Fibonacci levels have been around the market for decades and have forever been one of the hottest and strongest tools to use to capture big moves and spot key levels.

In this post, we’ll walk through how you can use the Auto FIB Indicator for SPY trading, maximizing your profit potential during the trading day.

This is an indicator that was created by our lead options trader Levi, and is responsible for some huge trades inside of our Options Trading Chatroom (Get a 7-Day REE Trial Here)

Now – let’s dive right into what this indicator is, and how to use it to trade big names and indices like $SPY.

Understanding the Auto FIB Indicator:

The Auto Fibonacci (FIB) Indicator automatically plots your intraday low and high, producing a Fibonacci zone that guides your entry and exit points. For example, if you’re trading SPY or QQQ, this indicator helps you identify key levels for price action by calculating retracements and extensions.

Why Use the Auto FIB Indicator?:

By using the Auto Fibonacci Indicator, traders get a clear visualization of where price reactions are likely to occur. These reactions are often at Fibonacci levels, making it easier for traders to plan and execute trades in real-time. This is especially useful when combined with other technical indicators.

How to Trade Using the Auto FIB:

• When the intraday low and high are established, the Fibonacci zones become areas of interest.
• For instance, today’s SPY intraday low was plotted right at the open, and the Fibonacci zone between 56.87 and 57.1 became a prime target for traders to execute long positions.
• If you are an options trader, this method provides a 20-minute preparation window to select strike prices and expiration dates, adding a structured approach to options trading.

Stacked Technical Levels for Higher Accuracy:

What makes the Auto Fibonacci Indicator even more powerful is its ability to overlap with other key levels, such as the previous day’s highs or lows. In today’s SPY setup, not only did we have a Fibonacci level, but the previous day’s high overlapped, giving traders a higher probability of success at that price point.

How to Integrate with Other Tools:

The Auto Fibonacci Indicator can be combined with other technical strategies, such as the Zone Indicator Overlap, which plots additional support and resistance zones. This added confluence of levels makes it even easier to anticipate significant price movements.

Conclusion:

The Auto Fibonacci Indicator is a powerful addition to your trading toolbox. Whether you’re trading SPY or any other stock, having this level of precision can increase your profitability, especially when combined with other technical indicators. If you haven’t already, give it a try, and see how it can improve your trading results.

You can get these indicators with Purchase of our Options Bootcamp come check it out!!

The post A Guide To Using The #1 Fibonacci Indicator In The Market: The “Auto Fib Indicator” Breakdown appeared first on Bulls on Wall Street.

The post Trade Alert: IBUY appeared first on Bulls on Wall Street.

$MDCO, XLNX Shorts

MDCO is not my typical short-selling setup. Usually I go for earnings breakdown plays, but MDCO was a first red day setup. It had a multi-day runup the last few days before I traded it, and my thesis was that it would have a quick pullback. Countertrend setups like these are NOT ones you want to marry. Nail and bail.

XLNX had a weak daily, and my thesis was that it would continue to roll over once it broke under the psychological $100 level. It didn’t end up following through so I took a small loss.

$SJM Short, $BITA Scratch

SJM reported an earnings miss and was gapping down during pre-market. It gave a great ORB set up at the open to get great risk vs reward, and I covered pieces out into weakness.

BITA was showing nice signs of a bottoming formation on its daily, just mistimed my entry bit and took a tiny loss when it didn’t end up following through on it’s a pullback to its intraday the MA’s.

$OLLI and $ENPH Nails 

You’re probably starting to see a pattern with my weekly trade recaps. Almost every day I’m trading earnings breakdown plays. OLLI is just the same thing different day. it didn’t follow through much but still gave me a small win.

Was stalking ENPH for a short for a while. After it rejected the $35 level on the daily chart the prior day, I figured that someone was trying to unload, and it had room to fall! We already started to fade off the day before, and my thesis was that we would have a day 2 of selling. Once it took out its opening range at $33, it was pure panic. Unfortunately, I missed the initial breakdown and settled for shorting into the first bounce.

