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Tuesday , October , 23 2018
Cheat Sheet - MSP ALGO Support/Resistance based on dynamic Money Flow Analytics

The Cheat Sheet Reporting Tool Monitors Support and Resistance Levels

What is a support and resistance level in the stock market?


What is support?
Support is where buyers think a price for a stock is at a good price and will buy the security. Normally there are more buyers than sellers at support levels and the price of the security will rise. If you are going to buy a stock or go long a security you always want to buy near support where the big players are buying. 

What is resistance?
Resistance is where buyers think a stock is too high or pricey and not a good time to buy the security. Normally there are more sellers than buyers at resistance levels and the price of the security will fall. If you are going sell or go short a security you always want to short near resistance where the big players are selling.

You can find out the institutional traders and big players support and resistance levels where they are buying or selling by looking at the money flow and that is where you want to look for entries or exits, longs or shorts. You  just want to follow big money buying or selling patterns.

How to use the Cheat Sheet Reporting Tool?

The  cheat sheet is a reporting  tool to be used in order to gain an edge over other traders and  competitors, especially in the stock market game. It contains support and resistance levels along with other important information for intra-day or swing trading.

The cheat sheet report contains the following columns:

1) Symbol - The symbol is the stock ticker or name used on the exchange for a company.

2) Price - Yesterday's price at the close at 2000 after hours.

3) Pendulum - A center point between a fixed support and resistance level, where price action swings freely back and forth, normally where institutional algos reside to push price up or down.

4) Resistance High - A resistance level where selling pressure may occur or an exit target for long.

5) Resistance Low - A resistance level where selling pressure may occur or an exit target for long.

6) Support High - Where buying pressure may occur or an exit target for a short.

7) Support Low - Where buying pressure may occur or an exit target for a short.

8) Reversal Pivot- Pivot monitoring the money flow for reversals. It is detecting whether based on current price action a short or long is pending based on the price of the pivot; if any.

9) Expiration Date: The recommended option expiration date of an option if going long or short - Month and Year.

10) Call Strike Price: The recommended strike price of an option - Options strike price should be closest to the price of your long 1st target or hit in the money once meet the resistance level

11) Put Strike Price: The recommended strike price of an option - Options strike price should be closest to the price of your short 1st target or hit in the money once meet the support level

12) MM's HOD/LOD or Pendulum: Market Makers calculations on support/resistance or pendulum price for the day (chop zone)- How the stock will move throughout the day.

13) 3 Day Money Flow: The Money flow over a 3 day period for a stock. If the column is red then more money left the stock over the last 3 days than entered. If the column is green then more money came into a stock over the last 3 market days than left.

 

How to use the cheat sheet?

You got a long signal on a SPY using MSP ALGO Trading Robot Daily on Feb 9,2018, so you decide to enter the stock the next day for a swing trade opportunity. You want to know what type of option to purchase and what your potential long target is. You notice the stock price is  near support low and it is where you want to go long, but missed when price met support but will enter into a new position near $255, so you look to see where the next highest price is which would be the next column to the left of support low is support high. Support high has a price of $270.07 which would be the next resistance level since it is the next price above support low. You don't buy shares but just options, so now you need some ideas on what is the best strike price and expiration date.

You look under the column header named "Exp Date", and see that the  recommended expiration date for an option is Mar 23 2018. You do not see any SPY options that expire on that date so you get something as closest to the date as possible.  Now you want to select a strike price. You are going long so that means you will need to buy a call, so you look under the column named "Call Strike Price" You notice that the call strike price is higher than your target of $270 and know that it is best to be in the money once your target is hit, so you adjust the strike price to the target price of  $270.  Now you have a $270 call that expire late March expiration date.