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Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuant SM Everyday Profits

Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

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Page 1: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Identifying Key Support and Resistance Levels

presented by

Thomas Wood | MicroQuantSM

Everyday Profits

Page 2: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Submit All Questions Via GoToWebinar Side Menu

Page 3: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Risk Disclaimer Trading   or   inves-ng   carries   a   high   level   of   risk,   and   is   not   suitable   for   all  persons.   Before   deciding   to   trade   or   invest   you   should   carefully   consider  your   investment  objec-ves,   level  of  experience,  and  ability   to   tolerate   risk.  This  content  is  subject  to  change  at  any  -me  without  no-ce,  and  is  provided  for   the   sole   purpose   of   educa-on   and   assistance   in   making   independent  investment   decisions.   ValueCharts.com   has   taken   reasonable   measures   to  ensure   the   accuracy   of   the   informa-on   contained   herein;   however,  ValueCharts.com   does   not   guarantee   its   accuracy   and   is   not   liable   for   any  loss  or  damage  which  may  result  directly  or  indirectly  from  such  content  or  from  an  inability  to  access  such  informa-on  or  any  delay  in  or  failure  of  the  transmission   or   the   receipt   of   any   instruc-on   or   no-fica-on   in   connec-on  therewith.   Any   past   performance   results   are   shown   for   illustra-on   and  example  only,  are  hypothe-cal  and  as  such  have  many  inherent  limita-ons.  No  representa-on  is  being  made  that  any  account  will  or  is  likely  to  achieve  profits  or  losses  similar  to  those  shown.  Past  performance  is  not  necessarily  indica-ve  of  future  results.    

Page 4: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

CFTC Rule 4.41 (Hypothetical Disclaimer)

U.S.  Government  Required  Disclaimer   -­‐  Commodity  Futures  Trading  Commission  Futures  and  Op-ons  trading  has  large  poten-al  rewards,  but  also  large  poten-al  risk.  You  must  be  aware  of  the  risks  and  be  willing  to  accept  them  in  order  to   invest   in  the  futures  and  op-ons  markets.  Don't  trade  with  money  you  can't  afford  to  lose.  This  is  neither  a  solicita-on  nor  an  offer  to  Buy/Sell  futures,  stocks  or  op-ons  on   the   same.  No   representa-on   is  being  made   that  any  account  will   or   is   likely   to  achieve  profits  or  losses   similar   to   those   discussed   on   this   web   site.   The   past   performance   of   any   trading   system   or  methodology  is  not  necessarily  indica-ve  of  future  results.    CFTC  RULE  4.41  -­‐  HYPOTHETICAL  OR  SIMULATED  PERFORMANCE  RESULTS  HAVE  CERTAIN  LIMITATIONS.  UNLIKE   AN   ACTUAL   PERFORMANCE   RECORD,   SIMULATED   RESULTS   DO   NOT   REPRESENT   ACTUAL  TRADING.  ALSO,  SINCE  THE  TRADES  HAVE  NOT  BEEN  EXECUTED,  THE  RESULTS  MAY  HAVE  UNDER-­‐OR-­‐OVER   COMPENSATED   FOR   THE   IMPACT,   IF   ANY,   OF   CERTAIN  MARKET   FACTORS,   SUCH   AS   LACK   OF  LIQUIDITY.  SIMULATED  TRADING  PROGRAMS  IN  GENERAL  ARE  ALSO  SUBJECT  TO  THE  FACT  THAT  THEY  ARE   DESIGNED  WITH   THE   BENEFIT   OF   HINDSIGHT.   NO   REPRESENTATION   IS   BEING  MADE   THAT   ANY  ACCOUNT  WILL  OR  IS  LIKELY  TO  ACHIEVE  PROFIT  OR  LOSSES  SIMILAR  TO  THOSE  SHOWN.    NO  REPRESENTATION  IS  BEING  MADE  THAT  ANY  ACCOUNT  WILL,  OR  IS  LIKELY  TO  ACHIEVE  PROFITS  OR  LOSSES   SIMILAR   TO   THOSE   DISCUSSED   WITHIN   THIS   SITE,   SUPPORT   AND   TEXTS.   OUR   COURSE(S),  PRODUCTS  AND  SERVICES  SHOULD  BE  USED  AS  LEARNING  AIDS  ONLY  AND  SHOULD  NOT  BE  USED  TO  INVEST  REAL  MONEY.   IF   YOU  DECIDE   TO   INVEST  REAL  MONEY,  ALL   TRADING  DECISIONS   SHOULD  BE  YOUR  OWN.    

Page 5: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

About Me… Formal info

•  1995  Graduate  of  Vanderbilt  University  

•  Full  Broker  at  23  with  Merrill  Lynch  

•  12  Year  Senior  Advisor  Vanguard  Asset  Management  Service  

•  23  months  in  Stocks  &  Op-ons  Live  Trading  Room  

Page 6: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

About Me… Personal info

Page 7: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

•  Why  trade  Intra-­‐Day?      •  What  are  the  Benefits?  

