I enjoyed the thought process behind his entry on 97.50, and comparing it to how I would've justified my entry at that level. There are so many different ways to trade that opening momentum and seeing this added value to my playbook. 👍
I love how Jeff really tried to drive home a couple key points. It's a momentum trade. you don't need to predict every price level. have your stop. have a target. and react to the tape. Take what the market is giving you and get out. In a high momentum trade like this, Tape is where you can see the shifts happening. If you're trading momentum, slowing momentum IS your main indicator here. Not just price levels. Great job driving home the point that you this is a momentum scalp. Get in. Get out. Take it. It doesn't matter if it keeps going later or flushes. You got your slice and onto the next one.
I love the simplicity of this trade plus your early in I'm already thinking "whats my next set up" I would love to see if there was any further continuation from where you took profits.
Noticed this this morning with aapl. Expected at least a little upside to it and the pops were quick and followed by quicker sell offs. I made a nice profit but thought to myself, this is where reading the tape would be interesting I suppose, on those really fast pops
If anything, this trade was a small scalp on a breakout, and doesn't deserve to be called a momentum trade. One major problem with the execution of this "momentum trade" was using the tape to define your exit. There was absolutely no reason to exit this trade if it was truly a momentum trade, and part of the reason for the poor execution was because the trader here had no exit strategy going into the trade. You should know before even entering a momentum trade what levels you will take profits at as well as adjusting your stop accordingly, rather than "feeling out" that information from the tape. The problem with relying on the tape for exits on a momentum trade is that you get faked out on trivial pullbacks when you should still be holding. Despite the tape slowing, the trend NEVER changed. If it was a scalp then there's absolutely nothing wrong with that, but not on momentum trades especially when there is literally NO CHANGE in trend. Just take a look yourself at AMD on 4Aug22; the trend never changes and the momentum continues to hold up for almost the ENTIRE day. Taking exits when it is not even necessary leads to overtrading, not to mention looking for later entries completely ruins your RR. If you couldn't even capture 1R (0.90/1.00) on a massive trend move, how do you expect to get more favorable RR on subsequent entries later in the day (especially as momentum will inevitably die down)? I don't blame the trader since he is probably new to the firm, but it is a bit frustrating how Jeff inconsistently calls this out in some momentum trade reviews and not others. In this video, Jeff encourages just getting out of the trade and looking for another entry later on. In previous videos, Jeff criticizes newer traders for taking exits too early on similar or even more aggressive momentum trades. (Example: 13:31 "Now that's real acceleration right there, and so it's almost like, after that, that's like alright, that's pretty good, Ima take that." -- Do you see the huge problem with that?? Since when is that EVER a justification for taking an exit? There is literally no concern for following any sort of price level/area, no concern for support/resistance levels, and no concern for a predefined exit strategy. This is only one moment in time in the video; there are countless other instances in this video and in previous videos where the inconsistencies become more and more ridiculous. One might argue that "the acceleration was so aggressive" and that "this time is different", but (1) there was no clear exit strategy in place and no rules were followed aside from "it was a fast move so I don't want to be in the trade anymore", and (2) traders in previous videos have traded small/micro caps with even LARGER moves than large cap stocks like AMD and have been criticized for exiting too early, so what is the reason for exiting this time? The hypocrisy is unreal in this one.) I left a comment on a previous video a while ago about Jeff's inconsistencies which was shrugged off, and this is exactly what I'm talking about. I am starting to believe Jeff doesn't know what he's talking about and only says whatever happens to be on his mind at the time for the sake of providing feedback, even when he clearly has a pattern of being inconsistent. Anyone else notice this too? It's starting to get more and more out-of-hand, we need Lance back ASAP.
