https://chatgpt.

com/share/684f9d0c-51f4-800e-ab47-a50e917d0ad0

Key Terminology:

Breakout

Breakdown

Squeeze will cause upward moment

Slam will cause downward moment

🔑 Key Concept: "Stops Move the Market"

When traders are forced to exit their positions due to stop-losses being hit, it creates powerful
price movement.

 A long stop-loss = a sell order → pushes price down (slam)

 A short stop-loss = a buy order → pushes price up (squeeze)

These forced exits are what cause fast, explosive moves — not just regular buyers and sellers.

📉 "Minus Sum Game"

This means the stock market is not win-win. For every winner:

 Someone had to lose.

 When you buy, someone had to sell to you.

 When price moves up, it’s often because someone else was forced to stop out of a
losing position.

🔁 "Buyers become sellers and vice versa"

If someone buys, they must sell later to take profits or cut losses.
If someone shorts, they must buy later to close the position.

So if you know where traders will likely be forced to exit, you can predict strong price moves.
🔥 Focus of the Webinar

The aim is to:

1. Identify where traders will get stopped out (both long and short).

2. Spot squeezes (up) and slams (down) — the most powerful, high-velocity moves.

3. Understand where bidding vs. asking happens — who's dominating the tape.

4. Use this to predict and plan trades.

📌 Example:

 A stock is in a tight range between $98–$100.

 Many shorts have their stop-loss at $101.

 Many longs have their stop-loss at $97.

Now:

 If price breaks $101, shorts are forced to buy back → short squeeze upward.

 If price breaks $97, longs are forced to sell → slam downward.

👉 The key is not who’s buying or selling willingly — it’s who’s being forced out.

🧠 Final Takeaway:

“When planning a trade, think of where everyone else is going to stop out. That’s where you get
in.”

This is a contrarian trading approach:

 You enter where others exit.

 You profit from their pain (forced exits).

 You become the predator, not the prey.

You look for:

  Support zones where buyers are likely to stop out (downward move fuel).

 Resistance zones where short sellers are likely to stop out (upward breakout fuel).

📌 1. Price Breaks Key Resistance (Short Squeeze Example)

🧠 What is Resistance?

A resistance is a price level where many sellers sit — usually because:

 People bought lower and want to take profits.

 Traders are shorting here expecting a reversal.

📊 Example:

 A stock has been stuck between $48 and $50 for days.

 Many short sellers have entered near $50, expecting it to fail again.
  Above $50, they place stop-loss orders (e.g., at $51).

Now...

✅ Price breaks above $50 → reaches $51:

 Those short stop-losses are triggered (shorts forced to buy back).

 Buying pressure increases rapidly = short squeeze.

 Price explodes upward to $53, $55 or more.

💡 Why This Happens:

 Stops act like market buy orders for shorts (they must buy to close).

 Breakout buyers also jump in.

 Liquidity thins out → price accelerates.

📈 Trader Psychology:

 Shorts panic and cover (buy).

 Momentum traders pile in.

 Market shoots up rapidly.

📌 2. Price Breaks Key Support (Long Stop-Out Example)

🧠 What is Support?

Support is a level where buyers step in. It’s a price floor. If broken, it triggers fear and panic
selling.

📊 Example:

 A stock holds $200 support for weeks.

 Traders buy near $200 with stop-loss orders at $198 or $197.

Now...
❌ Price breaks below $200 → hits $197:

 Stop-losses from long traders are triggered (they’re forced to sell).

 Price quickly drops to $194 or $190.

 This is a stop-out slam or flush.

💡 Why This Happens:

 Longs are forced to sell (stop-out).

 New short sellers may jump in on breakdown.

 Fear amplifies → panic selling.

📉 Trader Psychology:

 Longs cut losses and exit.

 Shorts get aggressive.

 Weak hands are shaken out → price falls fast.

🧠 Summary Table:

Who's
Scenario Trigger Action Market Effect
Forced

Short Forced to Short Squeeze, Price

🔼 Breaks Resistance ($50 ➜ $51) Shorts
stops Buy Pops

Forced to
🔽 Breaks Support ($200 ➜ $197) Long stops Longs Slam Flush, Price Drops
Sell

🎯 Why This Matters to You as a Trader

 These stop zones are liquidity pools.

 Institutions and algos often target them to trigger big moves.

