Trading The MOO (Active Psychology Part 1)

Good morning everyone! I hope you are enjoying your day, and are gearing up for the MOO. Thank you so much for all the support and interaction on my previous article. That was my first Deep Indicators article where we talked about the Moving Averages and you got to see me take a trade.

You can read that here

Well, let's take another trade! I was not going to make an article today, but because of all the support from yesterday I thought that it would be nice to show you how I trade the open.

We don't have much time so let's take a look.

Spy is breaking down below yesterday's highs. I thought it we were seeing a inverse cup and handle on the day which I drew out and it is currently in motion.

Possible bull flag playing out on the 4 hour. These are rare. Right now I think we are seeing the retest candle.

I marked on the 4 hour two levels of a possible Retest and Rejection

The $520.47 level (which makes sense) and the $519.70 level.

This is actually my second time writing this article. I did not like how I wrote it the first time, my thoughts were all over the place. Trading and writing an article at the same time lol.

Here are my trading ideas. We short at the top of the handle for the inverse cup and handle then get long around the 4 hour retest level.

There is liquidity to both sides, equidistant from eachother.

Moving straight down for now

Tesla is trying to ramp up, APPL moving down, GOOG moving down, META moving up.

Not in a position yet

Wicked off yesterday's highs so far

Buyers entering, the candle turned green. Might see a move upside now.

The spy looking like it wants to get to VWAP

In our shorts, targeting the 4 hour down there at $520 for now

VWAP rejection for now

Everything is moving up, being careful here, I might cut it.

Still holding

I'm not greedy. I think i'll trake profit here.

Need to see some big players head to the downside. Tesla still trying, APPL still trying, GOOG coming down, META still trying.

If we reject off yesterday's highs I am going to cut it

Still holding

Sellers sweeping. I think this is good enough for me. We need to close below yesterday's highs on the 5 minute for more downside.

Buyers showing strength.

Cut the position for $3,000. I am totally cool with this trade!

Recap:

1. We saw the inverse cup and handle

2. We charted yesterday's highs

3. Took a look at what the 4 hour was telling me

4. We knew that they say "all roads lead back to VWAP" (no one says this btw lol but its true)

5. Took the trade at VWAP

6. Took a look at our MooMoo charts to see what the big players are doing

Setup here:

7. Remained calm, remembered our strategy

8. Did not get consumed by greed

9. We remembered to breathe, and trust ourselves

10. Most importantly, we took profit.

I still think there is room to go short here, but I don't want to give anything back to Wall Street.

Now it's time to walk away! A great plan, a solid mind, and strong strategy.

The market could move further down, and we "could have" made more. But it's not about that. If you are trading, get rid of the "could have", "would have", "should have"'s. It's either you enter a trade, or not. Stick to the plan! Do Less Until It's Time To Do More.

Now the spy is chopping around. No reason to take another trade, and absolutely 0 reason to give back to a hedge fund managers Aspen vacation.

The Spy is still trying to ramp up, but finding difficulty. However, it is now above VWAP. Still no reason to get long or short here eventhough it looks like we might have bottomed out.

Possible bear flag on the 1 hour.

As tempting as it is to get short here, I am still not going to take the trade. Why?

1. I am in profit

2. I already told myself I am done trading today

3. The market is too choppy.

4. There is not a good enough setup at this level. If I were to take another trade, it would be at the 4 hour level we found at the $520.47.

WOW look at that candle. There must have been news or something.

Yes

No

Doesn't matter if it could have been more money.

I like money just as much as the next guy, but the point is to be consistant

Taking trades when there's a setup. Not just taking a trade off of "I should probably get long or short here".

Be grateful. You should always be grateful. Be grateful for the opportinity to trade, the lessons you learn while trading, and the fact you can even trade at all. Some don't have the luxaries that you have. Always be grateful for what you have. Never take it for granted. I made that mistake so many times in the market, and in life. I owe it to myself to be grateful, and remain positive.

You see? As I was writing, the candle completely reversed. This is really bullish. Am I going to trade? Nope. Will I miss out on some stuff? Yep.

A lot of people don't understand that.

Yes I could have gotten long, but nothing told me to get long other than the very bullish sweep candle.

We took our trade, and are happy with it. That's all you can ask for.

My name is Alkaline, and my goal is to be a resource for others with their venture into the stock market. Thank you for reading, and all of the support. I hope you all have a great day in the market

At the time of writing, the SPY is around $521.360 and Bitcoin is at $70,198