looking at, meets my requirements for an entry, I will enter it in the direction
that the stock price is potentially pushing / breaking.
For example,
Let’s say the Market just opened.
You are looking at stock XXX because there was great news the previous day.
You should never have a bullish BIAS, just because of the news.
The price will always usually react to sentiment, not news.
Although news can create sentiment, it may not be the case for some occasions.
Back to the stock, let’s say stock XXX falls at market open, and continues to go down, and
passing the support line.
In this case, if it meets your requirements for a potential PUT entry, that’s what you execute.
Just because it had great news the previous night, does not determine its “bullishness” the next
morning.

With that being said, NEVER have a BIAS.

1️⃣ Make sure to have SUPPORT & RESISTANCE

lines drawn on your chart.

To have an established SUPPORT & RESISTANCE, you must use the 2-3 touch rule.
Here is an example of an ESTABLISHED Support & Resistance.
Notice how SUPPORT & RESISTANCE also creates ZONES.
Since the prices can’t be PERFECT all the time, this creates “zones”.
If the past resistance is .50 cents away from the new resistance, that .50 cent difference turns
into a zone.
Notice the top “RESISTANCE ZONE” and the bottom “SUPPORT ZONE”.

This zone acts as a support area.

This means that whenever the price retraces to this ZONE, the stock may bounce.
Which essentially means…….
The BUYERS control this support zone.
The SELLERS control the resistance zone above it.

The next time you create SUPPORT & RESISTANCE,

Always use the concept
“BUYERS” & “SELLERS”.
Here is an example of how your SUPPORT & RESISTANCE should look like.

You can see that the SUPPORT & RESISTANCE from the left, retests itself on the right.

What does this mean?

This means that once buyers & sellers establish their levels, these levels will continue to serve
as areas where the buyers/ sellers will then buy or sell back at that same level.

This is why you’ll have resistance & support levels from the past retest again in the future.

The buyers and sellers continue to hold the area.

This is why it’s important to identify these levels because once you’re able to find the most
established levels, you can GAUGE buying & selling strength just from the amount of times
these levels retest over the time frame.
Going back to the example….

Look where there was a

“HARD INDECISION AFTER GAP UP”
You see how far apart the “Hard Resistance” & “Hard Support” is from each other?

That is your potential move for a trade.

Let’s use the first strategy we’re

going to talk about.
We’re going to be using the “TTM
SQUEEZE” as our first indicator.
The TTM SQUEEZE captures the
moments where a market is in a
period of consolidation right before
a big move.

Now.. you can see that it made a

HUGE move to the upside but
failed to continue and instead
started to consolidate HEAVILY,
thus triggering the squeeze
indicator to indicate a
consolidation.

When you see this consolidation,

especially after a big move, the
first thing you want to look for are
the candles.
Just by judging the candles, which
seem more likely?
In this case, after the big move the
sellers stepped in and pushed the
price down to the “HARD
RESISTANCE” which turns into
support.

When a resistance turns into

support it is usually a good sign for
a continuation to the upside.
But in this case we had an EMA
crossover to the DOWNSIDE as
the price was squeezing.
The exponential moving average is
a line on the price chart that uses a
mathematical formula to smooth
out the price action.

An exponential moving average

tries to reduce confusion and noise
of everyday price action. Second,
the moving average smooths the
price and reveals the trend. It even
sometimes reveals patterns that
you can’t see. The average is also
more reliable and accurate in
forecasting future changes in the
market price.
Now, when you have a SQUEEZE
+ a CROSSOVER,
This is usually a good signal. In
this case, this is a signal for PUTS
because the 9EMA crossed below
the 21EMA.

What about the profit target?

Since you entered at the “HARD
RESISTANCE”, your profit target is
the nearest support, which in this
case is the “HARD SUPPORT”.
ONLY MAKE CRITICAL / HARD
LEVELS YOUR PROFIT
TARGET / ENTRY.

The reason why you make the

critics levels your profit target /
entry is because these are
ESTABLISHED areas.

You have to find the levels where

the buyers and sellers are known
to test the most.
The more times it becomes tested,
the stronger the level.

How far back can I look?

You can go as far back as you
want when looking at levels.
There’s been times where a level
has tested years prior, and it
continues to test in the present.

Be very vigilant and thorough

when making these levels.