 You can trade:

 o Breakouts (ride the momentum)

o Fakeouts (fade false breakouts if there's no volume)

🎯 Trading Wisdom:

"The market doesn't move where it wants to go — it moves where it has to go to find liquidity."

So instead of asking “Where is the trend?”, ask:

 “Where are the stops?”

 “Whose pain will cause a move?”

🎯 Summary Table

Open Zone Bias Trade Setup

S1–S2 Neutral Long on reversal at S2

S2–S3 Slightly Bearish Short on breakdown of S2

S3–S4 Bearish Short with target S4/S5

S4–S6 Exhaustion Reversal long if hammer forms

R1–R2 Neutral Short at R2 or long on breakout

R2–R3 Bullish Long on pullback

R3–R4 Overextended Fade if R3 rejects, or long if breakout holds

R4–R6 Blow-off zone Only short if strong rejection

🧠 Your Mindset:

 First 30 mins = observation, not prediction

 Watch how price reacts to key Camarilla levels, not just where
it is

 Let market show its hand, then execute with precision

🎯 Summary Rules:

Time Do This

0–5 min Observe only — don’t trade

5–10 min Mark reaction to Camarilla pivots (R3/S3, R4/S4)

10–15 min Plan trades: reversal, breakout, or range setup

15–30 min Confirm direction and enter with stop below/above pivot

🛠 Pro Tip:

If you really want to engage early, use 1-minute charts and combine:

 Camarilla Pivots

 VWAP

 Pre-market high/low

 Tape or Level 2

Otherwise, let the market give you structure first.

📊 Key Rules for the First 30 Minutes

Rule # Action

Let price structure and volume confirm bias. Avoid trading the
🕒 Wait 10–15 mins
first 1–2 candles.

📍 Mark the Opening Range

Useful for breakout setups (ORH/ORL with R3/S3 confluence).
High/Low

📈 Combine Camarilla with

VWAP reclaims or rejections validate trend direction.
VWAP

🎯 Focus on R3/S3 & R4/S4

These are your decision levels for trend or reversal setups.
Zones

📈 Last 30-Min Trade Plan Summary

Price Zone Near Close Bias Action

Above R4 Overbought Fade short on reversal

Between R3–R4 Bullish Long if R3 holds, target R4

Between S3–R3 Neutral / Balanced Range scalping or stand aside

Below S3 Bearish Short if S3 fails, or long on S4 hold

Below S4 Oversold Short flush or reversal long setup

✅ First 30-Minute Camarilla Trade Plan Summary

Opening Price
Market Bias Your Game Plan (Wait 10–15 mins first)
Location

Between R1 ⚠️Wait and watch for breakout or rejection from R1 or S1.

Neutral/Choppy
and S1 Don’t trade immediately.

✅ Go long if price breaks and holds above R3 on volume

Near R3 Cautious Bullish
(Trend Long A or B). ❌ Fade if price instantly rejects.

Cautious ✅ Go short if price breaks and holds below S3 (Trend Short A

Near S3
Bearish or B). ❌ Long only if reversal candle forms.

Above R3 (R4 ⚠️Wait for confirmation. ✅ If price holds above R4, long
Overextended
zone) continuation. ❌ If false breakout → short reversal.

⚠️Avoid shorting blindly. ✅ Watch for hammer or strong

Below S3 (S4
Oversold volume → reversal long. ❌ If breakdown continues with
zone)
volume, short.

Right at Pivot ⚠️Wait. Market is hunting direction. Watch if price respects

Indecisive
(P) R1 or S1 first before entering.

Opening Gap > ✅ Use fade strategy if reversal signs appear. ❌ Don’t chase the
Extreme/Gaps
R4 or < S4 move. Look for trap + reclaim or exhaustion.

Here is a complete step-by-step trading plan using Camarilla Pivot Points for:
 1. 🕒 Opening Bell (First 30 Minutes)

2. Midday (Intraday Action)

3. 🔔 Closing Bell (Final 30 Minutes)

🕒 Opening Bell Plan (0–30 Min)

🎯 GOAL: Detect trend vs trap — don’t chase

✅ Step-by-Step:

1. Pre-market Prep (8:30–9:25 AM)

o Mark Camarilla levels: S3, S4, S5 / R3, R4, R5

o Identify pre-market high/low, VWAP, and yesterday’s close

o Determine opening location (S3–R3 vs S4–R4, etc.)

