Scalping Strategy with Flow Data (Currently Testing)

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MasterSteve

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I’ll answer both of these questions later today.
 
MBF

MBF

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@Bhai, I am quite new too, a year and a half, but this is how I analyze. there are ways to figure this out. The way I use Steve's order flow is that some "thing" will happen USUALLY, not always. The stock may tank or rip OR it may not do anything much but maybe in the following days it will, so I still put it on a watch if it's in my affordability perimeters.
So let's look at mondays list. My analysis is talked out below the photo.


JMP - Yesterday's high and premarket activity seemed positive and perhaps some optimistic accumulation from post and premarket but very short-lived. Then the makers came in and dumped their shares. Makers cannot possibly get rid of ALL their shares in a matter of minutes, it takes a while for them to unload, so usually, there is a brief breather where scalpers come in, and raise it up while makers are still unloading. Some scalpers wait for that quick pop knowing that and also buy shorts WITH the makers on the brief rise up, which causes the stock to tank even more. Then you have to use your eyeballs and watch for the area where the makers are done for the day, until the last hours of trading, where they probably unload more. On days like these, the stock should close lower than the day before. It can very often take makers days for them to get out completely if they are adamant they no longer want the stock, some just want less in their portfolios for whatever reason. That's how I saw this play.
 
MBF

MBF

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@Bhai
BA
BA was a bit easier because it could not get up to premarket highs and yesterdays high was WAAAAy up there at the top of the chart. The day before it had a lower close and could not maintain $333.5. It also traded with conviction below yesterday low. Bad sign. On this day Monday, it also closed lower so that would be a good swing sign that the following day would also go lower. However, I would watch for the morning decision carefully IF I swung this, which at this point in my trading, I would not. But say I did, the following day it could not make it over the close which means my swing would have been okay. I would have gotten out at the cross of my LBR and the 9 EMA.
 
MBF

MBF

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@Bhai
CRM
CRM was almost the same play as BA, the only difference is that I would not consider it a swing play and so I would have stayed out with the exception of scalping maybe throughout the day. The reason, BA would have seemed like a good swing based on the daily candle that was forming, a big red candle with hardly a bottom wick to be seen, whereas CRM was already forming a big bottom wick early in the day, meaning it found perhaps short term support. Notice the break early on in CRM of yesterday's close. A good indication of makers unloading. Now I just find an exit.
 
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MasterSteve

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Watchlist for Thursday 1/2/2020

BABA
BA
TGT
GS
 
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MasterSteve

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Watchlist for Friday 1/3/2020

AMZN
DIS
BA
BABA
TSLA
 
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MasterSteve

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Newbie here - is it possible to post the option flow or atleast the expected direction.
what does the result look like ? i saw the post getting updated in start for couple of days after that its only watchlist.
We tried to pick the expected direction the day before but had mixed results. We found that the best indication of direction typically comes the day of a scalp.
I was initially keeping track of how effective the list was, but after I found that the list was consistently 75% or above accurate in finding good movers I stopped noting the percentages. I intended to just release a watch list. I wanted to alert interesting positions so if they met someone's criteria they could enter and make profits.
 
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@MasterSteve , has your daily watchlist anything to do with unusual options activity or dark pool buy/sell activities?
Yes it does. I like to limit the watchlist to stocks with a significant amount of option activity the day before. That tends to suggest playable movement the day of.
 
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MasterSteve

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Watchlist for Wednesday 1/8/2020

SQ
GS
BABA
SHOP
FB
AMZN
COST
UPS
SBUX
 
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MasterSteve

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Watchlist for Friday 1/10/2020

AMD
BABA
BA
NVDA
V
UPS
TGT
 

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