Further thoughts on this strat for now named: "Intraday Level Play".
It appears levels (active limit orders) show themselves in pre-session. This isn't an accident, its a position being set up.
The whale builds their position somewhere before and during false breakout of the established pre-session low (low is there because thats where their limit order is). They are likely building their position in pre-session. Clearly this is only done on biggest of instruments.
The whale uses F.B. (false breakout) to collect last bit of stock they need and immediately accelerate it up. Acceleration always starts after initial F.B. Anything after the initial is defended.
The instrument is then accelerated (faded up as Cramer puts it), somewhere during this process as more traders join in an attempt to profit, whale dumps to them.
So basically:
- Level is established based on their limit for the day, which is put in pre-market.
- They will let instrument run up (or maybe they run it up) in the morning, and then descend back to that limit order of theirs (for the day), and then you'll either see a bounce or a F.B. F.B will also reflect slight increase in volume (it can be 2 1min candles).
- Then we see subsequent tests against their initial limit, which they defend, multiple times if needed.
- Then they accelerate it up as there are no sellers left.
- They exit into the frenzy.
- They do same thing again the next day.
Tips:
Stops (Rs) can be tiny. Each move is 10x+ and this strategy should revolve around expecting those kinds of runs. Its fine to move stop into loss-less position, but remember they will likely test the level again.
I imagine once I get one full take of this, I'll relax and leave initial Stop alone.
Today I missed 2 of these trades because of aggressive stop moving into loss-less position. 2 5x+ trades.
This is the lowest risk and the highest profit trade setup I've found to date. Pre-market is key.
