Stop Trading In The WRONG DIRECTION With This Simple Rule

[@StockChartsTV]

👀 See what better financial charting can do for you! Start your FREE 1-month trial today at stockcharts.com 👍🏻 If you enjoyed this video be sure to hit the THUMBS UP ✅ If you found value, consider SUBSCRIBING to our channel and ring the bell so you never miss a new video! Subscribe Here: tinyurl.com/wvet7qj

[@anantdivekar]

I use Heiken ashi to ride a trade . When the trend starts weakening , the HA candles shrink and start becoming smaller and rangebound which is an early warning . Then on first red candle sell . That way there is clear visual indication

[@James-100]

Thanks for the video, Grayson. Hey, a few others have mentioned this, but since there were several red candles along the journey to 40%, and you didn’t sell, what other rules, indicators, or strategies did you use in combination with this rule to keep you in the trade?

[@jimknarr]

Excellent question! I see he liked your question but didn't answer. LOL

[@James-100]

@@jimknarr Yeah, that's puzzling, but I do appreciate the info, incomplete as it was.

[@TheMaggsy1]

Do you have any stats to back this up though. Have you done any research?

[@natalee5588]

Do you only use a horizontal line as a trigger for your trade? What about breaking above a downtrend line or resuming an uptrend out of a bull flag?

[@sjaw100]

There were at least 2 red days before you finally get out. How do you know which is the real trigger to sell? Any other confirmation signals?

[@boccobadz]

Exactly, this selling rule is kinda bad one - it's either too subjective (like we saw here, position wasn't closed even though there were red days) or it will stop you out really early if you automate it. He mentioned adjusting his SL during run-up, so, this rule on its own is meaningless if you don't have a process of exiting positions in place already.

[@jimknarr]

Great question! I would like to know as well. I see he liked your question, but no answer. No answer kind of bothers me.

[@madeleinewhite5619]

Greatly appreciate your sharing this tip with us. Definitely will use it for my trades. Is this only one of several conditions you use to enter & exit a trade (besides targets & stops)? More tips like this please to make us better at investing successfully. You do a great service educating us.

[@johnpejnovich7722]

Interesting take on the chart analysis. Mr.Grayson you mentioned that you only buy & sell on up & down days respectively. Which I'm familiar with. For example, do you buy a stock if that stock is on an UP Day or the market that it is in an UP Day overall?

[@Howard-l8y]

how do I avoid the pre after mkt doom I had position sweet positions and wake even if stops loss limit buy sell.?

[@titusrider7948]

Beautiful trade on EME 😊 Are you buying the equity or the options? Also when you say "Up day" are you referring to the underlying only or the markets as a whole?

[@graysonroze]

Underlying! Focused on that specific symbol for this rule.

[@gigrockband]

Terrific video. Thx.

[@pmks4]

Thanks for reminding us of the simple rules that make us all better traders. I've heard trade in the direction of the trend many times before, but I have not been religious about following that with mixed results. I am going to incorporate this into my trading.

[@steveaytch6022]

Great video! What parameters would have put EME on your Watch/Focus List?

[@jimknarr]

Great question!

[@graysonroze]

Awesome question - I like to scan for new highs across multiple timeframes (3-month, 6-month, 9-month, 52-week and all-time highs). Here's a recent episode that touches on that very topic: kzbin.info/www/bejne/fpbSaIqvaNV-idksi=X3aWv3_N4yPEu8zD

[@steveaytch6022]

@@graysonroze Thank you so much, that helps me greatly. much appreciated.

[@TheMaggsy1]

What about if it suddenly has a big down day and you lose all your small up days

[@sptrsttradr4918]

I usually like and agree with your analysis, but not this time. Entry points matter and even in the strongest uptrends price tends to ride or pull back to a simple moving average or VWAP. Entering at those support points sets you up for the resumption of trend or a clear place to stop out. If you buy when it's extended, you have a greater chance of being at a loss right away and maybe getting shaken out of the trade.

[@FrozenDoberman]

The March 11, 2024 EME exit would in hindsight worked out more efficiently as a partial sell reduce trade. On that day all the key moving averages were still pointed up. Price was still above a rising 10-day EMA line. Granted, EME could fall hard any day now, but at least so far it is still above a rising 10-day EMA line. On a monthly chart EME looks extended. Mean regression will eventually bring EME down to the 5 EME line on the monthly chart.

