Andrew B
90 posts

Andrew B
@Vellfire19907
Student of Stock market, Trading ranges and Gaps. Follow my trades to loose money.
Katılım Mart 2025
25 Takip Edilen15 Takipçiler

Trading Paradigm for oversold bounces - My last 5 years of process refinement (This works for me)
1. Trade at the price zones
- Daily horizontal zones are the most effective
- followed by Trend lines
- Chart patterns
Rest all - I ignore - MA, Fib, vwap, Bollinger etc.
I believe all the above are encapsulated in price levels
2. Reduce "R" based on the structure definition, not random %
Implication: Large position size
Faster to multiple "R"
Likely same-day conversion to zero-risk swing
Let us take an example
$AEHR - Zone is at 75-76
Why?
Gap-up, Resistance flipped to support, successful test (marked as circles on the chart)
It makes sense to have a quick oversold play around this.
How to increase the odds: I cannot stress the importance of secondary tools enough. I need to be sure that the price action is lining up with the zones marked in my chart.
The order is extremely important - Price zones and then bookmap, NOT reverse
For $AEHR - we see the price touch 76.x
- Do I see a volume surge?- No
For breakouts and breakdowns, a typical volume surge is required.
This is a first test - Usually, this gives a good bounce. Enough for a successful day trade. The second test has a higher probability of breaking it down.
If you enter at 77, stop at 76.25, trim 75% at 5R - that is 80. What remains after trim is a decent-sized swing, which is still relevant


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I'm starting to reach out to speakers for this year's @TraderLion conference!
It will take place in Mid-July
Who would you love to see present? 👇
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