$ULTA Short, $AOBC, $AMBA Scratches

$ULTA is another earnings breakdown short. It gave a textbook ORB (opening range breakdown) to make it high probability play right near at the open, which really brought some selling into the name. The earnings weren’t actually that bad on this name, and it was gapping down big pre-market. Once we took out the opening range at $250, my thesis was that it would continue to flush, so I got short and covered into the drop.

AMBA was an earnings winners, with a nice breakout gap over $52. I got long at the flag break near the open, and didn’t get any follow-through, and took a small loss. For some reason, I’m much better on the earnings shorts!

Biggest Lessons From the Week

1. If stock’s don’t confirm as you enter right at the open, get out. You can always get back in once the trend forms

2. Be patient with your winning trades, impatient with your losing ones. Many losing traders have this backward.

3. Know your A+ setups, trade big size on them, and stay small size on non-niche plays

4. The reaction to earnings reports is what matters, not the actual earnings themselves

Click here to learn more about our day trading chatroom. 

Click here to learn more about our swing trading chatroom. 

The post BOWS Day Trading Recap 8/26-8/30 appeared first on Bulls on Wall Street.

$DOYU, $VFF Nails, $GGAL Mistime

$DOYU

DOYU was one of my favorite reversal patterns: the exhaustion gap reversal. It is one of the most explosive reversal patterns out there (here we recently wrote a blog how to trade this pattern in more detail). At the open once it had the failed push in premarket and broke under premarket support, I knew that this piggy was ready to flush. My first target was yesterday’s high of day (will often act as support on these setups), and took off the rest in a flush under $10.

$VFF

Similar setup to DOYU, although not quite as A+ since it had a red day right before it gapped up. It still had a big run up, and had plenty of room to fall once it was gapping up on Tuesday. Similar intraday setup to DOYU as well, with the failed premarket push, and flush at the open.

$GGAL

GGAL had a big gap down on earnings the day before, and my thought was that it would have day 2 momentum to the downside. The intraday setup didn’t end up following through and took the small loss.

Pot Stock Shorts, $OSTK Bounce, $TVIX Loss

$CGC, $CRON, $TLRY

On Thursday a lot of pot stocks were getting hammered as CGC came up with a poor quarterly earnings report. The first shot I had at it in the morning was basically breakeven, as it was showing signs of holding up. I thought $TLRY would crack also, and ended up covering for a small loss. Once $CGC ended up rejecting again, I got short, and this caught the flush. I covered into weakness, and reshorted the turd and added to the winner. Took a small win on CRON, thinking it might roll over in sympathy to CGC.

$OSTK Long

The day before OSTK had a big down day, and I thought on Thursday it could be due for a quick bounce, as this one tends to be a big squeezer and is loaded with shorts. I got long anticipating the ORB, and scaled out into strength. I relonged it on a pullback in the $18’s and scaled-out quickly into strength again.

$TVIX Scratch

Thought the market was going to roll over after it broke under low of day, so I got long TVIX anticipating the spike in reaction to market weakness. It ended up holding up, and I took the loss on it. Luckily it barely made a dent in my PNL from my other winners. Shows the power of risk management, and adding to your winners, like I did with OSTK.

$OSTK Nail

One of my best trades this week. OSTK had a big rally the day prior, where I was actually long. It still had cracked major support on its daily recently under $20, so my thought process was that if it opened up slightly green, people would be slamming the bid on this piggy. Once we got the rejection of the round number $19 at the open, my thesis was that we would get a green to red move. I covered into the flush in pieces. I ended up longing it later for the red to green actually (see the execution chart at the top of the page)!

Free Chat Day 8/19: Watch Me Day Trade Live

Next Monday, August 19th, we are doing a free chat day with our day trading chatroom. During the free chat day, you get to watch me day trade live on screen share. Watch all the day trading setups, see all the trades I take in real-time, and see all the scans, charting layouts, and other gimmicks of my trading style!

Click Here to Sign Up For Our Free Chat Day

The post Weekly Trade Recap 8/12-8/16 appeared first on Bulls on Wall Street.

