JAN 2021: LRCX $500 – $505 Bull Call Spread
Stock
Trade Structure
Trade Date
Price Paid
Expiration Days
THIS IS A DELAYED TRADE FOR EDUCATIONAL PURPOSES ONLY.
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Trade Rationale
Trade Selection Criteria
Overall market movement
We had a nice pullback in the entire market which allowed us to put on 18 trades this week.
No Earnings or Significant News
Earnings are behind us and were announced on 1/27
Bollinger Bands outside Keltner Channels
Bollinger bands are clearly outside the Keltner Channels.
RSI Analysis
This is a post earnings trade. Our regular indicators don’t apply here.
ADX Analysis
This is a post earnings trade. Our regular indicators don’t apply here.
Trade Analysis
Trade Outcome
Profit/Loss
Beginning Account Balance
Ending Account Balance
Hello, I have a question because I didn’t find it in the book (or overlooked it): what time-frame do you use in your charts? Is that 5 minutes? Greetings from Austria, Alex
I have mentioned it in the book. The time frame is always 3Month Daily timeframe for all my charts.
Just to make sure that I’m reading the support correctly, is the support at $500 coming from that last candlestick? It’s a clear hammer candlestick demonstrating a strong bull sentiment on that day. Is that right or is there another candlestick you are using for the $500 support?
Support comes from multiple touch points at a price level. The more times price/action bounces off of a support level, the stronger the support is. In this case there are 4 points in the past where price has flirted with $500 (including the latest hammer you are pointing out)