well, I guess you're missing the point here -I think this video is more an example of a 'momo scalp' trade, other than intraday swing trade (which could indeed had been taken here, but that was not the point) -as I noticed, SMB videos often focus on some narrow point, in order to make it easier to explain (they didnt even go into trading fundamentals or TA of the trade here, as it wasnt necessary to the purpose) -in other situation and in general this exit would be appropriate: as Jeff said, you could do this trade in rnd situations throughout the day, and even take a short there, in other setups so I think you are taking it too literally and overreacting a bit :) I dont think there is smth wrong with Jeff, he doesnt have to go through every nuance of this setup in a 20 mins video
@@sergeystankov3068 Exactly that's the point. We should separate this trades one from another.. My approach of this could be 2-3 difrent trades. Let's say few momentum scalps and in same time with intraday separetet position 2 in one.
Great video, Thanks Caleb and Jeff. One question, why not think about going short if it had broken and held prior afternoon level of 97? Caleb mentioned he will not take the trade in this case.
What is the expected win rate on this trade? I mean you are risking 1R to make less than 1R and you are happy with it. I wouldn't have taken profit until just shy of 99.50 (half position) if using your stop and I would have held the rest all the way back to my stop for a break-even trade or until a higher low was broken...looks like my plan would have taken profits and closed the trade on the second half of the position at $103.34 ish on the 12:40 pm candle. How wrong is that? I only win about 40% of my trades. Do you take profits early just to reduce exposure time in the market or to capitalize on other opportunities? When I get in a winning trade my thoughts are to squeeze it until the trend changes as its easier to make money on a winning trade than it is to find another winning setup. But this doesn't seem to be at all what the pros do. Why?
I agree with you, there are a lot of inconsistencies in this video, and they definitely exited way too early especially considering the trend never changed and the momentum continues to hold up for almost the ENTIRE day. Taking exits when it is not even necessary leads to overtrading, not to mention looking for later entries completely ruins your RR. Check my comment I left above: ----- If anything, this trade was a small scalp on a breakout, and doesn't deserve to be called a momentum trade. One major problem with the execution of this "momentum trade" was using the tape to define your exit. There was absolutely no reason to exit this trade if it was truly a momentum trade, and part of the reason for the poor execution was because the trader here had no exit strategy going into the trade. You should know before even entering a momentum trade what levels you will take profits at as well as adjusting your stop accordingly, rather than "feeling out" that information from the tape. The problem with relying on the tape for exits on a momentum trade is that you get faked out on trivial pullbacks when you should still be holding. Despite the tape slowing, the trend NEVER changed. If it was a scalp then there's absolutely nothing wrong with that, but not on momentum trades especially when there is literally NO CHANGE in trend. Just take a look yourself at AMD on 4Aug22; the trend never changes and the momentum continues to hold up for almost the ENTIRE day. Taking exits when it is not even necessary leads to overtrading, not to mention looking for later entries completely ruins your RR. If you couldn't even capture 1R (0.90/1.00) on a massive trend move, how do you expect to get more favorable RR on subsequent entries later in the day (especially as momentum will inevitably die down)? I don't blame the trader since he is probably new to the firm, but it is a bit frustrating how Jeff inconsistently calls this out in some momentum trade reviews and not others. In this video, Jeff encourages just getting out of the trade and looking for another entry later on. In previous videos, Jeff criticizes newer traders for taking exits too early on similar or even more aggressive momentum trades. (Example: 13:31 "Now that's real acceleration right there, and so it's almost like, after that, that's like alright, that's pretty good, Ima take that." -- Do you see the huge problem with that?? Since when is that EVER a justification for taking an exit? There is literally no concern for following any sort of price level/area, no concern for support/resistance levels, and no concern for a predefined exit strategy. This is only one moment in time in the video; there are countless other instances in this video and in previous videos where the inconsistencies become more and more ridiculous. One might argue that "the acceleration was so aggressive" and that "this time is different", but (1) there was no clear exit strategy in place and no rules were followed aside from "it was a fast move so I don't want to be in the trade anymore", and (2) traders in previous videos have traded small/micro caps with even LARGER moves than large cap stocks like AMD and have been criticized for exiting too early, so what is the reason for exiting this time? The hypocrisy is unreal in this one.) I left a comment on a previous video a while ago about Jeff's inconsistencies which was shrugged off, and this is exactly what I'm talking about. I am starting to believe Jeff doesn't know what he's talking about and only says whatever happens to be on his mind at the time for the sake of providing feedback, even when he clearly has a pattern of being inconsistent. Anyone else notice this too? It's starting to get more and more out-of-hand, we need Lance back ASAP.
