Mean reversion trader here and Bella's riveting comment @ 12:05 holds so true. Especially trading under 2 yrs and just now getting focused on dialing in a solid technically based mean reversion strategy. Currently watching the /MES's rocket up 30 plus points and I am watching SMB videos through out the day and I was fighting the urge to get some of the long action and then 12:05 comes up in the SMB Video and I got chills and hair stood up on my arms...needless to say I put the "emotions" on ICE immediately and got back to watching and waiting form the turn. Thanks Bella...Much appreciated sir. :)
I've been waiting for this video! The mean reversion trade is my A+ setup especially high beta scalping with options. Trader did an excellent job managing risk and taking small paper cuts while waiting for the tape to turn. Usually in those moments I'm determining a strike price I am interested in and whether or not to go deeper ITM for a bit of protection. I do like short dated expirations bc if your tape reading skills are good and your fast with execution you can catch alot of buyers and sellers of contracts off guard and use the volatility now in your favor. Great presentation all the way around, this market has certainly changed and it's been a great learning experience to learn how to perform better in these different conditions. Bella also makes an excellent point about the Vix at the end! Absolutely great video!
@jay chris How much do you make from financial market in a month. I know it sounds odd but just curious because I have seen many people who are into it making thousands and millions.
Excellent presentation! I have been working on building a mean reversion play and found this very helpful in understanding some potential elements to use as a filter and as a setup checklist. Thank you
Information spot on. Involved regularly on an ASX stock recently that sells down. Suddenly & real hard, only to make another step down again. For those who jump in early significant points left on the table, or worse losses. Such an enjoyable trade and also a real test of your conviction as risk parameters likely tested.
GREAT clip! one of your best so far imo. Showing the thinking behind the setup and the actual tape action were so helpful. Now im waiting for the next company to F up and drop so i can mean reverse it like a boss 🙂
I thought of one more add to this trade. U = mean reversion trade, where U = selling pattern. 1. As pointed out by Mike, both the index and stock(s) are selling down aggressively and very unusually in terms of speed and volume. 2. The extreme volume is revealed at/near the bottom with a massive red candle and then begins to shrink. 3. The tape captures the increase in both the number and size of bids while offers reduce. 4. The stock starts moving back up as the sentiment breaks to favor a long trade. Note: This trade applies on the overbought (short) side but statistically I don't believe the market gets overbought with the same speed as it gets oversold so perhaps the trades are asymmetric..... Very cool trade, however, and much appreciated!! I am visually putting this into my hippocampus,
Very nice trade Gents. I saw these set up last week. Ill rewatch several times as this one is one of my favorites. Fast thinking but can be quite rewarding. Well articulated and great passion in this one. Thanks!
Alot of very useful information to observed in this trade.Great trade well done. Bring on the deep style pizza the more the better! and Wash it down with a Coke! Oh Yeah! 😄🍕🍕🍕
Great video as always. The mean reversion trades have started to work out for me pretty well over the past months. First I traded them on a daily time frame (NVDA, AMD, PFE, F) and now trading them more intraday as well. (NFLX, TSLA, PYPL,...) Would love to see more of those videos and when and why people get in and out. I am usually early and scale into the position. Cheers from Swizterland!
This is pretty random, but I just want to thank Mike B for the playbook, completely transformed my trading/life. We have to keep him protected at all costs 💯 🚀
It's funny: I started out very much as a trend trader, but after watching videos like these on mean reversion, it is quickly becoming my favorite trade. In and out quick. Usually great RR.
Are you watching the tape from the open to notice the selling exhaustion or do you have areas based on technicals/stats that it could potentially reverse? In the trade management (losses ) section, the first trade on Tesla was a loss as the trader tried to anticipate a bounce at 895, so what if there are multiple bounces before selling exhaustion similar to the 895 bounce?
There are both areas based on technicals and then we narrow in on tape reading at these levels. Levels can also be too far away from the mean that you recognize
Nice presentation, but I didn't understand the stats on ATR and trading range presented? Congratulations on your best day trading results. College student trading NFLX, and TSLA..
excellent video - when he took his profits, was he able to sell on the "ask"? or to assure order fill, does he sell at "mkt"? ....or on the bid.......?
When the trader shares the current stats for both tickets he mentions NFLX ATR is 1.4. Is atr being shown as a ratio and not as a dollar range? If so what are the inputs to said ratio?
Thanks for another quality video! SMB and scalping has been amazing for me. Which platform is that? proprietary? Looks like a blend of lightspeed/DAS. thanks!
When you see the change on the tape, how long does that change need to take place? Today at the close msft was a great example. I saw that the bids were getting soaked at $301 but I wasn't too sure how long I should wait.
