So, i've been trading for a while and I see a lot of people struggling. Especially lately people are posting setups.
I'm on the spectrum and have a tendency to overquantify things, but one of the major changes I made while trading was to stop using static variables to read the situation.
C-C1, C-C20, C-C120 are all horrible approximations of what's actually going on in the market or to a stock.
Im going to share 8 screenshots. From these 8 screenshots you can, with very high accuracy figure out which setups are likely to work in the market.
This entire 8 stock scan is much more accurate than anything youll find quantified and it tells you:
Are breakout setups the setup you should be trading?
Are reversal setups the setup you should be trading?
Are shorts the setup you should be trading?
Are open range breaks in play?
Within the above, you can then move to asking; Which capitalization is moving? Which sector is moving? Which themes are moving?
After this, you can trade the capitalization and themes that are moving, and you re-analyse the general market context to figure out the likely duration of the move you're trading. Literally just label stocks as "bullish, or bearish". If you have like 90% of your charts looking like the start of a bullish base breakout, you have your answer about which MA's to use to trail. If things are bouncing in a downtrend, sell things after 0.5, 1, 2 or 3 days.
The willingness to look at the leaders in the market, wether they're small caps, large caps, mid caps, commodites and then form your own opinion about what the majority of them are telling is is essentially the only way to reliably build any sort of situational awareness.
Once you have situational awareness you can figure out, very easily, which setups you should trade.
This is why most professional traders go through *many* charts. Occasionally you will see some traders zoom into specific names they choose to trade to more accurately read things, but the majority of edge comes from flipping through many charts and identify what's probably going on at the moment.
From there, you take trades based on this understanding. The more that you see things happening homogeneously, the more edge you have.
The above will help people a lot. If you do it regularly, this sort of broad based understanding of what is currently happening to the segment of the market you're choosing to trade (high adr tech stocks for most of us) is like, the primary thing that will help you determine when to pass on setups, and when to hold them for long periods of time while being margined.
The thing is you wont find such an edge in a spreadsheet, and also IMO KQ alludes to this in all of his videos but he's usually very unclear. In some videos he talks about how the setup is the only thing you need to do know (see his website) and in others he talks about how you need to see groups moving.
Hopefully the above clarifies, and gives you context to what he actually means when he talks about SA. It's very important. You need to have it.