•  The  Trading  Day  Time  Map  

Page 8: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

•  Follow  the  Indexes    •  S&P500  vs  NASDAQ100  vs  Russell  2000  

Page 9: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

•  Range-­‐Bound  vs  Trending  Days    •  *  The  OPENING  RANGE  *  

•  *  The  Mid-­‐Morning  Reversal  *  

Page 10: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

•  Trade  Setups  for  Reversals    •  Trade  Setups  for  Breakouts  

Page 11: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

•  Beware  the  Lunch-me  Doldrums  

•  *The  Aiernoon  Move*    

Page 12: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

•  Trading  into  the  Close  

•  Do  I  hold  Overnight?  

Page 13: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

–  Bonus  Stuff  –    

•  Trading  Account  Size  -­‐  A  straight-­‐forward  method  

•  Grow  into  Sustainable  Profits  

Page 14: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

–  Bonus  Stuff  –    

•  Trading  Account  Size  -­‐  A  straight-­‐forward  method  

•  Grow  into  Sustainable  Profits  

Page 15: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

–  Bonus  Stuff  –  

 Step  by  Step  Guide  to  

Trading  through  the  Day  

Page 16: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay Profits  

–  Bonus  Stuff  –  

 Next  Steps…  

Page 17: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Why  trade  Intra-­‐Day?  

Page 18: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Why  trade  Intra-­‐Day?    -­‐  Everyday  is  Different  

-­‐  Challenging  yet  Fun  to  Adapt  to  a  Changing  Market  Environment  

-­‐  You  get  to  experience  the  world/news  through  the  markets  

-­‐  Intra-­‐Day:  very  short  term  charts:  1,  2,  3,  5  min  or  -cks  

EveryDay Profits  

Page 19: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Benefits  of  Intra-­‐Day  Trading  

Page 20: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Why  Benefits  of  Intra-­‐Day  Trading  

-­‐  Everyday  is  Different  but  Similar…  

-­‐  Most  Trading  Days  follow  a  consistent  -me  script  -­‐  Morning,  Lunch,  Aiernoon  

-­‐  Most  Daily  Price  ac-on  in  Stocks  follows  the        flow  of  the  Indexes  

EveryDay Profits  

Page 21: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Why  Benefits  of  Intra-­‐Day  Trading  

-­‐  Know  your  Daily  Profits  –  trading  is  your  business  -­‐  Capital  &  Real  Estate  –  trading  computer,  data  feed  -­‐ Overhead  Expenses  –  trade  losses  -­‐  Employees  &  Skills  –  that’s  you    

-­‐  Walk  away  everyday  with  Money  in  your  Pockets!  

 

EveryDay Profits  

Page 22: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Why  Benefits  of  Intra-­‐Day  Trading  

-­‐  NO  OVERNIGHT  EXPOSURE  RISK  !!!  

-­‐  Overnight  Market  movements  are  an  inherent  risk  to  intra-­‐day  posi-ons  held  longer,  overnight  

 

EveryDay Profits  

Page 23: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

The  Trading  Day  Time  Map  

Page 24: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  The  Trading  Day  Time  Map    

-­‐  Morning  Session    :    PreMarket,  9:30  –  12noon  

-­‐  Lunch-me  Doldrums  :  12noon  –  2pm  

-­‐  Aiernoon  Session  :  2pm  –  3:45pm  

 

EveryDay Profits  

Page 25: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Follow  the  Indexes  

Page 26: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Follow  the  Indexes    

-­‐  Every  boat  captain  knows  it’s  easiest  to  put  to  sea  when  the  -de  is  flowing  out…  

-­‐  The  Indexes  and  their  price  movement  are  the  Market’s  Tides.  

-­‐  When  you  trade  Intra-­‐Day,  trade  in  the  same  direc-on  as  the  Index,  you  will  have  a  much  easier  flow  to  your  trade,  and  it  will  have  a  much  higher  chance  of  success  

EveryDay Profits  

Page 27: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Follow  the  Indexes    

-­‐ When  you  trade  Intra-­‐Day,  trade  in  the  same  direc-on  as  the  Index,    

-­‐ you  will  have  a  much  higher  probability  that  your  trade  will  be  profitable.    