MAKE SURE WHEN YOUR

PROFIT TARGET HITS TO TAKE
YOUR PROFITS.
ALWAYS FOLLOW YOUR RULES
& PLAN!
This strategy is called the “CROSS
- SQUEEZE”
This is very similar to the last
strategy, it’s just that in the case,
you don’t need an established
support / resistance as an entry.
In this example we have a small
consolidation range,
And our entry in this example
would be the breakout of the
range.

But before that, you want to have a

Squeeze followed by an
INCREASE in VOLUME with the
crossover.
You enter as the candle breaks
out!

Your profit target can be the next

support.
Here is an example of what an
actual “BUYING ZONE”
looks like.
“BUYING ZONES” are essentially
just areas where the stock was
previously trading at, but is now
trading higher than, because of an
INCREASE in DEMAND.

When you get an increase in

DEMAND, it pushes the price
higher. When the DEMAND
increases right at a Resistance line
(as you can see on top), the
resistance then TURNS into a
SUPPORT level.

In this example, you can treat this

bottom area as “BUYING ZONES”
because the support has held for a
few days.

This means that in those few days,

the buyers have been strong
enough to sustain the price
ABOVE the support.
Once you have the “BUYING
ZONES” established, you should
color the box GREEN.
This way everything is color coded
and you can spot these areas
better, at least that’s what I do.

The green area let’s me know that

these are “BUYING ZONES” so
that I won’t easily sell my position
just because it’s going against me.
I can use the BOTTOM of the
“BUYING ZONE” as my stop loss.

This is a REOCCURING sequence

that forms so very often.

The BEST way to use the AHPMB

(After Hour / Pre Market Breakout)
strategy is by FIRST looking at the
previous days HIGH / and or
previous days CLOSE.
Then what you want to happen is
you want the previous days HIGH
or previous days CLOSE to be a
resistance level throughout after
hours / pre market.

This means that this high or close

has been established as a HARD
resistance.

Because what usually happens is..

after hours / pre market you can
see very big moves because this is
when Institutions will step in to
buy.
In this strategy.. you want to trade
the OPEN, or CLOSE to the open,
and what you want to do is wait for
the VOLUME to SPIKE, and the
EMA to cross.

You want to set your STOP LOSS

a little BELOW the RESISTANCE
and you want to be patient
because sometimes it’ll RETEST
the resistance turning it into a
SUPPORT, and then finally
launching up.
Here is another example of
establishing HARD SUPPORT and
HARD RESISTANCE.

If you have it simply like this, you

can’t really tell if there is more
BUYING STRENGTH or if there is
more SELLING STRENGTH.
What about when I color code the
zones?
See how much easier it is to
understand SUPPLY & DEMAND
when you have this zone on?

Treat the NON colored zone as a

NEUTRAL zone.
The NEUTRAL zone can have
either buyers/ sellers within the
zone, but as it gets closer to its
RESISTANCE or SUPPORT,
depending on which color it comes
close to, expect the buyers /
sellers to come in according to its
respective color.

Let’s take a look at a 1 HOUR

RANGE strategy.

In this example we have a 1 hour RANGE that lasted about 6 days.

In this example you want to first wait for a CROSSOVER to happen.

Once the crossover happens you want to look for RESISTANCE ZONES to break and HOLD
before entering the breakout.
Look at the first ORANGE arrow.
You can see it broke above the first RESISTANCE zone and sold off.

Look at the GREEN arrow.

You can see the price broke above the zone again, and this time you have it HOLDING.

Look at the EMA’s on both occasions.

You can see one started to point down and eventually cross,
And the other stayed pointing UP.

You can also GAUGE the VOLUME bars on the bottom.

On the left example the VOLUME kept repeating red and the right, BUYING volume came in
every hour.

You want to either enter at the PRE MARKET high level or the level where it actually breaks out
of its range.
Let’s look at this GAP on HD.
We are currently looking at a 1 hour time frame.

We are looking at a span of 19-20 days.

You can see the GAP on Day 1.

You can also see that on DAY 6 it FILLED its GAP but then SOLD off.

What does this mean?

This means that there are LOTS off sellers sitting at that GAP level.

You can see on DAY 10, it sold off again after retracing back.

When you see a level that has such strong sellers, you ALWAYS want to establish this on your
chart.

