Day Trading Education & Training - How to Use Tape Reading in a Weak Market Environment

SMB Workshop (free) https://bit.ly/3G0E7Zs #smbcapital #stockmarket #daytrading SHOW NOTES Highlight of tape during a different market environment in which you are trading the tape ● Strong Market Environment vs Weak Market Environment ○ Strong Market Environment ■ Clear picture in market to force stock in one direction ■ Clear theme in market driving a specific sector ■ Sentiment is decided ■ Clear levels and setups identified ○ Weak Market Environment ■ No clear direction with large amount of volatility ■ Choppy setups making moves from midrange and spraying key levels and reversing ■ Slower starts to breakouts ● DWAC 1/11/22 ○ What does the beginning of the move look like in a weaker market? ■ Saw 70k and 100k volume bars, 200k from previous day (Signs that someone crucial is trying to get in) ■ Want to see tape speed up and spread become tighter ■ Breakout of $60 (Don’t want to see it hang around these prices with exponential volume coming in) ■ Capture P&L in a weaker market ● NKLA 1/13/22 ○ Short Squeeze Trade ■ Looking for reactions around $11.50-$12 ■ Looking for 700k volume bar and saw a 1.5m volume bar (Double opening volume) ■ Noticed on tape small ticks up were getting sent back down (Not a good sign) ■ In a stronger market there should be follow through after seeing exponential volume bars ■ Tape starting to slow back down ● F 1/10/22 ○ Playing off intraday level ■ Breakdown of $24 with tape acceleration (Looking for pop back in) ■ Looks for the retest of $24 with a failure and quick move down ■ In weaker environment you should see cleaner action to the downside (Sell first, think later) *SMB Disclosures* https://www.smbtraining.com/blog/smb-disclosures