How to adapt to the Holiday Volatility in 2020. Day Trading

hello guys steven dux here welcome to this video today we're going to talk about some of the tickers that happened this week and i also experienced some of the very strange actions from the market so while i selected in total of four takers and i'm going to talk about some of the common factors that i shared during this week so we will be able to figure out a potential edge or how to really react without taking multiple losses in a row so before i get into this video make sure to click the like button and

subscribe and i will appreciate that and let's get into the video so out of those four takers i'm going to point now some of the easy factors for you to recognize especially during the morning so you will be able to prevent all those mistakes from happening especially in the first 30 minutes after market open um let's look at evk lizi and hgsh ppsi all of those four tickers traded over 10 million shares in the pre-market and some of it traded over 20 million shares in the pre-market we talked about this volume estimation before that you

are using the pre-market volume times 10 to estimate the entire day volume and that's how you really predict and to see if the stock is going to get crowded or not during the day for ppsi hgsh all those stickers they traded over 10 million and i think liz i traded over 20 million so this one's the most crowded let's start with the first one uvk this is after our gapper went from two to seven it opened around six and let's look at the entire yearly chart we have resistance close to 120 million around six but

if we look at the intruder chart there's no consolidations it's just a pure parabolic resistance then infinite dump chart when you can't find a consolidation for it to risk off it's going to be a little dangerous especially you're shooting into a massive resistance in this case first taker i didn't get shares to shore but if i did the gestures to shore i think i could take a decent loss on this one because uh for me 100 million resistance is a solid amount of resistance if i sure risking the 6.7 and i will probably take a

loss once it breaks through the six thirty dollar area but after that i consolidated it traded over 100 million throughout the day then eventually broke it down one of the thing that i noticed is for these type of very crowded ticker and after the morning squeeze they don't usually drop the average percentage that i expect them to so in this case ebk dropped it only 50 percent but you see that normal gap up short drops over 75 or lower than that so when you were looking at the chart that the stock didn't really fade the

ideal point that you expected it's a potential to short into the next day so for evk i was looking for a little push and potentially get to the low six or the mid six to short into but turns out didn't really give me the push in the morning so i kind of just let that one go but usually when you see this type of crowded ticker this is the only one sample that i saw out of hundreds of samples that they produce the squeeze like that so that was a really strange morning spike and how

to really manage your risk i would say that if you're using the resistance if you're really close to the resistance as a risk to short into then i would definitely risk where you entered so that you can avoid this type of loss or you can keep it to the minimum so in the next sticker i'm going to talk about li zi this one traded over 20 million shares in the pre-market and i already noticed that in the pre-market i also showed it around 4.7 which i kind of broke my rule because i tend to avoid

this type of very crowded ticker that trades over 200 million shares a day but if you look at another 100 million resistance very similar to uh evk but it's more crowded compared to that ticker so you can see pretty much every single ticker that trades over 20 million shares or 10 million shares they always produce some very unpredictable squeeze especially during the consolidation so ebk did a squeeze l-i-z-i did another squeeze and slow grinded forced people to bite the breakout and dumped after the breakout so that was a long trap as well then hgsh this

one also traded tons of mile in the pre-market weird squeeze after open ppsi same thing very solid resistance back in the days almost 300 million but still he did multiple squeeze during the day so all of those four tickers the conclusion will be that when you are trying to shore into this type of heavy resistance if the stock gets really crowded always wait until after 10 30. i would recommend for that especially that for the crowded tickers it is not ideal to short at open even though when you are very close to the resistance so

the second factor that they commonly share for those four tickers is three out of four tickers they faded in the afternoon only four liz-i dumped and faded into the next day ppsi dumped well this one didn't produce enough range so it dumped you lose 75 percent from the high but for l i z i evk as i said majority of these type of ganners they drop 75 percent from the high so let's point it outwards the 75 percent is so if you look at uh the 75 reward will be so this is the high drop

75 percent will be anywhere between 3.5 into this consolidation same thing with uh li zi 75 percent if we zoom out the chart right about here this is how you really figured out if the stock has a potential opportunity to shorten to into the next day if they didn't fade to the maximum reward so in this case evk lici does have potentials into the next day but hgsh and ppsi doesn't so this is how you figure out if there is a decent amount of reward into the next day and also when you are looking at

the chart action you can see that there are some of the factors they share most of the time and also i should give you a decent idea where you should sizing in and at what time there's sometimes you have to avoid especially for the first 20 minutes to 30 minutes so that will be all the details that i figured out in this week trying to adapt to the market personally for me it's not a great week i should definitely cut well majority of those opportunities but turns out i got two rushed into the entry and

took some losses and made some small gains hopefully that i will be ready in the next week so no matter how many years we're in the market you're always trying to adapt so for you guys uh please don't forget to check out the details on the stocks and that will be end of this video thank you very much for watching and i'll see you guys in the next one [Music] you