EveryDay Profits  

Page 28: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

S&P500  vs  NASDAQ100  vs  Russell  2000  

Page 29: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  S&P500  vs  NASDAQ100  vs  Russell  2000    

-­‐  S&P  500  Index    -­‐  500  Largest  US  Companies  by  market  cap  -­‐  80%  of  total  US  Market  -­‐  “800  lb  Gorilla”  in  the  room  

 

EveryDay Profits  

Page 30: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  S&P500  vs  NASDAQ100  vs  Russell  2000    

-­‐  NASDAQ  100  Index    -­‐  100  of  the  top  “technology”  Growth  companies  -­‐ Market  cap  weighted,  Dominated  by  top  12  holdings  

 

EveryDay Profits  

Page 31: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  S&P500  vs  NASDAQ100  vs  Russell  2000    

-­‐  Russell  2000  Index    -­‐  2,500  Midcap  &  Small  cap  US  Companies  -­‐  Remaining    20%  of  total  US  Market  -­‐  Fast  movers  

-­‐  Russell  2000  either  leads  or  lags  the  ES  &  NQ  indexes    

 

EveryDay Profits  

Page 32: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  S&P500  vs  NASDAQ100  vs  Russell  2000    

-­‐  Rela-ve  Strength  -­‐  Most  of  the  -me  indexes  move  together  -­‐  But  if  we  compare    indexes  ES  and  NQ,  usually  one  will  be  rela-vely  stronger  or  weaker  than  the  other  

-­‐  If  the  ES  is  leading,  it  will  pull  NQ  with  it  by  shear  weight  -­‐  If  the  NQ  is  leading,  it  could  influence  ES  by  momentum    -­‐  In  a  fast  moving  market,  Russell  2000  tends  to  lead            both  ES  and  NQ  

 

EveryDay Profits  

Page 33: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Ru  

Range-­‐Bound  vs  Trending  Days  

Page 34: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Range-­‐Bound  vs  Trending  Days    

-­‐  Range-­‐Bound  Days    -­‐  Defini-on  :  days  which  prices  tend  to  move  between  an  established  high  (resistance)  and  an  established  low  (support)  

-­‐  Prices  also  get  pulled  back  to  the  middle  of  the  range  as  they  approach  the  high  or  low    

-­‐  These  are  seen  as  Consolida-on  Bars  on  the  daily  chart    

EveryDay Profits  

Page 35: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Range-­‐Bound  vs  Trending  Days    

-­‐  Range-­‐Bound  Days    -­‐ Opening  Range  high  &  low  have  a  big  influence  on  daily  range  

-­‐  Roughly  60-­‐65%  of  trading  days  are  Range-­‐Bound  -­‐  Reversal  Trades  that  respect  the  O.R.  high  &  low  are  successful  

EveryDay Profits  

Page 36: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Range-­‐Bound  vs  Trending  Days    

-­‐  Trending  Days    -­‐  Defini-on  :  days  which  prices  tend  to  move  in  a  trend,  easily  breaking  previous  day’s  highs  and  lows  with  momentum  

-­‐  Prices  then  to  “push  the  envelope”  of  Opening  Range  levels  in  the  direc-on  of  momentum  of  the  daily  charts  

-­‐  These  are  seen  as  Trending    Bars  on  the  daily  chart  

 

EveryDay Profits  

Page 37: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Range-­‐Bound  vs  Trending  Days    

-­‐  Trending  Days    -­‐  Opening  Range  high  &  low  levels  allow  us  to  see  the  strength  of  the  momentum  move  

-­‐  Roughly  35  -­‐  40%  of  trading  days  are  Trending  Days  -­‐  Usually  Trending  Days  generally  string  along  2  or  3  days  at  a  -me.  

-­‐  Breakout  &  Trend-­‐following  trades  work  well  

EveryDay Profits  

Page 38: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

*  The  OPENING  RANGE  *  

Page 39: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 40: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 41: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  Opening  Range  of  the  trading  day  -­‐  Defined  by  the  first  30  minutes  (9:30am  –  10am  Eastern)  

-­‐  Opening  Range  High    –  the  highest  price  the  index  traded  in  the  first  30  minutes  

-­‐  Opening  Range  Low    –  the  lowest  price  the  index  traded  in  the  first  30  minutes  

EveryDay Profits  

Page 42: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 43: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  Let  the  market  move  for  the  first  30  minutes  to  establish  the  Opening  Range  (O.R.)  

-­‐  Aier  the  first  30  minutes,  draw  the  High  &  Low  O.R.  Price  Levels  on  your  Charts  and  extend  out  for  the  rest  of  the  day  

-­‐  Opening  Range  High  &  Low    –  should  be  considered  significant  intraday  support  and  resistance  levels  for  the  rest  of  the  day  

EveryDay Profits  

Page 44: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 45: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 46: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 47: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  Also,  Draw  a  price  level  roughly  50%  between  the  O.R.  High  and  Low.  This  is  the  “middle”  of  the  O.R.  Box,  and  prices  will  tend  to  pull  back  to  the  “middle”  on  Range  –  Bound  days.    

