Oliver Velez is a well-known figure in the trading education space, recognized for his contributions since the mid-1990s. He has a distinctive approach to trading, which includes several key strategies and concepts:
- Trading the Open
- Velez is known for his series "Trade the Open Like a Boss," where he demonstrates his method of trading during the market open.
- He emphasizes having a core universe of stocks on watch, focusing on large-cap stocks due to their liquidity, which is crucial for trading with size.
- Swing Trading
- In the early 1990s, Velez coined the term "Swing Trading" in an article about a style of short-term market play he designed for traders seeking quicker profits than the traditional buy-and-hold approach.
- Use of Moving Averages
- He utilizes the 20 and 200 period moving averages as a buddy system to identify the best locations to enter and exit trades.
- The relationship between these averages—whether they are flat, close together, or wide apart—can signal different market conditions.
- Specific Trading Tactics
- Velez covers various tactics such as the 1/3 bounce concept, the no follow-through concept, and the importance of tail bars.
- He also discusses how to handle losses, where to place stops, and how to create a stock watchlist.
- Educational Content
- Velez shares a lot of his trading wisdom for free on YouTube, offering insights into his trading decisions and the rationale behind them.
- Trading Style and Mindset
- Velez’s approach is characterized by a focus on familiar, liquid stocks, determining the path of least resistance after the market opens, and using specific set-ups and chart reading techniques, including Japanese Candlesticks.
- His style is not just about the strategies but also about the discipline and mindset required to be successful in trading.
Velez's trading style is built on a foundation of technical analysis, with a specific focus on the opening of the market. He incorporates various strategies, such as swing trading and using moving averages, to identify opportunities and manage risk. Additionally, his emphasis on chart patterns and specific trading tactics highlights his attention to detail and the importance he places on having a well-defined approach to the markets.
7/14/2024 04:25am