Your perspective on the trade is appreciated but your perspective on the person is unnecessary. Make game tape of a few of your momentum trades and then you can demonstrate exactly what uou are saying and offer ‘consistent’ advice. I mean we all know that every trade and every trader are all the same right?
@@strobe9 I'm aware every trader is different, that's why I made it very clear above that it's important to distinguish between a scalp trade vs. a momentum trade. A scalp should be traded like a scalp; a momentum trade should be traded like a momentum trade. This is not new information, SMB frequently says in their videos that traders should know exactly what trade they are making (and be able to distinguish as such). There's no doubt I 100% agree with that, which is the point I was trying to make in the first part of my comment. I want to clarify my intention of the second part of my comment - it was not to provide my perspective on the person but rather address the *feedback given* by the person. I apologize in advance if it appears harsh to some people, but feedback on feedback is just as important as feedback itself. I have been trading for several years now and occasionally watch these videos for different perspectives (because I believe that you can never stop learning even if you think you know everything, there is always something new to learn each day). I personally making a living trading market stocks/ETFs (I primarily trade select ETFs & mega/large caps i.e. SPY, TSLA, NVDA, AMD, etc.). Often I trade the same tickers as the ones discussed in the videos, which is the reason I am able to spot consistencies/inconsistencies in the select tickers that I trade all the time (and thus feedback on such tickers). I presume (from the comments section of most videos) that a majority of the people watching these videos are newer traders who are just getting started in trading or in some beginner stage of their trading. I know how detrimental it can be to traders who are new to trading (or even developing traders like the one in the video for that matter) to get contradictory advice where sometimes you are told one thing yet other times you are told another thing despite the circumstances being identical. As a new trader, how are you to know what advice to listen to? There is nothing more harmful to new/developing traders than being told inconsistent information and not knowing what to follow; this leads to hesitation and second-guessing later on (or even worse losing money on trades). I don't mind the person giving the feedback, but it is definitely troublesome the type of inconsistent feedback the person gives. Just watch the previous videos and you will know exactly what I mean. That is all :)
@@peterhernandez1104 Bro those are different traders, I agree with you, but I agree with Smb as well we should separate this trades.Momentum scapls and intraday trade.
He was risking less than you would, was probably a 3R setup minimum. Scalps have quick invalidation rules, that's what they cover in the foundation anyhow. 5R is what they're looking for, it's touched on multiples times in videos
Should we be differentiating morning and afternoons like we would premarket and after market when setting support levels? Or is it just specific to Day 2 plays?
Having watched HUNDREDS of hours of tape and videos ON tape reading, this analysis AND play is one of the best and clearest I’ve ever seen. SAVED.
I enjoyed the thought process behind his entry on 97.50, and comparing it to how I would've justified my entry at that level. There are so many different ways to trade that opening momentum and seeing this added value to my playbook. 👍
Great momo trade with tape reading. I really like the way he marked those levels for afternoon low, high.... Awesome video again, Thank you
Well done Caleb n Jeff. Great execution and discipline Caleb and great objective review n commentary Jeff. Thanks. Kirby
thx Kirby!
@@smbcapital Nice presentation and well done.
feels good when you take the same trades the professionals take lol. great video
thx! nice trade!
@@smbcapital like the fact you guys type back 📈🐅
I love how Jeff really tried to drive home a couple key points.
It's a momentum trade. you don't need to predict every price level. have your stop. have a target. and react to the tape. Take what the market is giving you and get out. In a high momentum trade like this, Tape is where you can see the shifts happening.