$CRWD, $ALLK, $SOXL Papercut, $OSTK Scratch

$CRWD

On Monday, the overall market had just had a big pullback, and I knew it was not the environment to marry a long trade that had no unique catalyst. CRWD was a name I was watching for a quick red to green play. Once it started to push green, I quickly scaled out into strength.  I decided to trade CRWD cause of its large range and was a nice spot on its daily chart for a quick bounce.

$ALLK

ALLK was gapping up huge in response to positive Phase 2 drug results. In hindsight, I sold way to early, but it was gapping up huge, and it’s hard to expect it to go on a run like that after being up so much on the day. I wasn’t worried about the overall market affecting this trade because it had a strong fundamental catalyst. I scaled out into strength after getting long at the opening range breakout at the open. I scaled out quickly and kept a tight leash on my shares since it was up a lot on the day.

$SOXL Scratch

The SOXL trade was with the expectation that the market would bounce. The market ended up continuing to fade, so I cut it for a small loss.

$NEWR, $MTCH Botched Trades, $ALLK

$NEWR 

This was a big fuck-up on my part. Not going to BS you guys and pretend its all winners and rainbows. I got in too early, and failed to get back in after it did finally setup and flush. Tough lesson about the importance of timing, and having the conviction and mental capital to reenter even after you get stopped out.

$ALLK

Another trade I didn’t handle correctly. Sold half way too early. It was partially due to the fact I had a losing trade on $NEWR, and I was afraid ALLK would reverse on me. So when I had a bit of green I took it, and wasn’t patient enough. I then relonged it too high because I got FOMO, and took a small loss.

$MTCH

Another big miss from me. Missed the move to $95 and stopped out prematurely, after getting decent entry. I should’ve been more patient with this one, and kept a wider stop. A $1 stop loss was too tight consider it already had $6 range on the day.

$WMGI $KHC $ROKU

This day made up for my sub-par performance the day before. Some of you guys may who were in my free chat day saw most of these trades, so I’ll break down my thought process on some of them for you guys to learn from:

$WMGI

WMGI was an earnings breakdown play: My go-to setup. It was gaping down on worse than expected earnings, and my thesis was that it would continue to fade off at the market open. I hit it on the opening range breakdown after it broke under the low of the first 5-minute candle. I scaled out into flushes, taking profits as it continued to drift lower.

$KHC

KHC was a similar play to WMGI, expect that the context was that it was a day 2 earnings breakdown play. This was more of a scalp short, since it had shown signs of strength yesterday, I didn’t want to overstay in case it started to squeeze. In hindsight, I covered too early, as it ended up drifting lower later in the day.

$ROKU

ROKU was an earnings breakout play that was gapping up in response to a positive quarterly earnings reports. There were no areas of major resistance nearby, so my thesis was that it would have a strong uptrend for the day.

Other Trades

This $LYFT trade taken by one of our moderator’s Nick was not a particularly big winner. But there are some good lessons from the trade. It was an interesting setup because $LYFT was actually gapping up in response to better than expected to earnings.  Despite the good earnings, it rolled over big time. He got short after the $63.30s support level broke and then covered in the $61s, with support at $61.50, yesterday’s high of day.

This is a great example of how price action is king, and you cannot let news and fundamentals make you overly biased. When the consensus is bullish and you get bearish price action, it will often lead to some of the biggest market moves. When the crowd is wrong, everyone is panicking and looking for an exit.

Summary: Biggest Lessons from the Week

1. Price action is always king
2. Don’t be afraid to get back in after getting stopped out IF there’s a setup
3. Pay attention to a stock’s range, and set stop losses accordingly to avoid premature stop-outs
4. Wait for the bottom to pick itself, don’t try to catch a falling knife (with the overall market bounce this week)

Click here to learn more about our day trading chatroom. 

Click here to learn more about our swing trading chatroom. 

The post Weekly Trading Recap 8/5-8/9 appeared first on Bulls on Wall Street.

$RL, GRUB and $CRWD Trades 7/30

$GRUB

GrubHub was gapping down on worse than expected earnings on Monday. It’s daily and worse than expected earnings gave me a short bias at the open. It also gave a push right at the open back into it’s moving averages. My thesis is that it would act as resistance, and it would fade back to LOD and below.