2. First 5 Minutes (Do Nothing)

o Let volatility settle

o Don’t take any trades unless you're an advanced scalper

3. 5–15 Minutes

o Watch for:

 Break and hold above R3 → Long setup

 Break and hold below S3 → Short setup

 Rejection at R3/S3 → Potential reversal trap

4. 15–30 Minutes

o Enter trades only if price shows:

 Directional intent (higher high/lower low)

 Volume confirms breakout or breakdown

 Candle structure supports move (engulfing, hammer, etc.)

Midday / Intraday (10:00 AM – 2:30 PM)

🎯 GOAL: Stay patient, trade clean setups only

✅ Step-by-Step:

1. After Initial Move

o Did price respect or break Camarilla pivots?

o Is it trending or reverting back to VWAP?

2. Watch VWAP Confluence

o If price holds above VWAP + R3 → strong long bias

o If price fails at VWAP + under S3 → trend short bias

3. Avoid Chop Zones

o If price stuck between S1–R1, limit trades or scalp with tight stops

4. Use Pullback Entries

o Re-entry at VWAP or R1/S1 retests if trend is valid

5. Volume Confirmation

o Don’t trade if volume dries up — low liquidity = fake breakouts

🔔 Closing Bell Plan (2:30 PM – 4:00 PM)

🎯 GOAL: Ride the final move or fade exhaustion

✅ Step-by-Step:

1. 2:30–3:00 PM

o Reassess trend: Is price extended from VWAP?

o Look for pullbacks to pivots (R3/S3) or VWAP reclaim

2. 3:00–3:30 PM

o Enter trend continuation or reversal trades:

 Longs if reclaiming R3 from below

 Shorts if failing at R4 (fade blow-off tops)

 Longs if hammer at S4 (fade panic flushes)

 3. 3:30–3:55 PM

o Tighten stops

o Exit intraday positions unless you plan to swing

4. 3:55–4:00 PM

o Avoid new trades — MOC (Market on Close) orders spike volatility

🧠 Strategy Summary by Time Block:

Time Range Objective What to Do

Wait for confirmation at S3/R3. Use reversal or

9:30–10:00 AM Establish bias
breakout setup.

10:00–12:00
Ride trend or fade Use VWAP and Camarilla retests to confirm direction
PM

Avoid noise or range

12:00–2:30 PM Stay light unless trend continues cleanly
trade

Trade power move or trap setups with tight

2:30–4:00 PM Final move or fade
management

🔍 Step 1: How to Know if It’s a Trend Long or Trend Short Day

Use the “Relationship Bias” box on the left side of the image, based on the comparison
between today’s Camarilla levels (S3–R3) and yesterday’s levels.

🔁 2-Day Pivot Relationship (S3–R3 Range Comparison)

Today vs Yesterday Pivot Levels Bias Trend Type

Higher Value Bullish 🔼 Trend Long

Overlapping Higher Value Slightly Bullish 🔼 Trend Long

Lower Value Bearish 🔽 Trend Short

Overlapping Lower Value Slightly Bearish 🔽 Trend Short

Unchanged Value Neutral / Choppy None

Inside Value Breakout Likely Wait for confirmation

Outside Value Choppy Fade extremes

🧭 Step 2: Identify Where Price Opens Relative to Pivot Points

Once you know your bias (trend long or short), locate where the opening price is relative to
today’s Camarilla levels:

🔹 Common Camarilla Pivots to Watch:

 S4 / S3 / Pivot / R3 / R4 / R5 / R6

✅ Step 3: What to Do If Price Opens Between Pivot Levels

Here's a quick action guide depending on the trend bias and opening price zone:

Trend Bias Opening Zone Action Plan

Between S3– Look to go long if price holds above S3 or reclaims Pivot. Target
🔼 Long Bias
Pivot R3 or R4.

🔼 Long Bias Between R3–R4 Go long on pullback to R3. Target R4 or R5.

Only long on hold above R4. Watch for F (R6 Reversal). Don’t
🔼 Long Bias Between R4–R5
chase.

Between Pivot– Wait for break and hold above R3 to go long (B pattern). Fade if
🔼 Long Bias
R3 rejects.

🔽 Short Bias Between R3– Look to go short on rejection at R3. Target Pivot or S3.
Trend Bias Opening Zone Action Plan

Pivot

Short if price breaks below S3 (B or A in short setup). Watch for

🔽 Short Bias Between S3–S4
E/F reversal.

