Options Wealth

Some weeks are better than others. I’ve had a few award me double-digit returns. However, it’s rare that I get close to a 1000% return on a trade.

This week happened to mark one of those moments. I executed a beautiful trade with Weekly Money Multiplier in AutoZone that came up just shy of a 10 bagger.

This is one of my biggest trades in 2020!

Let me tell you – it isn’t easy to find massive winners like this. But I have a few stocks on my radar that I think could provide some explosive profits in the coming week.

Spend some time with the family on Monday see you can get to your charts early on Tuesday morning and kick off this trading week.

Lamb & Weston Holdings (LW)

Maybe you are old enough to remember Saved By The Bell middle school episode where Zach and the gang lost a lot of money on potatoes. They were missing a TPS set up on a potato supplier like Lamb & Weston.

A friend of mine recently brought this chart to my attention, and I really love this setup. This fits a classic TPS strategy with a fantastic risk-reward.

LW 130-Minute Chart

Here’s what I see when I analyze this chart for my TPS strategy:

• Trend – I see a clear trend that is preceded by an explosive move higher in the stock off the back of its recent earnings.
• Pattern – The upper trendline connects the highs of the candles in a descending fashion. Underneath, the low points are connected in a slightly ascending trend. This creates a triangle consolidation pattern.
• Squeeze – At the bottom, there is a series of red and green dots. The red dots indicate a squeeze when the Bollinger Bands move inside the Keltner Channel indicator. This is where I want to enter. When it turns green, the energy from the consolidation is released.

Here’s what I especially like about this trade – normally I stop out when the squeeze releases and the pattern breaks.

Because price is so close to the lower trendline, the amount it could fall relative to a breakout above the pattern is tiny. That means it gives minimal downside risk with a lot of upside potential.

With implied volatility extremely low across the board, I’d look to play this trade with call options. Since I’m using the 130-minute chart, I’d go out about two weeks with the expiration period.

Twillio (TWLO)

This trade fits more with Jeff Bishop’s money pattern than my TPS setup. However, I think the chart is worth discussing for a trade idea this week.

Twilio ran higher for nine days straight before finally having one down day. However, that apparently was enough to stop this relentless uptrend dead in its tracks.

Here’s what I’m talking about on the daily chart.

TWLO Daily Chart

The previous lows from where the stock found support on its drop now act as resistance. Before that, the same level acted as support on the way up. So, when the stock ran into this level, it reversed.

Now, let’s break it down to the hourly timeframe.

TWLO Hourly Chart

I highlighted the recent moving average crossover in yellow. Jeff calls this the ‘money pattern’. It occurs when the 13-period simple moving average crosses over or under the 30-period moving average on the hourly chart. Here it crosses below, while at key support.

So, this setup tells me the stock wants to trade lower. However, I want to be cautious in such a bullish market. I can either play this trade with long put options or selling a call credit spread.

If this stock closes above the previous highs, then it’s broken resistance and the trade is over.

Kinder Morgan (KMI)

This chart isn’t the cleanest TPS setup, but it has some potential. KMI’s 130-minute chart looks pretty decent here.

KMI 130-Minute Chart

Typically, I want a larger move than we saw recently to create a trend. You can see how the first move led to a consolidation and a squeeze that fired higher into the current pattern. However, I do like that the current squeeze is preceded by a squeeze that worked out to the long side.

Now, the red bars at the bottom indicate the momentum has shifted to the downside. So, I’d probably wait on this one before stepping in. I want to see things consolidate longer and shift direction. That would give me confidence the uptrend isn’t over.

Learn how I developed my TPS strategy

I get a lot of questions about how I created my TPS strategy. It wasn’t something I discovered overnight. It actually took 8 years.

In the end, I turned $38,000 into over $2,000,000 in two years. You can learn about the steps I went through in my upcoming webinar. I explain how I went from an unprofitable trader to a RagingBull guru.

Click here to register.

Nathan Bear: I’d made $1.3 million total over the last 12 months using a simple Weekly Money Multiplier strategy over and over again.

How Nathan Bear made $1.3 million over the last 12 months?

And I noticed something strange…. I didn’t feel much about it.

I never thought I’d say something like that.

Because years ago I was a struggling small business owner, worrying every day how I was going to keep my growing family above water and make sure the bills were paid.

When I started trading with just $37,000 in my account I would never have DREAMED it would turn into a million.

And, let me tell you, the FIRST million I made was probably one of the most exciting periods of my life.

But here’s the thing — this is now my FOURTH million. It’s become standard…normal…repetitive.

I no longer get those butterflies in my stomach when I see my account grow another million.

It’s just “business as usual.”

— RECOMMENDED —

Introducing the brand new Weekly Money Multiplier… starring Nathan Bear

“I need to let you know I listened to your advice and focused only with Nate Bear setups and studied his material with my under 1K account. The month of November (2019) I was green $425 or 17% with 7 winners and 2 losers. This was my first green month this year.” ~ Dan

JOIN NOW

Is that what you WANT to happen?

But, that’s what you WANT to happen.

This is what a consistent, profitable trading strategy is SUPPOSED to do.