@@mbellafiore19 Thanks Mike. I'll watch a few more times. too I am studying these clips closely. My apology for last week for imposing a longer time horizon perspective on the intraday trading time frames. That's where I came from, longer term trades. I am loving what you keep putting out and am learning a lot and remain very thankful for your education and seeing SMB pop up on my radar 2 or so years ago. I aim to learn and get very good at intraday trading. I am "emptying my cup" so to speak to not confuse it with longer term time frames. Today, I thought adding the onbalance volume and advance/decline indicators to charts to visually see the intraday moves and their relative weakness/strength. Thanks again. Kirby
i dont see the point of scalping...trading for nickelss and dimes...id rather trade 300 to 750 points..also you have to bat 1000 day in and day out..something retail traders cant do..i mean your risking what 1% for 8 points?...
Sometimes, the R:R can be very favorable when scalping, and can sometimes be compared to the R received when swing trading. In this instance you were able to risk a point to make 7-8 points, giving this trade a 7-8R. Its the equivalent to risking 5 points to make 40. To add onto that, some market environments are much better for move to move trading, rather than swing trading. Hope this helps
*4:14** **_Fascinating_** Connecticut Exposition Ends and Scalping Strategy Begins*
Mean reversion trader here and Bella's riveting comment @ 12:05 holds so true. Especially trading under 2 yrs and just now getting focused on dialing in a solid technically based mean reversion strategy. Currently watching the /MES's rocket up 30 plus points and I am watching SMB videos through out the day and I was fighting the urge to get some of the long action and then 12:05 comes up in the SMB Video and I got chills and hair stood up on my arms...needless to say I put the "emotions" on ICE immediately and got back to watching and waiting form the turn. Thanks Bella...Much appreciated sir. :)
I've been waiting for this video! The mean reversion trade is my A+ setup especially high beta scalping with options. Trader did an excellent job managing risk and taking small paper cuts while waiting for the tape to turn. Usually in those moments I'm determining a strike price I am interested in and whether or not to go deeper ITM for a bit of protection. I do like short dated expirations bc if your tape reading skills are good and your fast with execution you can catch alot of buyers and sellers of contracts off guard and use the volatility now in your favor. Great presentation all the way around, this market has certainly changed and it's been a great learning experience to learn how to perform better in these different conditions. Bella also makes an excellent point about the Vix at the end! Absolutely great video!
Thxs Mike. Glad we finally got to it for you. My best to your family and you.
@@mbellafiore19 thanks! Same to you and your family also.
Everytime you drop a video it’s always a blast..powerful,thorough and Clean keep It up
@jay chris
How much do you make from financial market in a month.
I know it sounds odd but just curious because I have seen many people who are into it making thousands and millions.
@jay chris
has there ever been losses since you started the financial market?
And what's your area if specialisation in the market? Thanks.
Wow! The amount of attention and work this guy puts in is unreal. This really shows how much work it takes to be successful.
Excellent presentation! I have been working on building a mean reversion play and found this very helpful in understanding some potential elements to use as a filter and as a setup checklist. Thank you
Good work by you
Great video explanation. Definitely noticed as well with volatility keeping plays small and giving some more room.
Yes good pick up Michael
Information spot on. Involved regularly on an ASX stock recently that sells down. Suddenly & real hard, only to make another step down again. For those who jump in early significant points left on the table, or worse losses. Such an enjoyable trade and also a real test of your conviction as risk parameters likely tested.
Great video as always. Wow grew up in Farmington Connecticut. Loved hearing that Mike. Small world.
GREAT clip! one of your best so far imo. Showing the thinking behind the setup and the actual tape action were so helpful. Now im waiting for the next company to F up and drop so i can mean reverse it like a boss 🙂
Thank you
I thought of one more add to this trade. U = mean reversion trade, where U = selling pattern. 1. As pointed out by Mike, both the index and stock(s) are selling down aggressively and very unusually in terms of speed and volume. 2. The extreme volume is revealed at/near the bottom with a massive red candle and then begins to shrink. 3. The tape captures the increase in both the number and size of bids while offers reduce. 4. The stock starts moving back up as the sentiment breaks to favor a long trade. Note: This trade applies on the overbought (short) side but statistically I don't believe the market gets overbought with the same speed as it gets oversold so perhaps the trades are asymmetric..... Very cool trade, however, and much appreciated!! I am visually putting this into my hippocampus,
Thank you for this video. Mr. Bellafiore, thank you for such class and eloquence presenting this great information!
Tom Demark’s indicators are fabulous for mean reversion, specifically TD sequential and TD lines
He is smart & lucky to get this education so young!
Bringing CT love from New Britain! ✌🏽 I just read The Playbook and I loved it. It gave me hope that a girl from NB can make it too. Thanks Mike
Very nice trade Gents. I saw these set up last week. Ill rewatch several times as this one is one of my favorites. Fast thinking but can be quite rewarding. Well articulated and great passion in this one. Thanks!
Thxs for the feedback. An important trade for one's PlayBook
@@mbellafiore19 Thanks Mike, I love the set up. I aim to get very good at it!! Have a nice sunday.