If you're trading momentum, slowing momentum IS your main indicator here. Not just price levels.
Great job driving home the point that you this is a momentum scalp. Get in. Get out. Take it. It doesn't matter if it keeps going later or flushes. You got your slice and onto the next one.
Thanks for these tape trade videos. Well done!
you are welcome Tom!
I love the simplicity of this trade plus your early in I'm already thinking "whats my next set up" I would love to see if there was any further continuation from where you took profits.
Wow, what great material to study. Thank you for sharing.
Great insight on how to think about momo Jeff.
Thanks!
Noticed this this morning with aapl. Expected at least a little upside to it and the pops were quick and followed by quicker sell offs. I made a nice profit but thought to myself, this is where reading the tape would be interesting I suppose, on those really fast pops
maybe slightly similar to AAPLs move but the AMD move was much more dramatic with higher volume
If anything, this trade was a small scalp on a breakout, and doesn't deserve to be called a momentum trade. One major problem with the execution of this "momentum trade" was using the tape to define your exit. There was absolutely no reason to exit this trade if it was truly a momentum trade, and part of the reason for the poor execution was because the trader here had no exit strategy going into the trade. You should know before even entering a momentum trade what levels you will take profits at as well as adjusting your stop accordingly, rather than "feeling out" that information from the tape. The problem with relying on the tape for exits on a momentum trade is that you get faked out on trivial pullbacks when you should still be holding. Despite the tape slowing, the trend NEVER changed. If it was a scalp then there's absolutely nothing wrong with that, but not on momentum trades especially when there is literally NO CHANGE in trend. Just take a look yourself at AMD on 4Aug22; the trend never changes and the momentum continues to hold up for almost the ENTIRE day. Taking exits when it is not even necessary leads to overtrading, not to mention looking for later entries completely ruins your RR. If you couldn't even capture 1R (0.90/1.00) on a massive trend move, how do you expect to get more favorable RR on subsequent entries later in the day (especially as momentum will inevitably die down)?
I don't blame the trader since he is probably new to the firm, but it is a bit frustrating how Jeff inconsistently calls this out in some momentum trade reviews and not others. In this video, Jeff encourages just getting out of the trade and looking for another entry later on. In previous videos, Jeff criticizes newer traders for taking exits too early on similar or even more aggressive momentum trades. (Example: 13:31 "Now that's real acceleration right there, and so it's almost like, after that, that's like alright, that's pretty good, Ima take that." -- Do you see the huge problem with that?? Since when is that EVER a justification for taking an exit? There is literally no concern for following any sort of price level/area, no concern for support/resistance levels, and no concern for a predefined exit strategy. This is only one moment in time in the video; there are countless other instances in this video and in previous videos where the inconsistencies become more and more ridiculous. One might argue that "the acceleration was so aggressive" and that "this time is different", but (1) there was no clear exit strategy in place and no rules were followed aside from "it was a fast move so I don't want to be in the trade anymore", and (2) traders in previous videos have traded small/micro caps with even LARGER moves than large cap stocks like AMD and have been criticized for exiting too early, so what is the reason for exiting this time? The hypocrisy is unreal in this one.)
I left a comment on a previous video a while ago about Jeff's inconsistencies which was shrugged off, and this is exactly what I'm talking about. I am starting to believe Jeff doesn't know what he's talking about and only says whatever happens to be on his mind at the time for the sake of providing feedback, even when he clearly has a pattern of being inconsistent. Anyone else notice this too? It's starting to get more and more out-of-hand, we need Lance back ASAP.