I started in short at $at 74.62 and $74.52, and scaled out into weakness after it broke under LOD!  (If you’re confused about the timestamps I live in Destin, Florida which is 1 hour behind EST, the $RL trade was taken right at the market open!)

$RL

Ralph Lauren was actually gapping up in response to their earnings report. Because it’s a retail stock, I was actually short biased on the gap and was expecting it to fade off. It was already fading off pre-market, so my plan was to short it for the green to red move and cover my position into the flushes.

$CRWD

This was a non-earnings play, but still gave a stick rip. The day before it had seen a monster 10 point dump. So my thought process was that it would bounce, so I hit it on the R/G (Red to green) move and scaled out into strength. I didn’t expect it bounce all the way back through $90 I left a bit on the table!

$LK and $JNUG Plays 8/1

All these trades were taken in the afternoon right after the tariff news dropped causing the overall market (SPY, Dow Jones) to crater.

$LK

This was on my radar after it had that huge dump in response to the weakness in the overall market. Once it had the big 1.5 point to $24 I got short into the bounce at $25, anticipating the green to red move. I covered partials into weakness, as it flushed red with the overall market.

$JNUG

$JNUG started to see major range and volatility once the overall market started to dump. I got long, joining the uptrend it had begun ever since weakness came into the overall market. I scaled out into strength, treating at as a short term trend, not expecting to hold trend for long.

$SYMK $PINS (Long and Short!) 8/2

$SVMK

This was a nice earnings winner, gapping up right near to all-time highs today. I got long at the open for the opening range breakout under $19. It had no resistance until $20, and it was one of my top watches at the open for strong trender today.

$PINS

Another name gapping up in response to a strong earnings report. This one was a tricky one because of the weakness in the overall market. I was long near the open, but cut it near breakeven because I thought it wouldn’t hold up. It ended up holding up and going up on a strong run all the way to $35.

It looked like it finally topped out (I missed the turn cause I was eating lunch I chased a bit) and I took some short. It ended up grinding and basing, so I flipped long and ended up stopping out the other half my shares breakeven.

Some of Our Students Trades

$TVIX

If you have any questions about any of the trades do not hesitate to shoot me a message!

Free Chat Day 8/8: Watch Me Day Trade Live

This Thursday, August 8th, we are doing a free chat day with our day trading chatroom. During the free chat day, you get to watch me day trade live on screen share. Watch all the day trading setups, see all the trades I take in real-time, and see all the scans, charting layouts, and other gimmicks of my trading style!

Click Here to Sign Up For Our Free Chat Day

The post Weekly Trading Chatroom Recap 7/28-8/2 appeared first on Bulls on Wall Street.

TSLA, TAL, and ALGN were all similar setups: Earnings breakdown short plays. All 3 had gapped down in response to negative earnings reports, and all 3 of them gave setups at the open for entries. TAL and ALGN offered great ORB (opening range breakdowns) setups at the open to offer, low-risk high reward entries. On TSLA my trigger was the break of pre-market market lows. My exit strategy on all of them was to scale out and cover on dips.

OSTK was a tough trader this week, and I ended up taking a few small losses on it. It’s always a choppy one, it never trends clean from breakouts or breakdowns. If you’re new, I’d recommend avoiding trading it altogether. Here is an video breakdown my trading week and my trades in more detail:

You can learn more about my trading thought process and execution in our free chat day next week where you can watch me trade live.

Some of Paul’s Trades

Paul had a ton of great trades throughout the week. Had great timing with NFLX on the earnings gap down reversal. A nice exit in SOXL, and some great entries in ZM and FAS. He had a scratch trade-in BRZU as well, which didn’t end up having any follow-through. Here is a trade recap of Paul’s NFLX trade-in cased you missed it. A lot of momo names offering great swing opportunities this month, and we have been capitalizing!

Free Chat Day 7/29: Watch Me Day Trade Live

Next Monday, July 29th, we are doing a free chat day with our day trading chatroom. During the free chat day, you get to watch me day trade live on screen share. Watch all the day trading setups, see all the trades I take in real-time, and see all the scans, charting layouts, and other gimmicks of my trading style!