🔽 Short Bias Between S4–S5 Short continuation is valid — but manage risk. Oversold zone.

Wait! No strong bias — let direction form first. Use VWAP + first
Neutral Between R1–S1
15-min candles.

🎯 Bonus: Candle Confirmation to Enter

No matter the level:

 ✅ Entry: Reclaim + strong close above/below level (confirmation)

 ❌ Avoid: Wicks, traps, or fakeouts in first 5 min

🧠 Final Thought

The bias tells you which side to favor.

The open price tells you how soon you can act, and which strategy pattern (A–F) is in play.

📘 Full Camarilla Trading Plan – Step-by-Step

✅ 1. Pre-Market Preparation (8:00 AM – 9:25 AM)

🔍 A. Check If You Should Use Pre-Market Data

Refer to Screenshot 2:

 Use Premarket Data if:

o Premarket range breaks out or overlaps previous day’s high/low

 Do NOT use it if:

o Premarket is fully inside the previous session’s high/low

🧠 B. Identify Bias from Pivot Relationship

Refer to Screenshot 1 (Top Left "Relationship Bias"):

Today vs Yesterday (S3–R3) Bias

Higher Value Bullish (Trend Long setups)

Lower Value Bearish (Trend Short setups)

Overlapping Slight bias (watch confirmation)

Unchanged Neutral (expect chop)

Inside Value (Outside Day) Expect breakout — trend play

Outside Value (Inside Day) Expect fade — mean reversion

📊 C. Define Day Type: Inside or Outside Day

Refer to Screenshot 3:

Pivot Range (S2–R2) vs Yesterday Interpretation Strategy

Narrow (tight compression) 🔥 Outside Day Trend/Burst play

Wide (expanded) 🧊 Inside Day Fade extremes

🔔 2. First 30 Minutes After Market Opens (9:30 AM – 10:00 AM)

🔁 A. Do NOT Trade Immediately (First 5–10 Min)

 Let volatility shake out

 Observe price reaction to S3/R3, VWAP, and Opening Range (ORH/ORL)

📈 B. Identify Trend Type (Using Screenshot 1 - Trend Long/Short Models)

Trend Long Setups:

Pattern Description

A S3 → R3 Traverse

B R4 breakout with open inside R3

C Gap above R4 — strong continuation

Trend Short Setups:

Pattern Description

A R3 → S3 Traverse

B S4 breakdown with open inside S3

C Gap below S4 — strong continuation

🧠 Tip: Watch for candle confirmation (engulfing, strong volume, reclaim/failure).

3. Intraday Strategy (10:00 AM – 2:30 PM)

🔄 A. Follow the Trend Type You Identified

Bias Type Setup Type Entry Example

Trend Long Pullback to R3/VWAP Buy on retest if holds with strong close

Trend Short Pullback to S3/VWAP Short on retest if rejection confirms

Inside Day Fade R3 or S3 Countertrend reversal with tight stop

Outside Day Break R2 or S2 Trade breakout with volume confirmation

📏 Combine with:

 Volume spikes

 VWAP support/resistance

 Opening range break

🧠 4. Risk Management (From Screenshot 4)

Risk:Reward Minimum Win Rate Needed

2:1 ≥ 40%

3:1 ≥ 30%

4:1–5:1 You can win just 20–25% and still be profitable

🧮 Rule of Thumb:
  Don’t take trades with R:R under 2:1

 Always know your stop (below S3 for longs, above R3 for shorts)

⏳ 5. Power Hour Plan (2:30 PM – 4:00 PM)

🚀 A. Look for Closing Move or Reversal

 Trend Day: Continue in direction, add on pullback (R3 or S3 defense)

 Exhaustion: Watch for pattern F (R6 or S6 reversal setup)

Setup Zone Action

Near R3-R4 Long continuation or short reversal

Near S3-S4 Short continuation or long reversal

📉 Avoid trading last 5 mins unless part of exit management

✅ Bonus Checklist: Each Day Before You Trade

✅ Checklist Item Confirmed?

Is it an Inside or Outside Day?

Use premarket data?

Camarilla bias (Trend Long or Short)?

Opening price location (between which pivots)?

Trend model in play (A–F)?

Entry plan: break or reversal?

R:R ≥ 2:1?

Time to enter (10+ min post-open)?

Bias holds through VWAP or breaks down?

Closing trend continuation or trap forming?