 -­‐  The  “middle”  of  the  O.R.  will  also  serve  as  a  moderate  intraday  support  &  resistance  price  level.  But  not  as  important  as  the  O.R.  high  &  low  

EveryDay Profits  

Page 48: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Opening Range  

Page 49: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  If  the  Indexes  stay  between  the  O.R.  High  &  Low,  the  day  will  probably  be  Range-­‐Bound  

-­‐  Trade  Reversal  Trades  that  bounce  off  the  O.R.  Low  (support)  and  bounce  down  off  the  O.R.  High  (resistance)  

-­‐  Retracement  Trades  of  50%  or  more  are  very  likely  against  the  O.R.  High  &  Low  

EveryDay Profits  

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 Range-Bound Trading  

Page 51: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Range-Bound Trading  

Page 52: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  If  the  Indexes  move  beyond  the  O.R.  High  &  Low,  the  day  has  a  higher  probability  to  be  a  Trending  Day  

 

EveryDay Profits  

Page 53: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Trending-Day Trading  

Page 54: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Trending-Day Trading  

Page 55: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  Once  the  O.R.  High  is  broken,  look  for  Bullish  Trending  trades  taking  prices  Higher  

-­‐  A  strong  move  above  the  O.R.  High  is  considered  a  bullish  breakout,  and  can  be  used  as  an  entry  point  

-­‐  Use  Trend  Following  Indicators  -­‐  Look  for  Bull  Flags  and  Bullish  Pennant  paxerns  for  entry  points  

EveryDay Profits  

Page 56: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Trending-Day Trading  

Page 57: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  OPENING  RANGE  *    

-­‐  Opening  Range  [The  Magic  Box]  -­‐  Once  the  O.R.  Low  is  broken,  look  for  Bearish  Trending  trades  taking  prices  Lower  

-­‐  A  strong  move  below  the  O.R.  Low  is  considered  a  bearish  breakout,  and  can  be  used  as  an  entry  point  

-­‐  Use  Trend  Following  Indicators  -­‐  Look  for  Bear  Flags  and  Bearish  Pennant  paxerns  for  entry  points  

EveryDay Profits  

Page 58: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Trending-Day Trading  

Page 59: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

*  The  Mid-­‐Morning  Reversal*  

Page 60: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  Mid-­‐Morning  Reversal*    

-­‐  9:30-­‐9:35  AM  :  Market  Open  /  Opening  Gap    

-­‐  Overnight  order  imbalances  create  Gap  at  Open  

-­‐  Greater  #  Buy  Orders  :  Bullish  Gap  Higher  

-­‐  Greater  #  Sell  Orders  :  Bearish  Gap  Lower  

EveryDay Profits  

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 Opening Gap  

Page 62: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  Mid-­‐Morning  Reversal*    

-­‐  9:35-­‐10:00  AM  :  Opening  Range  

-­‐  Indexes  &  Individual  Stocks  make  ini-al  direc-onal  moves    -­‐  Opening  Range  can  be  Wide  or  Narrow  

-­‐  Wide  Opening  Range  :  facilitates  Range  Bound  trading  

-­‐  Narrow  Opening  Range  :  makes  it  easy  for  Breakout  Trades  

EveryDay Profits  

Page 63: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Wide Opening Range  

Page 64: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Narrow Opening Range  

Page 65: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  Mid-­‐Morning  Reversal*    

-­‐  10:00  –  10:45  AM  :  Likely  range  of  Mid-­‐AM  Reversal  

-­‐  If  Index  moving  45°  inside  O.R.  Box  it  will  emerge  at  the  top  or  boxom  of  the  O.R.  Box    

-­‐  It  can  have  immediate  50%  Reversal  trade  back  to  the  middle  of  the  O.R.  Box  

 

EveryDay Profits  

Page 66: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Quick Reversal at 10AM  

Page 67: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  Mid-­‐Morning  Reversal*    

-­‐  10:00  –  10:45  AM  :  Likely  range  of  Mid-­‐AM  Reversal  

-­‐  If  emerge  from  middle  of  O.R.  Box,  Index  can  then  move  toward  an  O.R.  High  or  Low  price  level  

-­‐  From  There  it  can  make  a  Reversal  trade  against  the  Support    and  Resistance  Levels  

EveryDay Profits  

Page 68: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Mid-Morning Reversal  

Page 69: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  *  The  Mid-­‐Morning  Reversal*    

-­‐  10:00  –  10:45  AM  :  Likely  range  of  Mid-­‐AM  Reversal  

-­‐  If  the  Ini-al  O.R.  Move  creates  a  Run-­‐away  Breakout  Higher  or  Lower,  it  may  be  an  Overall  Trending  Day,  and  any  Retracements  against  the  prevailing  move  will  not  be  overly  profitable  

-­‐  Breakouts  on  Trending  Days  should  be  played  in  the  direc-on  of  the  Breakout  move  with  Trend  Following  trades.  