Yes you guessed it.

Color code!

This selling zone let’s me know NOT to TRADE CALLS whenever we get back to this ZONE.

There’s no point because it’s already rejected 2 times in the past.

The only way I would trade CALLS on this is if it BREAKS OUT of the zone and is ABOVE the
ZONE.

Let’s move on to the 5 MINUTE chart.

In this example, you want to make sure to use the PRE MARKET / OPEN RESISTANCE
LEVEL.

You want to wait until the RESISTANCE level has been tested multiple times… especially on
the first 5-20 minutes.
We’re going to do some price action analysis here.
Look at the HAMMER formed on the 2nd 5 minute candle.

This lets us know that there are ALOT of buying interest.

The only times that CANDLE formations are considered SIGNIFICANT is when these candles
formed RIGHT AT the RESISTANCE or SUPPORT.

Always remember that!

Let’s look at the example here.
We are going to be looking for
AFTER HOUR / PRE MARKET RANGE.

You want to make sure the RANGE starts at the CLOSE / AFTER HOURS.

This is a PERFECT setup.

We’re going to use the RESISTANCE LEVEL as the ENTRY for CALLS.

In this example there are 2 WAYS to trade this.

You can use this SIMPLE BREAKOUT as a factor in why you should enter, or if you look
CLOSELY, you can actually see a Triangle formed.

You can actually combine these two,

Which gives you a HIGHER CONVICTION.

By using the triangle + the range + the resistance as a reason for entry, you are taking
advantage of FACTOR COMBINATION.

In this next example we are going to utilize Pattern Recognition on the hourly frame.

This strategy is simple.

You want to spot a pattern,
And trade the breakout.
Since you are looking at an HOURLY CHART,
The breakout will be significant so essentially you can even SWING the breakout.

Let’s look at another Pattern Recognition example.

Here we have an Ascending Triangle on the 1 hour frame.

Look at the bottom Trendline as moving up.

This is showing you that the Buying interest is increasing.
This is why you see the support sloping up.
When it slopes up, it means the buyers are holding this down.

Another Pattern Recognition strategy, this time using the 15 min chart.
You want to find the next RESISTANCES ABOVE THE BREAKOUT, and USE THOSE levels
as a profit target from the breakout of the pattern.

In this case, this stock does not move much in a day, but that’s besides the point.

Having levels that are ESTABLISHED, is KEY in finding a CONSISTENT strategy.

You see how AFTER the breakout, the price retested to the PREVIOUS RESISTANCE, and it
STRUGGLED to break it for the first 2 hours.

Pattern Recognition on smaller time frames.

This time on the 5 minute chart.

Here we have an ascending triangle that formed beginning in pre market throughout the first half
of the market when it finally broke out.

So, here’s the thing.

When you find a PRE MARKET RESISTANCE, and when price OPENS, it can’t break that
resistance, EXPECT THE PRICE TO BE SIDEWAYS AND FORM A PATTERN, especially if it
can’t break its support either.
In this case, you want to WAIT UNTIL a PATTERN FORMS and trade the VOLUME breakout.

Why the VOLUME BREAKOUT?

Because if the stock can’t break RESISTANCE OR SUPPORT near the open,
Then it never HAD VOLUME to begin with.

This is why the VOLUME BREAKOUT is CRUCIAL.

Here is another PATTERN RECOGNITION strategy, mainly used for swings because it’s most
beneficial, but this applies to daytrades depending on when the breakout happens.

In this case you FIRST want to have the RED stochastics line cross, THEN the EMA
CROSSOVER.

You want all of this to HAPPEN RIGHT BEFORE the Breakout.

Execute on the BREAKOUT.

When using STOCHASTICS SLOW INDICATOR,
When the red line goes above the BLUE line, this means that the BUYING momentum is strong.
Same goes for the red line going below the BLUE LINE.

ALWAYS, ALWAYS make THESE RESISTANCE LINES.

For 4 consecutive days, trading the RESISTANCE BREAKOUT by itself worked on TSLA.

To help trade breakouts like these, you can utilize the EMA CROSS / STOCHASTIC CROSS /
VOLUME.
Here is an example of EMA CROSSOVER + STOCHASTIC CROSSOVER at OPEN can help
you trade the OPENING VOLATILITY.

