welcome everyone this is John Sheely at Iamadaytrader.com we're going to
take a look at a particular trading strategy how to catch a larger profit
objective when you see prices are actually setting a new low let's take a
look but of course we must have our disclosures now remember trading does
carry a large number and the high level of risk and trading is not suitable for
all persons also past returns are not necessarily indicative of future results
also you must review our hypothetical disclaimer it's very important to review
each part of the disclaimer here I was taking a trade today based upon the
price action and the crude oil and here's how we're setting this up as you
can tell previously this is a between 3:00 and 4:00 in the morning we had a
lower price of 48:54 an hour 10 o'clock period we actually were getting
underneath the lobe by only 2 cents so we were looking to see if we were going
to have a much larger price move or whether or not prices are going to
basically support this particular price level let's take a look instead we
actually had prices to touch at 48.50 even 48.49 which we'll discuss in a
little bit prices begin to move up so we're still looking at the trend again
this is what we're looking at here in regards to price we're talking about a
15-minute chart but the moving averages are now getting very very bearish and
you can see we've had a bounce but it wasn't very large so we're looking for a
sell if prices begin to move lower and lower now let's go to the end of the
story here I'm using the 233 tick chart for our chart to enter the trade now
here is that price action that actually bounced at 48.50 we were watching we're
looking at our moving averages and they're beginning to move down so we're
now looking at as a possible short we also have a certain strategy that we
have now it's called the T20 and of course we teach all of our members how
to enter this particular strategy prices are beginning to move down and
we're looking for now a short position here I went ahead and called the trade
into our room and I discussed that we're going to put on a short position our
stop loss is going to be around the 64 area so you can say it's a profit
objective in this particular case just under the Low's stop-loss just above
the 64 area so let's see how prices developed here we had a sell-off but I
wanted to have a profit objective just underneath the 48.50 actually a 48.48
just under the 48.50 but instead what happened it touched 48.49 and then it
actually bounced up so I was not filled and regards to my profit objective
originally in fact as you can tell we almost had a stop loss that was lowered
to our breakeven price so I almost was basically out of the trade for a no game
but what here's what happened the prices came back to the area and it did not go
underneath this supporter not once not twice but actually third time so
what did I do I cancelled my original limit that was
just underneath the low why did that tell members that I'm going to do that
because if prices break this level do I think prices are going to only go
down only another one or two cents of course not
this is basically building up sell stops just under these lows so the push of
price underneath the new sellers are going to drive prices lower so what I do
I lowered my profit objective originally I was looking for a profit objective of
$100 but instead I lowered my limit because I believe the sellers were going
to push prices just a little bit lower and of course this was all set up in our
room step by step of why I made changes our profit objective and this is the
rest of the story as you tell prices have come down they touch the 48:48 but
this is where the sell stops then hit and hit again and so it reached my
profit objective of 48.43 an additional $50 for the trade and is all because I
expected a sellers to drive the price underneath this support area and of
course I discussed the trade very carefully to our members while we
adjusted our stop why we adjusted our profit targets to have a larger profit
because we expected a large number of sellers would hit our new lower profit
target I hope you've enjoyed this short video and remember to download our free
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