Yes but you used the word subsequent out of context.
well, I guess you're missing the point here
-I think this video is more an example of a 'momo scalp' trade, other than intraday swing trade
(which could indeed had been taken here, but that was not the point)
-as I noticed, SMB videos often focus on some narrow point, in order to make it easier to explain
(they didnt even go into trading fundamentals or TA of the trade here, as it wasnt necessary to the purpose)
-in other situation and in general this exit would be appropriate:
as Jeff said, you could do this trade in rnd situations throughout the day, and even take a short there, in other setups
so I think you are taking it too literally and overreacting a bit :)
I dont think there is smth wrong with Jeff, he doesnt have to go through every nuance of this setup in a 20 mins video
@@sergeystankov3068 Exactly that's the point. We should separate this trades one from another.. My approach of this could be 2-3 difrent trades. Let's say few momentum scalps and in same time with intraday separetet position 2 in one.
I appreciate Holden's analysis
Great video, Thanks Caleb and Jeff. One question, why not think about going short if it had broken and held prior afternoon level of 97? Caleb mentioned he will not take the trade in this case.
Awesome work!!!! 📼
Great video. Why not enter at back thru open at 98? Or as it pulls away from... after holding 97.50?
READING THE TAPE WOOOOOOOOO
I think the better entry would have been right after seeing the momentum push back up above 97.50 support and risk LOD.
What is the expected win rate on this trade? I mean you are risking 1R to make less than 1R and you are happy with it. I wouldn't have taken profit until just shy of 99.50 (half position) if using your stop and I would have held the rest all the way back to my stop for a break-even trade or until a higher low was broken...looks like my plan would have taken profits and closed the trade on the second half of the position at $103.34 ish on the 12:40 pm candle. How wrong is that? I only win about 40% of my trades. Do you take profits early just to reduce exposure time in the market or to capitalize on other opportunities? When I get in a winning trade my thoughts are to squeeze it until the trend changes as its easier to make money on a winning trade than it is to find another winning setup. But this doesn't seem to be at all what the pros do. Why?
I agree with you, there are a lot of inconsistencies in this video, and they definitely exited way too early especially considering the trend never changed and the momentum continues to hold up for almost the ENTIRE day. Taking exits when it is not even necessary leads to overtrading, not to mention looking for later entries completely ruins your RR. Check my comment I left above:
-----
If anything, this trade was a small scalp on a breakout, and doesn't deserve to be called a momentum trade. One major problem with the execution of this "momentum trade" was using the tape to define your exit. There was absolutely no reason to exit this trade if it was truly a momentum trade, and part of the reason for the poor execution was because the trader here had no exit strategy going into the trade. You should know before even entering a momentum trade what levels you will take profits at as well as adjusting your stop accordingly, rather than "feeling out" that information from the tape. The problem with relying on the tape for exits on a momentum trade is that you get faked out on trivial pullbacks when you should still be holding. Despite the tape slowing, the trend NEVER changed. If it was a scalp then there's absolutely nothing wrong with that, but not on momentum trades especially when there is literally NO CHANGE in trend. Just take a look yourself at AMD on 4Aug22; the trend never changes and the momentum continues to hold up for almost the ENTIRE day. Taking exits when it is not even necessary leads to overtrading, not to mention looking for later entries completely ruins your RR. If you couldn't even capture 1R (0.90/1.00) on a massive trend move, how do you expect to get more favorable RR on subsequent entries later in the day (especially as momentum will inevitably die down)?
I don't blame the trader since he is probably new to the firm, but it is a bit frustrating how Jeff inconsistently calls this out in some momentum trade reviews and not others. In this video, Jeff encourages just getting out of the trade and looking for another entry later on. In previous videos, Jeff criticizes newer traders for taking exits too early on similar or even more aggressive momentum trades. (Example: 13:31 "Now that's real acceleration right there, and so it's almost like, after that, that's like alright, that's pretty good, Ima take that." -- Do you see the huge problem with that?? Since when is that EVER a justification for taking an exit? There is literally no concern for following any sort of price level/area, no concern for support/resistance levels, and no concern for a predefined exit strategy. This is only one moment in time in the video; there are countless other instances in this video and in previous videos where the inconsistencies become more and more ridiculous. One might argue that "the acceleration was so aggressive" and that "this time is different", but (1) there was no clear exit strategy in place and no rules were followed aside from "it was a fast move so I don't want to be in the trade anymore", and (2) traders in previous videos have traded small/micro caps with even LARGER moves than large cap stocks like AMD and have been criticized for exiting too early, so what is the reason for exiting this time? The hypocrisy is unreal in this one.)
