How to Spot High Probability, Stress Free Day Trading Setups!
I just wanted to do a quick step-by-step review of a quick and "stress-free" trade I made in $SOXS today (10-27-2022) for a +$2000 gain in just under 1 hour!
I hope this guide can serve two important educational purposes. The first being a top quality example of a real world trade and the most important purposes is to give you the confidence to potentially take one of these trades on your own!
So, how did I spot this trade and how did I trade it?
Recently the market has been acting much stronger than what we've seen over the the past 2 months so today(10-27-2022) I started looking at bearish inverse ETFs that have pulled back significantly from recent highs. One of my favorite bearish inverse ETFs to watch is $SOXS!
I tweeted this to AoT members:
My thought process was after being down 9 out of the last 10 days the likelihood of at least a short term bounce higher was starting to become compelling from a risk standpoint!
Shortly after this tweet $SOXS started to attempt an intra-day bounce. You'll notice a higher low formed after making its first low around 11:30AM est. The opposite can been seen in $SMH (second chart), It made a series of lower highs and then broke down, to the downside!
After the higher low formed it didn't take long before $SOXS made a swift move to the upside! 5.5% in one hour backed by a large surge in volume!
Take note of the "First low" followed by the "Higher low" annotated in the chart! This is a key feature to spot in a setup like this! Your risk is defined either below the first low or for a tighter stop below the higher low!
So, how did I execute the trade on my end?
I bought 800 shares @ $56.74~ slightly after the "Higher low" formed on the 5min chart.
I sold 800 shares @ $59.27 slight after 1PM after it made its initial strong move higher!
This was good for a +$2000 gain in just under 1 hours time!
Keep in mind The Art of Trading focuses on multiday swing trade alerts and not day trading alerts, so although this isn't an "official alert" many experienced and long time members of the group take these types of setups for themselves and I try to point these setups out when I see them in the Art of Trading private feed!
Here are a couple of tweets from active trading members who took this idea for themselves:
This is what the Art of Trading is all about! Creating more confident, well rounded traders!
Cheers and happy trading!
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