Key Charting Techniques (iCarlyCae)

Sep 18, 2024

Lecture Notes: iCarly K Charting Techniques

Introduction

  • Presenter: iCarly K
  • Focus: Charting techniques for the Strat trading strategy
  • Key Concepts: Inside candle levels, 2-2 reversals, 312 and 212 setups

Inside Candle Analysis

  • Ticker Example: META
  • Inside Candle: Represents indecision
    • Market will eventually break to the upside or downside
  • Action Steps:
    • Mark out the upside (set target levels)
    • Mark out the downside (set target levels)
    • Use a green line to mark the upside breakout level
    • Example breakout level: 282.98
  • Considerations:
    • Do not enter calls immediately; conduct multiple time frame analysis
    • Targets are anticipated, not guaranteed
  • Entry for Calls/Puts:
    • No directional bias; prepare for both directions

Mapping Targets

  • Upside Targets: Look for the high of the candle before the inside candle
  • Downside Targets: Use the bottoms of the candles
  • Example Entry Levels:
    • Upside: Break above 282.98
    • Downside: Break below 279

Strike Price and Expiry

  • Investigate Average True Range & Daily Range for selecting strike prices
  • Example Strike Prices: 285 or 290 (riskier)
  • Example Expiry: June 23rd

2-2 Reversal

  • Ticker Example: Oracle
  • 2 Up, 2 Down: Compare current candle to previous
    • Example entry to downside marked by low of current candle
    • Find signals across different time frames if needed

Using Rev Strat

  • Rev Strat Example: 2-1-2 setup
  • Targets:
    • High of the reversal candle
    • Previous candle targets after the reversal
  • Gaps: Account for gaps in blocks of candles when mapping targets

Candle Psychology

  • Inside Candle: Trades sideways; breakout needed
  • Two Candle:
    • Two Up: Breaks high of previous candle
    • Two Down: Breaks low of previous candle
  • Three Candle: Outside candle, one bar reversal
  • Trading Threes: Do not trade off threes directly; use lower time frame signals

Additional Tips

  • Strat Cheat Sheet: Download and use for reference
  • Market Open: Avoid immediate trades at market open due to volatility
    • Allow 15-30 minutes post-open for clarity

Conclusion

  • Call to Action: Like, comment, and subscribe for more content
  • Closing: Thank you message

These notes cover the key aspects of the presentation on the Strat trading strategy, focusing on inside candles, 2-2 reversals, and other setups. Utilize these notes to understand trading tactics, entry and exit strategies, and market analysis.