Click Here to Sign Up For Our Free Chat Day

The post BOWS Weekly Trading Recap 7/21-7/26 appeared first on Bulls on Wall Street.

$JNUG: Nailing it Long and Short 

Gold recently had a major, multi-year breakout over the $1370 resistance level.  Gold miner ETF’s like JNUG have started to find high relative volume and range, making them amazing vehicles for day trading. JNUG is a 3x leveraged gold miner’s ETF, and it is one of my favorite instruments to day trade when Gold starts to trend and find momentum. 

It is a leveraged ETF, so it is great for day trading, but not what you want to swing trade or invest in long-term. Yesterday I hit JNUG long and then flipped short during the market open: 

Let’s take a look at its intraday chart and I’ll breakdown my thought process and trading plan:

JNUG yesterday was gapping down from its prior close. This is the ideal scenario for a R/G (red to green) setup. JNUG had a strong day on Thursday and went up about 20%. It had demonstrated that there were momentum and trend in the name. At the open once it tested its VWAP (Volume Weighted Price Average) and held I got long at $83.50, with tight risk under LOD (low of day). I scaled out into strength (took most of it off too soon in hindsight!) in the $84-$86 range. 

Recognizing the Fizzle Potential

 But after such a big move the day before, it needs to have a pullback to offer a high probability long trade. The gap down was the pullback that was needed, and what gave me conviction for the long bias at the open. But you can also see by its daily that it had two big up days prior. It would be hard to expect a long to follow through much beyond yesterday’s HOD (high of day).   

Once it started to reject yesterday’s HOD and fail to hold over the level,  it was signaling to me that it was about to pullback. Once it cracked VWAP and could barely find a bounce, I knew that the backside was in. I got short when it pulled back to retest VWAP and scaled out into the next flushes. 

$CRWD Trade Recap

CRWD was gapping up big in response to a strong earnings report. It was at all-time highs, so my bias was to the long side, especially since it was a recent IPO with a strong uptrend. Here is a look at its intraday chart:

My thought process was that the selloff at the open would get bought up eventually. Sell-offs at the open are actually a good thing sometimes when you are looking to long something, as it offers you better risk vs reward entries, and an opportunity to get in at lower prices.

I got long at $82.74 once it started to settle a bit and work out the sellers. My plan was to scale out into strength. I took out 1/3 at $84.70, and my plan was to hold the rest for a pushover HOD. We were never able to get enough momentum to break HOD, so I took off the rest of my shares once it broke back under VWAP. This will be on the top of my watch list next week for more momentum to the long side.

Summary: Biggest Take-Aways

1. Have a Nimble Bias: Price Action is King
2. Mark Out Key Levels on the Daily BEFORE Taking the Trade (Knowing where JNUG’s HOD is, and understanding the potential for it to act as resistance)
3. Have a Trading Plan and STICK to It: Entry, Stop, $ Risk, First Target, Exit Strategy

Click here to learn more about our new day trading chatroom. 

Get Started With Our Free Trading Kit

Our trading kit is the best free resource out there for new and struggling traders. It includes

• Intro to Trading Course
• Comprehensive Trading Handbook
• Trading Consultation

Download your free trading kit here.

The post BOWS Day Trading Recap 7/19: $JNUG and $CRWD Analysis appeared first on Bulls on Wall Street.

For those that don’t know me, I am one of Kunal’s students, and I help moderate the BOWS day trading chatroom. Primarily a day trader that focuses on trading momentum stocks, mainly to the long side.

The key for day trading small stocks correctly is to use a proven, back-tested system, and have sound risk management. Today I’ll walk you through my thought process behind my $GHSI trade this morning, and how I approached it:

$GHSI Daily Chart 

$GHSI is a recent IPO with a downtrending daily. I always approach small caps stocks a trading vehicle, not something for a long term investment.  Right is a market environment where we are seeing a lot of junk small-cap companies are taking off and following through to the longside. $CAPR, $IMRN, $MDGS just to name a few from the last couple weeks. 

This company was gapping up on news that it was awarded a patent from the Hong Kong Patents Registry. It actually wasn’t even on my watch list until it popped up on my scanner after its initial push through $2 at 9:40 am.