You want to execute AT THE BREAK of RESISTANCE,

AFTER the Crossover but MAKE SURE the STOCHASTIC comes first.

Why does the Stochastics have to come first?

It doesn’t HAVE to, but it’s better when it does.

Why?
Because when the stochastics cross.. it signifies a SHIFT in Momentum.

When the momentum has been bearish and it crosses up, you get a SHIFT in momentum.

Momentum shifts indicate a potentially strong BUYING pressure coming in.

In this case, the LONG BOTTOM WICK that formed on the green candle at the resistance also
indicates buying pressure coming in.
Here is another example of how you can utilize the Stochastic Cross + the EMA Crossover.

In this example,
You want to MAKE SURE you have an ESTABLISHED resistance that has happened on the
SAME TIME FRAME.

HARD SUPPORT #1 becomes your ENTRY.

HARD RESISTANCE #1 becomes your PROFIT TARGET #1
HARD RESISTANCE #3(typo) becomes your PROFIT TARGET #2.

Notice how on ALL OF THE EXAMPLES I’m showing you,

Spotting False Breakouts.

ONCE a BREAKOUT happens, you have a 2-10 minute window for a false breakout signal.

In this case we are going to use the STOCHASTIC cross DOWN as one of the signals for a
false signal.

The first signal of a false breakout are the PRICE action of the candles itself.

You can see as the price breaks out, the first BREAKOUT candle shows a lot of selling pressure
shown by the 2 LONG wicks it’s formed on the top.

This is NOT A GOOD SIGN after a breakout.

The stochastic slow indicates a SHIFT in momentum so this should LET YOU KNOW that there
MAY be a potential SHIFT.
Look at the 2 resistance LEVELS.
These RESISTANCE levels are very close together.

When you have resistance levels that are this close together it becomes a ZONE.

Just like the very first example here.

Here we’re going to focus on the Squeeze.
The After Hour / Pre Market Squeeze.

You want to focus on the SQUEEZE only when it’s happening ALONG THE RESISTANCE
LINE.

You want to then use the STOCHASTICS to guide you on the shift in momentum.

You want to make sure this shift in momentum happens RIGHT BEFORE the market opens.

In this case, you can see that as the TTM is SQUEEZING

(Red dots on the bottom)
The Momentum SHIFTS upwards as the squeeze is released.

As the momentum shifts, the price is already at its breakout point.. therefore the breakout ended
up being HUGE.

This Guide was made to guide you on your journey as a trader.

It’s not for you to necessarily copy the strategies I have listed for you,
But for you to develop your own.
In this example, we are going to utilize the EMA lines as a means of Resistance / Support.

In this example you can see that the previous day was bearish.

After hours / Pre market formed a Support and turned into resistance all before market open.

The first candle we’re going to look at is the first 30min candle after previous days close.

This green candle with a long top wick was a full green candle until sellers came in and pushed
the price down causing the long wick.

This indicates selling pressure.

Now, during pre market, as the candle (red candle with arrow) retested the resistance (which
was support)
Sellers came back in and rejected the price.

Now why is this important?

Because this is all happening right before the open,
Where the most volume usually comes in.

You can see that the sentiment because BEARISH.

The rejection of the EMA + the RESISTANCE line indicates a potential sell off at open.

When do I enter in this occasion?

You want to enter at the opening rejection of either of the EMAS (9/21) or the break of the NEXT
support line.

At the end of the day, what matters is your execution without hesitation.
In this example we’re going to look at the Price action on AAL in 2 days.

First, we can spot the PRE MARKET resistance.

The price then formed a pre market high the next day

This pre market high will be used as an entry, and the previous day high will be used as your
PROFIT TARGET.

In this trade, you want to make sure the STOCHASTICS cross up RIGHT AT THE
RESISTANCE level.

In this last example we’re going to be looking at the previous days support.

The previous day’s support is used as an entry level.

In this example, if you got in at the breakout, the price would have retraced back up SLIGHTLY,
but notice how the SUPPORT held and the sellers MAINTAINED control at the support level.

In this case, the BEAR FLAG that formed was a perfect indication of a continued sell off
because it could not break the resistance line AT ALL!

ALWAYS USE SUPPLY & DEMAND to your ADVANTAGE.

Hope this guide helps you understand price action and understand how to Day Trade
effectively.

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