EveryDay Profits  

Page 70: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Trending : No Mid-Morning Reversal  

Page 71: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Trade  Setups  for  Reversals  

Page 72: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Reversals    

-­‐  Increasing  prices  vs.  Resistance  levels  

-­‐  Single  Tops  :  fairly  common,  most  likely  will  succeed  with  moderate  bullish  momentum  and  against  O.R.  High  or  against  previous  Daily  Highs  

 

EveryDay Profits  

Page 73: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Reversals    

-­‐  Increasing  prices  vs.  Resistance  levels    -­‐  Double  Tops  /  Bearish  Divergence  :  s-ll  common,  higher  probability  of  success  because  of  2  points  of  momentum  &  prices  to  compare,  higher  probability  against  O.R.  High  or  against  previous  Daily  Highs  

 -­‐  Enter  at  the  Second  high,  at  the  first  lower  low,    as  bearish  trade  

 

EveryDay Profits  

Page 74: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Reversals    

-­‐  Increasing  prices  vs.  Resistance  levels    -­‐  Head  &  Shoulders  Paxern  :  Triple  Top  

-­‐  Decreasing  Momentum  Setup  -­‐  U-lize  “Value”  reading  for  maximum  efficiency  -­‐  Watch  for  Double  Top  /  Bearish  Divergence  paxern  to  possibly  develop  into  H&S  paxern  

-­‐  Enter  at  the  Right  Shoulder  as  bearish  trade  

EveryDay Profits  

Page 75: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Reversals    

-­‐  Decreasing  prices  vs.  Support  levels  

-­‐  Single  Boxoms  :  fairly  common,  most  likely  will  succeed  with  moderate  bearish  momentum  and  bounce  up  off  O.R.  Low  or  up  off  previous  Daily  Lows  

 

EveryDay Profits  

Page 76: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Reversals    

-­‐  Decreasing  prices  vs.  Support  levels  

-­‐  Double  Boxoms  /  Bullish  Divergence  :  s-ll  common,  higher  probability  of  success  because  of  2  points  of  momentum  &  prices  to  compare,  higher  probability  against  O.R.  Low  or  against  previous  Daily  Lows  

 -­‐  Enter  at  the  Second  Low  :  at  the  first  higher  high,  as  bullish  trade  

 

EveryDay Profits  

Page 77: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Reversals    

-­‐  Decreasing  prices  vs.  Support  levels  

-­‐  Inverse  Head  &  Shoulders  Paxern  :  Triple  Boxom  -­‐  Increasing  Momentum  Setup  -­‐  U-lize  “Value”  reading  for  maximum  efficiency  -­‐  Watch  for  Double  Boxom  /  Bullish  Divergence  paxern  to  possibly  develop  into  Inverse  H&S  paxern  

-­‐  Enter  at  the  Right  Shoulder  with  bullish  trade  

 

EveryDay Profits  

Page 78: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Trade  Setups  for  Breakouts  

Page 79: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Breakouts    

-­‐  Bullish  Breakout  :    

-­‐  Move  above  Resistance  Level,  with  increasing  Bullish  momentum  

-­‐  Look  for  Stronger  bullish  momentum  than  the  previous    test  of  resistance  

-­‐  Watch  for  “Last  Kiss”  retest  of  Level  before  con-nuing  move  higher  

EveryDay Profits  

Page 80: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Bullish Breakout  

Page 81: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trade  Setups  for  Breakouts    

-­‐  Bearish  Breakout  :    

-­‐  Move  below  Support  Level,  with  increasing  Bearish  momentum  

-­‐  Look  for  Stronger  bearish  momentum  than  the  previous  test  of  resistance  

-­‐  Watch  for  “Last  Kiss”  retest  of  Level  before  con-nuing  move  lower  

EveryDay Profits  

Page 82: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Bearish Breakout  

Page 83: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Beware  the  Lunch-me  Doldrums  

Page 84: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 The Doldrums : 12 Noon – 2PM  

Page 85: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Beware  the  Lunch-me  Doldrums    

-­‐  “Doldrums”  :  A  period  of  choppy,  rela-vely  non-­‐direc-onal  movement  in  the  indexes  

-­‐  Trading  ac-vity  slows,  Prices  move  into  sideways  channels  -­‐  Normally  starts  around  12pm,    +/-­‐  30  minutes  -­‐  Lasts  around  2  hours  -­‐  Normally  ends  around  2pm,    +/-­‐  30  minutes  

EveryDay Profits  

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 The Doldrums : 12 Noon – 2PM  

Page 87: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Beware  the  Lunch-me  Doldrums    

-­‐  The  Transi-on  into  the  Doldrums  is  marked  by  slow  down  of  trading,  and  price  ac-on  choppiness  

-­‐  The  Transi-on  out  of  the  Doldrums  is  usually  marked  by  a  strong  direc-onal  move  in  the  indexes,  and  increased            market  ac-vity  