[@larryhart722]

One question was not answered. There were several red candles after the breakout and prior to the ultimate exit. If it's a "rule" and not a "guideline", why was the rule not followed => exit?

[@James-100]

I was going to ask the same question. Hopefully Grayson clarifies this rule.

[@graysonroze]

Great question. On the sell side, the rules comes into play once I've started looking to get out of the trade. In this case, EME ran higher and had a solid gain that I was looking to book, but the "rule" kept me in the trade for longer because the stock was only printing up days. I have strict stop setting rules in place and always make sure to adjust those higher on the way up - risk management is job #1! - but in a case like EME where I start looking to sell "manually" (instead of waiting for stops to be hit) the rule comes into play and can be a helpful gain extender. EME is a prime example.

[@James-100]

@@graysonroze Thanks Grayson.

[@vivekdabholkar5965]

Why didn't you post video on EME as it was happening and not much after the fact?

[@ekdman]

Do you wait until the end of the day to buy or sell?

[@jimknarr]

Excellent question!!! I think I can answer this one. On daily charts, wait to make sure the breakout sticks by the EOD before buying. On weekly charts, by the EOW before buying, etc.

[@graysonroze]

I typically like to trade within the last 30 minutes of the session, but it depends on the day and the trade in front of me.

[@superalexandre8450]

What if Up day turns into down day and vv - in todays manipulated market that happens daily

[@titusrider7948]

Hey Grason, a while back you did a segment on organizing Sharp Charts charts using symbols like !, #, *... to prioritize. What is that video name ?

[@StockChartsTV]

Is this the one you're looking for? kzbin.info/www/bejne/pZzYdJVmjpxgq5Y

[@titusrider7948]

@@StockChartsTV Yes, thank you very much! I'm having an OCD moment 😅 Is there an article that lists all the symbols, *,-,=,... and their hierarchy ?

[@jimknarr]

@@titusrider7948 It's based on ASCII code. The lower the ASCII code number related to a symbol, the higher it is in the hierarchy.

[@StockChartsTV]

For SharpCharts ChartLists it's *, numbers, , A-Z, ^, a-z, ~ For ACP ChartLists it's ^, -, ., *, /, +, , ~, numbers, A-Z (not case sensitive) Hope that helps!

[@tabatha2030]

SO I sold NVDA on a down day two red candles in a row Jan. 1 and 2.

[@fishingwithkingtietnhon4877]

great video

[@johnheflebower3478]

HI, I'd love to see more information on candlesticks and what they mean. JH

[@mason5540]

Good content but the video could have easily been cut in half

[@Litehart19]

Me thinks this could have been a 3-minute video. Did he ever explain what criteria he uses to determine an up or down day?

[@graysonroze]

It’s simple: Up day - “is the stock trading higher today” Down day - “is the stock trading lower today”

[@Litehart19]

@@graysonroze Higher or lower than what? Are you saying an up day is when price is higher than the prior day's HIGH (and vice versa)? Or price is higher than its open today?

[@graysonroze]

Prior day’s close. Another way to think of it (visually) - is it a black candle or a red candle today?

[@jimknarr]

@@graysonroze Or a hollow or solid candle like you said in the video.

[@orgorg239]

I don't agree completely. You have to buy low and sell high or you lose money on the trade.

[@graysonroze]

Or buy high and sell higher! Catching breakouts and riding trends is a higher-probability way to find winning trades.

[@danyelcarinzia5573]

Wasted 20:33 that could have been condensed into 0:33,trade in the right direction, the end!

[@tomvanleeuwen3914]

Way too generic....

[@yorammm5549]

Why is the quality of your videos poor? The charts should be seen in high quality Because we are in 2024 and not 2006 I want to tell you that it is difficult to watch the chart when the quality is grainy. improve it please It's like that with all the presenters

[@StockChartsTV]

Hi! We upload our videos in 1080p, they should not look grainy on your screen. Please double check the video player quality settings (little gear icon in the lower right of the player), KZbin sometimes sets it at a lower quality. Hope that helps!

[@raulakh123]

that is a really informative, it happens to me most of the time haha. , In fact losing trades teach you better lessons for future, will you like to share one