August 27

What I saw. The trade I took. How I would like to act.

What I Saw:

10m SPX held the bullish ribbon and 21e.

10m SPY put in a bullish engulfing tweezer bottom.

3m SPX bullish 21e and Scalp Put Trigger held

3m SPY bullish engulfing tweezer, eating into ribbon, ivom potential

Trade I took:

6470 Calls

Stopped out at ideal entry

Mental Steps I Wish I Took:

1. What has happened aka What I Saw from above

2. 1st 10m candle signaled bullish continuation

   1. So, first where is 10m candle support? Does it align with previous resistance?

   2. Zooming into the 3m, where is the last swing low?

3. Strike Selection

   1. What is next level up?

   2. Is premium squeezing and potentially putting in an ivom?

      1. Where is support?!

4. This level becomes the invalidation point and stop loss.

   1. How far am I from this point? If I'm unwilling to wait for a retest, how much am I willing to drawdown so as to not stop out if we do retest?

   2. Ideally wait and potentially add if a retest holds.

5. Where is current resistance? Exit majority. Stack small wins.

   1. If resistance breaks and closes, hold runners until next level up.

I entered in small enough size that if I had slowly established where the thesis was actually invalidated, rather than stopping out, I could've held and even added. PDC held and the Call Trigger was hit, returning 100% on my original entry.

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6 Pane Process

1. Hourly Bias

2. 10m PA - What has happened? What just happened? Last 10m S/R

3. 10m Swing Pivots SPY and SPX

4. 10m Setup? If up where has support been? If down where has resistance been?

5. Strike Selection = next day level

   1. Where is premium support?

   2. Is there a squeeze? Is there divergence?

6. 3m PIVOTS for Entry / Stop Loss //

7. Manage in terms of stop loss

Today's Trade

1. Hourly Bias very bullish

2. Ribbon has held as support. Dips down to previous resistance to support getting bought

3. Swing Highs near call trigger. Swing Lows near PDC.

4. Morning Star reversal on the 10m | W with divergence on the 3m

5. 6470c (should've bought 6475 or 85)

   1. Premium Support at 5.2, entry at 6.2, 200/con stop

6. PDH, previous 3m swing low.

   1. Drawdown to 5 exits at 7+, next level up contracts hit 10

7. Never a reason to exit given stop level was not reached

So 40% of the drawdown. 20% off my shitty entry. And, 100% if held to the next level.

I'll take 20% all day

Bullish Hourly

Deep dips to 10m bought

No actual setup, just a hold of the 10m13e

But there was a PO dot, so more likely to expect a mean reversion!

Meaning extra patience for the buyable dip.

Which on the 10m the actual setup came!

It comes down to patience. Which requires 'missing' moves in favor of waiting for an obvious 10m setup. Explain the setup on the 10m to an amateur. If you can't articulate it, there's no edge. Also, patience while in the trade. It played out! Even with the poor entry, 20% return if held.

Still a green day given the position sizing! Green is green.