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The Book of Bonka

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The Book Of Bonka
Bonkanomics
Disclaimer
- I am NOT a licensed financial advisor—any and all of the
latter mentioned information shall not be taken as financial
advice.
- I bear no responsibility for the losses and/or gains of those
who choose to follow my guidance.
- YOU are your own financial advisor—ACT LIKE ONE.
- What I do is by absolutely NO means a way to ‘get rich
quick’.
- With that out of the way, time to get into things.
Intro
- I’m a in Senior in high school
- I’ve been trading since I was 15
- I have had to work for every dollar I’ve ever spent, not due to
necessity but by choice
- I’m going to teach you what works for ME; what works best for me
may not work best for all
- Although I’m going to cover various technical aspects of daytrading,
PSYCHOLOGY IS KING IN THIS GAME
My Beginnings
-
-
I had always been more interested in STEM and other ‘nerd-esque’ scientific
things growing up
I wanted nothing more than to play video games all day while I was growing
up.
At the ripe old age of 9, I was diagnosed with ADHD—I was impulsive,
obsessive, ambitious. This is possibly the best gift God has ever given me.
Coincidentally, although it’s probably the most cliche thing I could ever
possibly say, I never had much interest in the stock market until my friend and
I watched The Wolf of Wall Street while sleeping over his house (thank you
Luke).
Having been diagnosed with ADHD earlier that year, I was HOOKED. The
only question that remained was how would I do it?
My Beginnings (Continued)
-
-
Being a child with completely unrestricted internet access, I
didn’t exactly utilize the following years to their best extent.
I proceeded to watch The Wolf of Wall Street 13 times within 4
years. I didn’t like the money in the movie as much as I liked
Margot Robbie.
As I entered high school, though, the stock market began to
pique my interest again. I joined my school’s investment club
and decided to participate in their stock market simulation
game.
I blew not one, but TWO separate accounts over the course of
3 months with $100k to start on 2x BP margin.
Currently, as a Senior, I sit in first place with total gains
amounting to 315% (Outdated screenshot →)
I just want to help people learn the right way, unlike how I
learned at first.
What I Will Cover - The Basics
-
Liquidity/Candle Imbalances
Fair Value Gaps
Order Blocks
Defining Range and Implied Defining Range
Indecision Candles
Liquidity/Candle Imbalances
• Liquidity is often demonstrated though candles with an
imbalance in their wicks.
• Often found on 1 min, 5 min, and 15 min timeframes.
• If a candle’s wick is much greater in size than body, this is
often an indication of institutions (banks, firms, etc.) selling off
their positions or looking to enter new positions.
• Institutions often sweep liquidity at market open to stop out
orders from the day before so they can fill new orders at the
start of every session.
◦ Due to this volatility, don't trade until 10-10:30 EST, which
is when institutions often look to re-enter their positions.
Liquidity (Continued)
• If points of liquidity (large candle
imbalances) on the 5m and 15m chart
are the same, then we know that such a
point is a strong indicator of liquidity (i.e.
institutions often enter and exit their
positions at such a point).
◦ Ex) Because our line of support
touches the candle wicks at the same
point on both timeframes, we know that
our marked support level is a strong
point of liquidity.
Fair Value Gaps
• FVG's are found in a 3 candle sequence, with the wicks of the 1st and
3rd candles not completely overlapping the body of the 2nd (middle)
candle.
◦ Often found on the 1 min, 5 min, and 15 min charts (with 5 min
being the most reliable usually).
• FVG's are often called liquidity voids—institutions use them to stop out
retail positions and enter or exit their positions.
• If there is a retest and rejection off the FVG, then institutions are looking
to enter new positions and make money; you should enter to do the
same.
◦ If price action (candles) break the FVG when there's a retest,
then the FVG is invalid and will not hold up for a trade entry.
◦ FVG's often are rejected off of.
• Oftentimes you can use the wicks of a FVG as a stop-loss, as banks
take liquidity at such a point for the sake of stopping out orders.
◦ To avoid getting stopped out in such a way, place your SL slightly
below/above where liquidity was taken.
Order Blocks
• Order blocks are large zones where orders
are often sold off and/or filled by institutions.
• Oftentimes, price will reject off order blocks
following a retest.
• To find an OB, look for consolidation of price
after a trend to either the upside or downside.
◦ Enter position off a break of structure
and retest(s) of OB
• If price movement doesn't reverse after a
retest of an order block, institutions are
looking to enter more positions, not sell off
their existing positions.
Defining Range & Implied Defining Range (DR & IDR)
• Used to get a sense for a trading day's trend.
• How to find:
• Defining Range: mark the wicks of the high
and low of price from 9:30-10:30am EST on the
5 min chart.
• Implied Defining Range: mark the candle
bodies of the high and low of price from
9:30-10:30am EST on the 5 min chart.
◦ If a 5 min candle closes above the DR or
IDR, there is an 88% chance that the low of the
DR will be the low of the day, and vice versa.
Indecision Candles
• Demonstrates where buyers
and sellers find equilibrium.
• Can be used as order blocks
after accumulation and break of
structure on 5 min and 15 min
timeframes.
◦ Mark wicks to act as
support/resistance.
Fin.
(For Now)
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