I left a comment on a previous video a while ago about Jeff's inconsistencies which was shrugged off, and this is exactly what I'm talking about. I am starting to believe Jeff doesn't know what he's talking about and only says whatever happens to be on his mind at the time for the sake of providing feedback, even when he clearly has a pattern of being inconsistent. Anyone else notice this too? It's starting to get more and more out-of-hand, we need Lance back ASAP.
Your perspective on the trade is appreciated but your perspective on the person is unnecessary.
Make game tape of a few of your momentum trades and then you can demonstrate exactly what uou are saying and offer ‘consistent’ advice. I mean we all know that every trade and every trader are all the same right?
@@strobe9 I'm aware every trader is different, that's why I made it very clear above that it's important to distinguish between a scalp trade vs. a momentum trade. A scalp should be traded like a scalp; a momentum trade should be traded like a momentum trade. This is not new information, SMB frequently says in their videos that traders should know exactly what trade they are making (and be able to distinguish as such). There's no doubt I 100% agree with that, which is the point I was trying to make in the first part of my comment.
I want to clarify my intention of the second part of my comment - it was not to provide my perspective on the person but rather address the *feedback given* by the person. I apologize in advance if it appears harsh to some people, but feedback on feedback is just as important as feedback itself. I have been trading for several years now and occasionally watch these videos for different perspectives (because I believe that you can never stop learning even if you think you know everything, there is always something new to learn each day). I personally making a living trading market stocks/ETFs (I primarily trade select ETFs & mega/large caps i.e. SPY, TSLA, NVDA, AMD, etc.). Often I trade the same tickers as the ones discussed in the videos, which is the reason I am able to spot consistencies/inconsistencies in the select tickers that I trade all the time (and thus feedback on such tickers). I presume (from the comments section of most videos) that a majority of the people watching these videos are newer traders who are just getting started in trading or in some beginner stage of their trading. I know how detrimental it can be to traders who are new to trading (or even developing traders like the one in the video for that matter) to get contradictory advice where sometimes you are told one thing yet other times you are told another thing despite the circumstances being identical. As a new trader, how are you to know what advice to listen to? There is nothing more harmful to new/developing traders than being told inconsistent information and not knowing what to follow; this leads to hesitation and second-guessing later on (or even worse losing money on trades). I don't mind the person giving the feedback, but it is definitely troublesome the type of inconsistent feedback the person gives. Just watch the previous videos and you will know exactly what I mean. That is all :)
@@peterhernandez1104 Bro those are different traders, I agree with you, but I agree with Smb as well we should separate this trades.Momentum scapls and intraday trade.
He was risking less than you would, was probably a 3R setup minimum. Scalps have quick invalidation rules, that's what they cover in the foundation anyhow. 5R is what they're looking for, it's touched on multiples times in videos
how do you have those labels on the chart where shows the Daily range, ATR, Hi/Lo of the day?
Thoughts on ICT from an institution?
For tape reading should I focus more on level 2 or times and sales?
Both, but you're watching the L2 primarily, you just need to make sure orders are printing too though. So it's a combination of both essentially
you guys should change your recording software to OBS.
Why does he say it's a weird tape when it's just a level II tape on DAS trader...Looks normal to me.
Should we be differentiating morning and afternoons like we would premarket and after market when setting support levels? Or is it just specific to Day 2 plays?
a day 2 play likely will respect afternoon levels fairly well so the afternoon level on a day 1 is definitely helpful for a day 2 play
No reason to exit a breakout that is clearly working with at a RR
its just following NQ... just trade NQ