It’s supposed to take the emotion out of trading.

It’s supposed to make trading mechanical and repetitive.

The results are supposed to be so predictable and scalable that you look at another $1 million in your account and go, “Well yeah — I was expecting that.”

Lastly — it makes trading BORING.

You shouldn’t be scared, or pumped full of adrenaline, or experiencing swinging emotions of excitement and dread when you trade.

You should be pulling money out of the market like your laptop is your own personal never-ending ATM machine — and YAWNING all the way to the bank.

Would you like to learn the exact same strategy?

Would you like to learn the exact same strategy I’ve been using day after day, month after month, year after year to create millions of dollars in profit.

If so,  you can click here RIGHT NOW to get access to the special FREE presentation I’ve put together for you.  (I’m going to lay it all on the table).

But hurry, this free “tell all” training starts soon and isn’t going to stay online for much longer. 

What you DO with the money can make your life exciting — but the process of getting it SHOULDN’T be an emotional roller coaster ride. 

If you’ve tried trading and you’re finding yourself hitting all sorts of highs and lows and you’re wondering if you’re ever going to figure this whole thing out and ACTUALLY get profitable…

Then please — click here now to learn a PROVEN strategy for consistent returns.

Each day, buyers and sellers go to battle.

If you get on the wrong side of the fight – you’re destined to lose money.

That’s why I make it a daily practice to study tick charts.

Not only does it show me where the buyers and sellers are…

But it also gives me a real-time picture of market health – an essential tool for day traders.

In fact, I applied it the other day for a quick scalp in the Russell.

I leveraged the Tick chart to time my entry and maximize my gains

However, to the naked eye, the tick chart can look like an abstract painting.

If you don’t know its nuances then you won’t be able to maximize its power.

That’s why I’ve outlined my best practices for implementing tick charts – which I’m going to share with you today.

Tick Chart Basics

Most people aren’t too familiar with this measure, so let me explain. The Tick chart tells me whether there is buying or selling at the New York Stock Exchange (NYSE).

There are approximately 2,800 stocks that trade on the NYSE. The Tick chart gives each stock an uptick, downtick, or nothing based on the last trade. When a stock trades higher than the previous order, it’s called an uptick. If the stock trades lower than the previous order, it’s called a downtick.

When you go to look up the Tick chart, you’ll generally find it under the symbol TICK. Depending on your platform, this may require a ‘/’ beforehand or a ‘$.’ You will need to discuss with your individual broker to determine the ones they use.

As I mentioned previously, the Tick chart measures upticks vs. downticks. When a stock trades at the same price as the last trade, it gets nothing. That’s why the chart rarely has a lot of extremes.

Now, for obvious reasons, the Tick chart is bound by the total number of stocks on the exchange. Combine that with normal stock flows, and you find that the Tick chart is mean-reverting. That means it always tends to come back to the center from extremes.

You can see what I mean in the chart below.

TICK Daily Chart

The highest the Tick chart ever got was 1667, and the lowest -1556. If you did an average, it would land somewhere near the middle. That’s why I use the chart to gauge market health on a relative basis.

Important Lines In The Chart

There are a few levels that I want you to take note of +/-600, +/-800, and +/-1000. These create the normal extreme levels for the Tick chart that you want to look at.

Now, here’s the trick to using them – you want to move in the opposite direction of the extremes. So, if the Tick chart hits -800, you want to go long equities. If it hits plus 800, you want to be short.

You’re probably thinking – why would I want to do the opposite?

Well, when you break it down to intraday time frames like the 5-minute through 15-minute charts, you’re looking to trade with the flows. So, when it hits extremes, it tends to move in the other direction. Ideally, you want to see it hit -800, reverse, and head higher. This corresponds typically with a bullish move in equities.

Here’s what it might look like intraday on a 5-minute chart.

TICK vs. SPY 5-Minute Chart

The TICK is the more transparent set of lines on the chart. First, you’ll notice the rectangle outline that shows the SPY candle making a massive dip. At the same time, the Tick chart dipped all the way down to -1,000. That’s a signal that it’s at least reversing for a quick scalp.

Next, you see how the Tick chart started hitting the -1,000 level again as the SPY began to bottom. When the Tick chart rallied, it went all the way back up to +600, which was coincidentally the top in this move.

You can test this out yourself. It’s really fascinating to see how it plays out time and again.

Understand Context

The Tick chart itself won’t make you a better trader. It must be used in conjunction with your typical strategy. All it does is improve your accuracy of entry timing. If you try to use it without your bread-and-butter setup, you’ll quickly drain your account.

Most importantly, you need a strategy that works with intraday trading. The Tick chart won’t do much for you for swing trades. It mainly works for short-term timeframes intraday… generally between 5-15 minutes. Once you go out further, it tells you something entirely different.

It took me several years to discover how to create my TPS strategy and incorporate these measures. You can learn all about it in my upcoming free webinar. I explain how I spent 8 years learning to trade, finally turning my $38,000 account into over $2,000,000 in the last two years.

Click here to register.

Source: Weeklymoneymultiplier.com | Original Link