-­‐  Trading  during  the  Doldrums  will  usually  be  difficult  because    of  the  non-­‐direc-onal  nature  of  price  ac-on  

EveryDay Profits  

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 The Doldrums : 12 Noon – 2PM  

Page 89: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

The  Aiernoon  Move  

Page 90: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  The  Aiernoon  Move    

-­‐  Aiernoon  Session  starts  when  Indexes  shows  strong  price  ac-on  and  momentum  move  out  of  the  Doldrums  period  

-­‐  Usually  2:00PM  +/-­‐  30  minutes  

-­‐  Aiernoon  Session,  usually  1  major  direc-onal  move  

-­‐  Can  be  :  Range-­‐Bound  Trading  or  Breakouts  

EveryDay Profits  

Page 91: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Jump into Afternoon Move  

Page 92: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  The  Aiernoon  Move    

-­‐  Range  Bound  Trading  

-­‐  If  the  Morning  Session  was  Range-­‐Bound,    Aiernoon              Range-­‐Bound  Trading    will  con-nue  to  move  between                      O.R.  High  &  Low  

-­‐  Watch  Momentum  as  price  approaches  O.R.  High  or  Low  to  see  if  there  may  be  a  breakout,  if  it  does,  this  will  turn  into  a  Momentum  Breakout  

EveryDay Profits  

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 Range-Bound Afternoon Move  

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•  The  Aiernoon  Move    

-­‐  Momentum  Breakouts  

-­‐  If  the  Morning  Session  was  Range-­‐Bound,    the  aiernoon  can  see  a  Breakout  move  above  or  below  O.R.  Highs  or  Lows  

 -­‐  If  the  Morning  Session  was  a  Breakout,  the  aiernoon  can  see  a  con-nua-on  Breakout  move  in  the  same  direc-on  

-­‐  Or,  it  can  see  a  Rapid  Snapback  to  the  Opening  Range  Box  in  opposite  direc-on  

EveryDay Profits  

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 Momentum Afternoon Move  

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•  The  Aiernoon  Move    

-­‐  Late  Day  Snapback  Trade  -­‐  If  the  Index  has  been  Moving  Strongly  in  one  direc-on  for  the  majority  of  the  trading    day…  

-­‐  Be  on  the  lookout  for  a  very  quick  snapback  trade  in  the  last  30-­‐45  minutes  (3:15pm),  back  towards  the  O.R.  Box  

-­‐  This  move  will  start  slowly,  but  will  quickly  break  and  move  very  fast  

EveryDay Profits  

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 Late Day Snapback Trade  

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•  The  Aiernoon  Move    

-­‐  Late  Day  Snapback  Trade  -­‐  All  the  Indexes  will  tend  to  move  in  unison  

-­‐  Late  Day  Snapbacks  tend  to  happen  in  33%  of  strong  movement  days  

-­‐  Friday  is  a  favorite  day  for  these  Snapback  Trades  

EveryDay Profits  

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 Late Day Snapback Trade  

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Trading  into  the  Close  

Page 101: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  into  the  Close    

-­‐  The  Close  is  usually  considered    the  last  30  minutes  of  the  session  

-­‐  The  indexes  are  either  moving  in  the  dominant  direc-on  of  the  day  

-­‐  Or,  moving  in  the  direc-on  of  a  Snapback  trade    

EveryDay Profits  

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•  Trading  into  the  Close    

-­‐  Take  much  cau-on  trading  during  the  last  5-­‐7  minutes  as  the  markets  become  very  quick  moving  and  rela-vely  choppy  

-­‐  Last  minute  posi-on  buys  &  sells  move  prices  erra-cally    

-­‐  Market  on  close  orders  can  disrupt  price  paxerns    

EveryDay Profits  

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 Market Close Volatility  

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Do  I  hold  Overnight?  

Page 105: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Do  I  hold  Overnight?    

-­‐  Intra-­‐Day  Trading  Focus  usually  has  us  exi-ng  posi-on  prior  to  the  market  close  

-­‐  If  you  have  a  posi-on  with  a  “profit  cushion”  you  might  consider  holding  for  a  con-nua-on  move  the  next  trading  day  

EveryDay Profits  

Page 106: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Do I Hold Overnight?  

Page 107: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Do  I  hold  Overnight?    

-­‐  Check  the  Daily  and  60  min  trend  strength  

-­‐  Could  this  be  part  of  a  swing  move  of  3-­‐5  days?  

-­‐  Could  you  take  Par-al  Profits  and  leave  a  part  of  the  posi-on  for  tomorrow?  

-­‐  Is  the  Profit  Cushion  enough  to  cover  AM  gap?  

EveryDay Profits  

Page 108: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 Do I Hold Overnight?  