Trade Executions

Hindsight comments about what a stock did and why is pointless. The only thing that matters is if/where you bought, and where you sold. $GHSI had room to run on its daily to the mid $2’s, there was strong relative volume, a catalyst, and a low volume pullback to its intraday moving averages before the move had really gotten extreme.

I got long at $1.76 once it started to hold the pullback to the 9 EMA, with risk under the 20 EMA (the green moving average) at $1.64. My plan was to take half of my position off on pop through $2, and take off the rest near the daily resistance in the $2.20’s. I was able to only risk about $.12, and made about .49. 1:4 risk vs reward.

Did not sell the exact top of the move, but no one really ever knows how high these things will go. The best way to play these is to scale out into strength. Often these small caps will have bigs drops after such a big move upwards.  My first target was a pop through $2, as whole numbers can often act as resistance with stocks. The stock than had a volatility halt for 5 minutes (see here for a description of what these are), and then a sold the rest on pop into the $2.30’s, near the daily resistance levels.

Day Trading Tips and Lessons from The Trade

1. Use Moving Averages to Control Risk

Moving averages are great indicators for basing your risk on for day trades. It also shows you when a stock is getting extended and needs to pull back and consolidate before continuing trend. Once stocks pull into their MA’s, you can get low-risk entries with great risk vs reward. When playing moving average pullbacks, make sure to wait for some confirmation that the stock is HOLDING the moving average. Many traders make the mistake of buying the stock as soon as it gets close to the moving average, and it dumps right through it.

2. Scale-out into Strength

Small-cap stocks are volatile, and they don’t go straight up or down. A great way to take some profits, but still leave yourself in a position to capitalize on a bigger move is a trick called scaling. I talked about it above, but what scaling is selling a portion of your position when you have a profit. In my trade, I sold 3/5 of my position on the pop through $2, and then sold the other 2/5 in the $2.

3. Don’t Marry the Stock

99.9999% of penny stocks are a piece of shit company. Investing in penny stocks is basically just giving away your money to short-sellers. But there are plenty of short-term trading opportunities to capitalize on. Many novice traders make the mistake of holding onto a penny stock with the hope it turns out to be the next Amazon. It won’t be. By the dip, sell the rip, and move on.

4. Have a Trading Plan

Small-cap stocks with this much volume and trend move FAST. You have to pre-plan your trade before you take it. I guarantee that if you trade this without a plan you will either panic out on the first dip, or you will freeze and not cut the loss where you are supposed to.

Click here to learn more about our new day trading chatroom. 

Get Started With Our Free Trading Kit

Our trading kit is the best free resource out there for new and struggling traders. It includes

• Intro to Trading Course
• Comprehensive Trading Handbook
• Trading Consultation

Download your free trading kit here.

The post $GHSI Trade Recap 7/27/19 appeared first on Bulls on Wall Street.

The Remount Setup

One of these high probability patterns is playing out right now in Apple.

Let’s take a look at how Apple has reacted recently to both it’s 50 and 200 day moving averages by studying this chart:

The red line is the 50 day moving average and the blue line is the 200 day moving average. Notice the green arrows on the chart. Each time Apple has “violated” this levels by price breaking below the moving average, and eventually “remounted” or closed above those levels, it lead to a quick retest of highs.

Each of these entires lead to a winning trade low risk and high reward trade if you entered on the remount of the moving average.

Apple Entry Plan

Apple might be setting up for another remount entry. Here’s the video analysis of the setup plan. Notice the focus on precise entry points and risk analysis.

Two days ago the stock closed below the 200 day moving average and is now getting close to remounting that level. A close above $193.75 triggers a remount. This entry offers great Reward on Risk because we can set a stop below today’s low at $188 and set a reward target at $215, which is near the 50 day moving a average.

We are risking 6 dollars to make 19 dollars, which amounts to 3:1 reward to risk. So in other words, if you buy 100 shares of Apple you are risking $600 to make $1900.

That’s a money setup!

Swing Trade Service

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

The post Apple and the Remount Trade (Detailed Breakdown of the Money Setup!) appeared first on Bulls on Wall Street.