Live stock analysis and trading gems — 31 May 2023

This 3-hour live session from 31 May 2023 analyses HP ($HPQ), the CAC40, Alibaba ($BABA), the Dollar and USDJPY in real time. Beyond the charts, it details the price analysis method, how to read bear traps and liquidity zones, and the trade-off between a tight and a wide stop-loss depending on the timeframe.

In this YouTube live from 31 May 2023, I analysed stocks, indices and currencies suggested by participants in real time. Beyond the chart analysis, this session was above all an opportunity to explain many of the principles behind my trading method and to cover the psychology of market participants.

This live is packed with trading gems and will give you plenty of useful information for your future investments.

Chapters

Timecode	Topic
00:00	The live starts shortly
03:07	Let’s get to know each other
06:32	Introduction
13:59	Speculation, fundamental analysis and how price analysis complements them
15:46	HP $HPQ chart analysis — what everyone sees, and what I saw before the results
26:14	CAC40 analysis — how retail investors see it VS the informed
1:39:13	Trade explanation: Alibaba $BABA — investor views, breakouts, supports, bear traps, liquidity; trading strategies, psychology, tight/wide stop-loss, short/long timeframes
2:39:16	Dollar analysis and correlation with indices and currency pairs
2:55:50	USDJPY currency pair analysis
3:06:00	Conclusion

Topics covered

Trading method — price analysis, how it complements fundamental analysis and speculation
Market psychology — how retail and informed participants read the same charts differently
Bear traps and liquidity — decoding buy-side traps and liquidity zones
Stop-loss management — the trade-off between a tight and a wide stop depending on the timeframe
Correlations — Dollar, indices and currency pairs

Find this live and other analyses on the EliteProfit Trading YouTube channel.

Frequently asked questions

What is a bear trap in trading?

A bear trap is a bearish break of a support level that quickly fails: the price turns back up and traps the sellers who entered on the break. These false signals often occur precisely where the largest number of stops are placed.

What is a liquidity zone on a chart?

It is an area where many pending orders are concentrated — stops and entry orders — typically beyond an obvious high or low. Prices often head there because that is where the counterparty needed for large volumes sits.

Should you use a tight or a wide stop-loss?

It depends on the timeframe of your analysis. A tight stop on a setup read on a long timeframe will be swept away by market noise; a wide stop on a short-term trade ties up too much capital for the gain being targeted. Stop and horizon have to be consistent.

Do retail and informed investors read the same chart?

They see the same prices but draw opposite conclusions. Where many retail investors see an obvious support to buy, informed participants may see a reserve of orders to come and collect. This is one of the themes developed in this live on HP and the CAC40.

Are technical and fundamental analysis complementary?

Yes. Fundamental analysis assesses the value of a business, price analysis shows what the market is willing to pay now and where participants’ decisions sit. The first guides the choice of assets, the second the moment to act.

Chapters

Topics covered

Frequently asked questions

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