Alot of very useful information to observed in this trade.Great trade well done.
Bring on the deep style pizza the more the better! and Wash it down with a Coke!
Oh Yeah! 😄🍕🍕🍕
Thank you so much for these videos. I appreciate it.
Timely video SMB! Another in progress with F.
Another one SMB, great content as always, especially from developing traders. more more more ... thanks
You are welcome
Great video as always. The mean reversion trades have started to work out for me pretty well over the past months. First I traded them on a daily time frame (NVDA, AMD, PFE, F) and now trading them more intraday as well. (NFLX, TSLA, PYPL,...)
Would love to see more of those videos and when and why people get in and out. I am usually early and scale into the position.
Cheers from Swizterland!
Great video Bella! Thank you for the Playbook as well, It was excellent! I appreciate the video and coaching you share Bella. You’re awesome!
Appreciate you saying so. Terrific to hear this channel has helped you.
Great trades, and thanks for these concise explanations.
This is pretty random, but I just want to thank Mike B for the playbook, completely transformed my trading/life. We have to keep him protected at all costs 💯 🚀
love love love hearin this Billy. really appreciate you sharing this with me. train and trade well
Reading this now. So far it is amazing!
Great video.. keep the playbook type trades coming please.
More to come!
It's funny: I started out very much as a trend trader, but after watching videos like these on mean reversion, it is quickly becoming my favorite trade. In and out quick. Usually great RR.
What specifically do you look for on the tape when it begins to reverse? Besides bids or asks changing sentiment?
Are you watching the tape from the open to notice the selling exhaustion or do you have areas based on technicals/stats that it could potentially reverse? In the trade management (losses ) section, the first trade on Tesla was a loss as the trader tried to anticipate a bounce at 895, so what if there are multiple bounces before selling exhaustion similar to the 895 bounce?
There are both areas based on technicals and then we narrow in on tape reading at these levels. Levels can also be too far away from the mean that you recognize
when you mean by filters, do you mean by ema's? or something else?
Nice presentation, but I didn't understand the stats on ATR and trading range presented? Congratulations on your best day trading results. College student trading NFLX, and TSLA..
Giving the trader sense of how much a stock can move Ralph
Epic.☝🏼This could be THE best strategy for 2022. But for pizza in CT, get yourself down to Pepe’s, Sally’s, or Rossini’s. 🍕
well yeah but in Hartford...
excellent video - when he took his profits, was he able to sell on the "ask"? or to assure order fill, does he sell at "mkt"? ....or on the bid.......?
love learning from your channel.
there should be more pro female traders. hope to become one of them one day !
As do we!
When the trader shares the current stats for both tickets he mentions NFLX ATR is 1.4. Is atr being shown as a ratio and not as a dollar range? If so what are the inputs to said ratio?
I do it every day either on DJI or NDX.
My edge is pretty big, but of course it will not work on trending days.
Really good video, thanks!
Thanks for another quality video! SMB and scalping has been amazing for me. Which platform is that? proprietary? Looks like a blend of lightspeed/DAS. thanks!
Proprietary platform
@Mike Bellafiore: I Took DNA, what Tape reading tool should I use?
We use the Level 2 and our tape reading skills.
When you see the change on the tape, how long does that change need to take place? Today at the close msft was a great example. I saw that the bids were getting soaked at $301 but I wasn't too sure how long I should wait.
Just rewatched:) Thanks.
Oh more than once. Love it
@@mbellafiore19 Thanks Mike. I'll watch a few more times. too I am studying these clips closely. My apology for last week for imposing a longer time horizon perspective on the intraday trading time frames. That's where I came from, longer term trades. I am loving what you keep putting out and am learning a lot and remain very thankful for your education and seeing SMB pop up on my radar 2 or so years ago. I aim to learn and get very good at intraday trading. I am "emptying my cup" so to speak to not confuse it with longer term time frames. Today, I thought adding the onbalance volume and advance/decline indicators to charts to visually see the intraday moves and their relative weakness/strength. Thanks again. Kirby
Thanks.
great vid
I live in Torrington! lol I thought I was the only millennial trader in the Litchfield County.
Go Connecticut!
fenomenal
Thanks
Thanks
Fire Mike
☦🕊❤
When Mike was an intern? Was CT a statehood yet? Or still one of the 13 colonies? LOL
Shoutout Brandon #INVSTRS
Go Brandon! 💪
😬
i dont see the point of scalping...trading for nickelss and dimes...id rather trade 300 to 750 points..also you have to bat 1000 day in and day out..something retail traders cant do..i mean your risking what 1% for 8 points?...
Sometimes, the R:R can be very favorable when scalping, and can sometimes be compared to the R received when swing trading. In this instance you were able to risk a point to make 7-8 points, giving this trade a 7-8R. Its the equivalent to risking 5 points to make 40. To add onto that, some market environments are much better for move to move trading, rather than swing trading. Hope this helps