How to Trade Stock Market All-Time Highs 10-29-19

Essentially we stalk price and volume over a 2-6 day period. The goal is to identify when institutions are active, and when they step aside. It’s not dependent on the longer term bias, it’s pure tape reading over that short window.

As the market alternates between buying and selling pressure, our objective is to enter as this pressure “saturates” in a value area to buy, and “saturates” in a profit taking area to sell or sell short.

The entire strategy revolves around three pieces of information:

1: Institutional activity, the order flow. We’re looking for obvious well-bid or well-offered.

2: The opening push, off the opening price.

3: The price we plan to enter. We always know our entry price before the market opens. It’s an exact calculation off the recent price action, then we use 80% of that number to give us a little room to work the order.

When the market opens, we monitor three specific levels that determine today’s tape. Once the strategy is locked in, the trader will always know what expect. The most powerful aspect of the trade is anticipating the opening price action. We know exactly what to expect the first 90 minutes, and the correct levels to trade.

Each day we plan ten to fifteen trades. We only need two or three to unfold as planned, to make consistent money. Many amateur believe the opening hour is confusing, and too volatile to interpret. The Saturation Play gives our traders confidence on the open, because when the “expected” happens, they literally planned for it.

They are taught to let everything else go. It’s really a thing of beauty when you learn to read the swing. “What happens if a lot of trades trigger at once?” Sweaty asked. They are trained to flawlessly take every trade. Our traders understand the system makes money over time, so you can’t cherry-pick the winners.

Trading doesn’t work if you only take some of the signals.. Once a trader gets used to the Game Plan, it’s actually easier to manage five positions than one.

You aren’t watching every up-tick or down-tick. You manage the aggregate of the positions. The only way a traders gets in trouble, is if he doesn’t exit the losers.

Pete