Balance Theory is LITERALLY how stocks move

It can be used in all types of trading

Here's a breakdown of what it is and how I made close to $2,000 using it👇

Balance Theory is based upon the thesis that stocks are either trading in "balance" or out of "balance"

So what exactly is balance?

Balance can also be considered fair value. A price area where buyers and sellers are both comfortable trading.
You will see a balance area in zones where price is typically choppy.

You should be able to see clear support and resistance areas.

Here's an example on $BA
So how do we use this in our trading?

There's 2 ways that a stock will react to balance.

I'll go in depth on both.

The first one is a breakout👇
A breakout of balance is fairly simple.

Price is in fair value. Over time, one side (either the buyers or sellers) has to give up and the stock breaks out of balance.

It's no different than any other breakout.

Here's the example on $BA
You can see price had a strong breakout of balance.

You can trade this by getting long as the breakout happens or waiting for the pull back into balance

Simple right?

Let's move on to the second way to trade balance (my favorite)👇
2. Reversals

There is a key concept to understand about balance and here it is:

When price FAILS to breakout of balance and ACCEPTS back into balance, there is a HIGH probability that price will rotate to the other side of balance.

Woah, that's a lot. Let's break it down👇
So looking at $BA we can see price failed to breakout of balance

Price came out of balance, but immediately came back in and failed to hold the top of the balance zone
Now let's talk about acceptance.

Price acceptance simply means price spends time and volume in a certain area.

Price is accepting to trade in that area

Take a look at $BA
Now that price has
1. Failed to breakout
2. Accepted back into balance

It means there is a high chance price will rotate to the other side of balance...

and that's exactly what happened!
You can see that price actually did this multiple times on $BA

There were 5 opportunities you can see from just this one chart👇
So...

How did I trade this on $ADBE?

Here's a balance zone on $ADBE that was from a while back.

I have it drawn in purple
Zoom into a few weeks ago, we can see price failed to breakdown of this balance zone.

We also can see price accepting back into balance.

I knew there was an opportunity at this point
I simply waited for a pull-back into a demand zone (which also coincided with the bottom of balance - a natural support area)

I got calls at demand and sold them as price rotated back to supply towards the other side of balance
I ended up making close to 90% on my calls and just under $2,000 profit.

Overall a very solid trade!
I hope you learned something from this thread

If you did, all I ask is that you like + retweet the original tweet to this thread❤️

Let's help hundreds of other traders who could add this knowledge to their trading toolbox🚀

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#தினம்_ஒரு_திருவாசகம்
தொல்லை இரும்பிறவிச் சூழும் தளை நீக்கி
அல்லல் அறுத்து ஆனந்தம் ஆக்கியதே – எல்லை
மருவா நெறியளிக்கும் வாதவூர் எங்கோன்
திருவாசகம் என்னும் தேன்

பொருள்:
1.எப்போது ஆரம்பித்தது என அறியப்படமுடியாத தொலை காலமாக (தொல்லை)

2. இருந்து வரும் (இரும்)


3.பிறவிப் பயணத்திலே ஆழ்த்துகின்ற (பிறவி சூழும்)

4.அறியாமையாகிய இடரை (தளை)

5.அகற்றி (நீக்கி),

6.அதன் விளைவால் சுகதுக்கமெனும் துயரங்கள் விலக (அல்லல் அறுத்து),

7.முழுநிறைவாய்த் தன்னுளே இறைவனை உணர்த்துவதே (ஆனந்த மாக்கியதே),

8.பிறந்து இறக்கும் காலவெளிகளில் (எல்லை)

9.பிணைக்காமல் (மருவா)

10.காக்கும் மெய்யறிவினைத் தருகின்ற (நெறியளிக்கும்),

11.என் தலைவனான மாணிக்க வாசகரின் (வாதவூரெங்கோன்)

12.திருவாசகம் எனும் தேன் (திருவா சகமென்னுந் தேன்)

முதல்வரி: பிறவி என்பது முன்வினை விதையால் முளைப்பதோர் பெருமரம். அந்த ‘முன்வினை’ எங்கு ஆரம்பித்தது எனச் சொல்ல இயலாது. ஆனால் ‘அறியாமை’ ஒன்றே ஆசைக்கும்,, அச்சத்துக்கும் காரணம் என்பதால், அவையே வினைகளை விளைவிப்பன என்பதால், தொடர்ந்து வரும் பிறவிகளுக்கு, ‘அறியாமையே’ காரணம்

அறியாமைக்கு ஆரம்பம் கிடையாது. நமக்கு ஒரு பொருளைப் பற்றிய அறிவு எப்போதிருந்து இல்லை? அதைச் சொல்ல முடியாது. அதனாலேதான் முதலடியில், ஆரம்பமில்லாத அஞ்ஞானத்தை பிறவிகளுக்குக் காரணமாகச் சொல்லியது. ஆனால் அறியாமை, அறிவின் எழுச்சியால், அப்போதே முடிந்து விடும்.
Master Thread of all my threads!

Hello!! 👋

• I have curated some of the best tweets from the best traders we know of.

• Making one master thread and will keep posting all my threads under this.

• Go through this for super learning/value totally free of cost! 😃

1. 7 FREE OPTION TRADING COURSES FOR


2. THE ABSOLUTE BEST 15 SCANNERS EXPERTS ARE USING

Got these scanners from the following accounts:

1. @Pathik_Trader
2. @sanjufunda
3. @sanstocktrader
4. @SouravSenguptaI
5. @Rishikesh_ADX


3. 12 TRADING SETUPS which experts are using.

These setups I found from the following 4 accounts:

1. @Pathik_Trader
2. @sourabhsiso19
3. @ITRADE191
4.


4. Curated tweets on HOW TO SELL STRADDLES.

Everything covered in this thread.
1. Management
2. How to initiate
3. When to exit straddles
4. Examples
5. Videos on

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