Page 109: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Trading  Account  Size  

-­‐  A  straight-­‐forward  method  -­‐  

Page 110: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  Account  Size  -­‐  a  straight-­‐forward  method    

-­‐  Not  Advice,  just  general  Guidelines…  

-­‐  Select  your  risk  level  based  on  your  overall  financial  condi-on,  risk  tolerance,  and  trading  experience…  

EveryDay Profits  

Page 111: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  Account  Size  -­‐  a  straight-­‐forward  method  

-­‐  The  1/3  ac-ve,  2/3  reserve    account  

-­‐  Example  :  $30,000  account  

-­‐  Ac-ve  por-on  :  $10,000  

-­‐  Reserve  por-on  :  $20,000    

EveryDay Profits  

Page 112: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  Account  Size  -­‐  a  straight-­‐forward  method  

-­‐  Ac-ve  por-on  :  $10,000  

-­‐  Commit  10%  –  20%  per  trade,    $1,000  -­‐  $2,000  

-­‐  1  ac-ve  trade  at  a  -me      

EveryDay Profits  

Page 113: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  Account  Size  -­‐  a  straight-­‐forward  method  

-­‐  Account  Harves-ng  -­‐  

-­‐  Weekly  basis,  calculate  increase  to  Trading  account  

-­‐  Take  50%  of  growth,  transfer  out  of  trading  account,  where  the  market  cannot  take  it  back  

   

EveryDay Profits  

Page 114: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  Account  Size  -­‐  a  straight-­‐forward  method  

-­‐  Account  Harves-ng  -­‐  

-­‐  Remaining  50%  of  growth,  stays  in  Trading  account  

-­‐  Recalculate  Ac-ve  &  Reserve  amounts  for  next  week      

EveryDay Profits  

Page 115: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Grow  into  Sustainable  Profits  

Page 116: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Grow  into  Sustainable  Profits    

-­‐  Trading  Account  Growth  is  based  on  Trading  Success  

-­‐  Trading  Success  is  a  combina-on  of  :  

-­‐  Consistent  Trading  +  Improving  Trading  Skill  

EveryDay Profits  

Page 117: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Grow  into  Sustainable  Profits    

-­‐  Do  not  Trade  too  big  size  too  fast  

-­‐  Time  =  Experience  

-­‐  Experience  =  Comfort  

EveryDay Profits  

Page 118: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Grow  into  Sustainable  Profits    

-­‐  Not  Advice,  just  general  Guidelines…  

-­‐  Do  not  increase  your  trading  size  if  you  feel  increased  trading  pressure,  (thinking  about  P/L,  more  than  the  trade)  

-­‐  Scale  back  un-l  you  can  trade  comfortably  

EveryDay Profits  

Page 119: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Grow  into  Sustainable  Profits  -­‐  Start  with  1  contract  

-­‐  Then  move  to  2  contracts  

-­‐  Then  to  3  or  4  contracts  

-­‐  Then  to  5  contracts  

-­‐  Then  increase  by  +2  un-l  at  scale  

EveryDay Profits  

Page 120: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Trading  through  the  Day  

Step  by  Step,  1-­‐2-­‐3  

Page 121: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  Pre-­‐Market  -­‐  Economic  Reports  -­‐ Major  news  -­‐  Previous  Day’s  High/Low  levels  -­‐ Major  momentum  Gaps  at  open  

EveryDay Profits  

Page 122: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  At  Open  -­‐  Let  market  work  through  open  orders  –  5  min    -­‐ Watch  the  price  ac-on  for  the  Open  Range    

EveryDay Profits  

Page 123: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  At  Open  -­‐ Watch  your  trading  stocks  :  

-­‐  Ac-ve?  -­‐ Moving  with  the  Indexes?  -­‐ Moving  unlike  Indexes  

EveryDay Profits  

Page 124: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  At  10  AM…  Create  the  Opening  Range  Box    Determine  Range  Bound  vs  Trending  Day  -­‐  Trade  each  appropriately:  -­‐  Look  for  poten-al  1st  Reversal  -­‐  Look  for  ac-ve  breakout  moves  

EveryDay Profits  

Page 125: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  At  10:15  AM…  -­‐  Start  to  ac-vely  look  for  20-­‐30  minute  ini-al  move  higher  or  lower  in  indexes  

-­‐  If  you  see  the  ini-al  move,  look  for  Mid-­‐AM  Reversal  to  Start  between  10:15  AM  and  10:45  AM  

EveryDay Profits  

Page 126: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  At  start  of  Mid-­‐AM  Reversal…  -­‐  Look  for  a  poten-al  50%  Retracement  of  the  Ini-al  Move    

-­‐  Look  to  O.R.  High/Low  for  support/resistance  

-­‐  Follow  the  Indexes,  trade  Futures,  ETFs,  or  Op-ons  in  ETFs  or  Individual  Stocks  

