Good to be back. Caught ROKU when it was trading around 154. Added slowly as it kept going up and sold around 158-159. Alittle early given that it moved 5 extra points, nevertheless solid trading and that’s all we can ask for. 📈💰 #trading#optiontrading
Many top trading pros use the ATR trailing stop (with varying settings) to enter(long or short). To the contrary, many YouTube fake trading experts say, “you don’t use ATR trailing stops for entry, just to exit at a loss or to let a profitable trade become less profitable.” The former are focused on winning and don’t use a well known zone to get trapped by algorithms, but ride on the back of algorithms to victory. The latter are focused on losing, “oh no, my position is losing, I hope my stock turns direction or I’ll eat my loss at the ATR trailing stop.” Why wait on a massively used stop level to eat a loss? Sometimes yes, but if a trade is not working in a reasonable amount of time, I prefer cutting quick to keep losses smaller (when possible) and entering at a better time or abandoning that trade idea.
HERE’S THE APPROACH TO USING ATR TRAILING STOPS A PRO taught me.
ENTER LONG when price breaks the ATR trailing stop to the upside on the 15min chart, if price is also above the ATR trailing stop on the 5min chart (or if price breaks above the 5min if already above the 15min), and the stock generally looks bullish as confirmed by other indicators like MACD, etc. Consider exiting quick if price turns fast and can’t hold above the 5 and/or 15min ATR trailing stop that the price just broke through. DO THE OPPOSITE FOR SHORT PLAYS.
A MORE AGGRESSIVE APPROACH is to jump in early as price moves towards the ATR trailing stop (but before it breaks through). Also, looking where the ATR trailing stop sits on the 5 and 15 minute charts is a good indicator of whether the short term trend is bullish or bearish.
NO STRATEGY IS PERFECT OR WORKS 100% OF THE TIME, BUT I LOVE ❤️ THIS STRATEGY!