This video introduces a highly effective day trading setup using BigShort's leading indicators. The strategy focuses on identifying pre-market signals, waiting for market open confirmation, and executing trades with precision.
Key Takeaways
Focus on Large and Mega-Cap Stocks
Trade stocks with high liquidity and significant institutional participation.
Avoid low-float or short-squeeze stocks, as they can move unpredictably.
Pre-Market Setup
Look for tight pre-market price action (a narrow range).
Identify a visually significant manipulation candle (a large yellow candle):
If the candle points down → bearish bias.
If the candle points up → bullish bias.
Market Open Confirmation
Wait for confirmation at the market open before entering:
For a bearish trade: Price breaks above the pre-market high, then reverses (bull trap).
For a bullish trade: Price breaks below the pre-market low, then reverses (bear trap).
Use Net Option Flow (KNOF) for additional confirmation:
Bearish signal: Calls sold, puts bought.
Bullish signal: Calls bought, puts sold.
Check Smart Flow (smart money) and Momentum Flow: Both should align in the trade direction.
Execution and Profit-Taking
Be fully prepared before the market opens: Identify target stocks and potential options in advance.
Enter the trade only after confirmation signals align.
Take profits gradually during the move:
Exit on a break of the previous candle’s high/low.
Watch for large reversal candles near the bottom or top of the move.
Trade Selection and Risk Management
Avoid trades that don’t meet all criteria, even if they appear promising.
Practice disciplined risk management and avoid emotional decision-making (FOMO).
Focus on consistency rather than home-run trades.