EveryDay Profits  

Page 127: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  During  Range-­‐Bound  Mornings,  

-­‐  Look  for  Reversal  Trades  at  O.R.  Levels,  and  previous  day’s  High/Low  price  levels  

-­‐  50%  retracement  should  be  primary  profit  targets  

-­‐  Allow  small  “runner”  posi-ons  to  profit  from  61.8%,  76.4%,  and  100%  retracement  moves  

EveryDay Profits  

Page 128: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  During  Trending  Mornings…  

-­‐  Enter  the  Trend  at  Breakout  Levels.  -­‐ O.R.  High/Low  -­‐  Previous  Day’s  High  Low  -­‐ Major  Support/Resistance  levels  

-­‐  Enter  the  Trend  at  Consolida-on  paxerns  -­‐  Bull/Bear  Flags  -­‐  Con-nua-on  Pennants  

EveryDay Profits  

Page 129: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  During  Trending  Mornings…  

-­‐  Use  efficient  Trend  Following  Indicators  to  indicate  changes  in  trend  to  exit  the  trades  

-­‐  Use  Fibonacci  Extension  levels  to  project  Profit  Targets  

-­‐  Use  the  “Follow-­‐up”  Stop  loss  method  to  Lock-­‐In  profits  

EveryDay Profits  

Page 130: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  Between  11:30AM  -­‐  12:30PM…  -­‐  Watch  for  the  start  of  “choppy”  price  movement  and  price  bars  in  both  the  indexes  &  stocks  

-­‐  This  will  signal  the  start  of  the  Lunch  “Doldrums”  

-­‐  It’s  best  to  try  to  limit  trading  during  these  -mes  

EveryDay Profits  

Page 131: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  Star-ng  around  2PM…  entry  into  Aiernoon  period    -­‐  Watch  for  the  start  of  a  move  of  significance  with  associated  momentum  in  both  the  indexes  &  stocks  

-­‐  This  will  signal  the  exit  of  the  Lunch  “Doldrums”  

 

EveryDay Profits  

Page 132: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  From  the  “Exit”  of  Doldrums  un-l  about  3:30PM  …  is  the  Aiernoon  Period  

 1.  Breakout  of  the  Opening  Range  in  a  Range-­‐Bound  Day  

                                         OR    

2.  Pullback  of  a  Breakout  Move,  back  towards  O.R.  Box  

 

EveryDay Profits  

Page 133: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  From  the  “Exit”  of  Doldrums  un-l  about  3:30PM  …  is  the  Aiernoon  Period  

-­‐  If  you  don’t  get  a  Major  Move,  look  for  con-nued  Range  Bound  Trades,  usually  inside  the  O.R.  Box  [  Very  Contained  Day]  

 

EveryDay Profits  

Page 134: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  3:30  –  3:45  PM…  Moving  into  Close  

-­‐  Be  Alert  to  a  rapid  Snapback  Trade  if  there  has  been  a  major  price  move  that  day.  

-­‐  Be  especially  Alert  on  Fridays  

 

EveryDay Profits  

Page 135: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

•  Trading  through  the  Day  :  Step  by  Step,  1-­‐2-­‐3    

-­‐  3:30  –  3:45  PM…  Moving  into  Close  

-­‐  Decide  if  holding  any  posi-ons  Overnight  

-­‐  Exit  Posi-ons  by  3:50  PM  to  avoid  Closing  Price  Vola-lity  

 

EveryDay Profits  

Page 136: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

EveryDay  Profits  –  Next  Steps  –  

Page 137: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

–  Next  Steps  –    

-­‐  Watch  Workshop  Video  recommended  4  Times  1.  Review  2.  Take  Notes  3.  Review  workshop  referencing  Notes  4.  2-­‐3  weeks  later  :  Review  with  Notes  

 

EveryDay Profits  

Page 138: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

–  Next  Steps  –    

-­‐  Work  through  historical  5  minute  charts  

-­‐  Charts  of  Indexes  (SPY,  QQQ)  

-­‐  Charts  of  Stocks  (GOOGL,  NFLX,  AAPL,  AMZN)  

 

 

EveryDay Profits  

Page 139: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

–  Next  Steps  –    

-­‐  Markup  actual  Price  Charts  :    -­‐  Block  off  Opening  Range  -­‐  Create  O.R.  High/Low/Middle  price  levels  -­‐  Observe  Price  Ac-on,  Reversal  Paxerns,  Trends  

 

 

EveryDay Profits  

Page 140: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 

Thank You  

Page 141: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 

EveryDay Profits  

Page 142: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 

EveryDay Profits  

Page 143: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

 

EveryDay Profits  

Page 144: Thomas Wood | MicroQuant Identifying Key Support and ...Profits+Workshop... · Identifying Key Support and Resistance Levels presented by Thomas Wood | MicroQuantSM Everyday Profits

Thank You for your Attendance