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Warrior Trading // Ross Cameron // Day Trade Warrior
Before we continue...👀
💰Remember, day trading is risky and most traders lose money. You should never trade with money you can’t afford to lose. Prove profitability in a simulator before trading with real money.
❗❗My results are not typical. We do not track the typical results of past or current customers. As a provider of trading tools and educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole.
❌Do not mirror trade me, or anyone else. Mirror trading is extremely risky https://www.warriortrading.com/why-mirror-trading-is-a-bad-idea/.
🍏 All of the content on our channel is for educational purposes only. No data, content, or information provided by Warrior Trading, the Site, or the other products and services of Warrior Trading, is intended, and shall not constitute or be construed as, advice or any recommendation to buy, sell or hold a particular security or pursue any particular investment strategy.
✔️If you don’t agree with those terms and our full disclaimer (https://www.warriortrading.com/disclaimer), you should not continue watching our videos.
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Our website is filled with free info 🔎 Start with this guide, no opt-in required: https://www.warriortrading.com/day-trading/
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Warrior Trading // Ross Cameron // Day Trade Warrior
What's up, Traders. Alright, so today we're going to talk about day trading terminology, specifically the term circuit-breaker Halts. Now whenever we have a stock that makes a crazy move, like Dro is right here, which went from four dollars to over a hundred dollars per share in four trading sessions. I Get lots of traders emailing me asking about circuit breaker halts during the move up, This stock got halted many times.
So what triggers a circuit breaker halt? And what exactly does that even mean? Now, this is the thing: Stocks can get halted at any given time, and when a stock is halted, you cannot buy and you cannot sell. The only thing you can do is hang on for the ride and hope that doesn't open lower than the price that it halted at. So it's important for beginner traders and even experienced traders to really understand the causes of circuit breaker halts, so you can help reduce your risk. You can help prevent being a situation where you're likely to get stuck holding a position through a halt.
Alright, so we're going to jump in here. Now as we talk about day trading terminology, it's inevitable that other terms will come up as we talk about circuit breaker halts. so if some of those are unfamiliar to you, you can go on our website for your trading calm and look them up there. So, circuit breaker halts.
A stock can be halted and pause from trading for several reasons. Now, during these halts, you cannot trade. you cannot trade the stock in any way, and these halts will last for a minimum of five minutes, but can last for hours or even days. Now, we have written extensively on circuit breaker halts and there are a lot of intricacies to the halts.
So if this video by itself isn't enough to give you a full explanation, you can also go over to our website and read about it there. There are a couple of different types of halts that you guys should be aware of. The first is a code t1 This is halted pending news. Now this can happen when the company requests the trading be halted in their stock so they can release material news.
There's a couple reasons this might happen. Let's say for some reason that a company wants to release their news in the middle of the day. Typically, companies will release their news after hours so they don't have to have the stock halted, right? But if you release material news in the middle of the day, the company will often ask the exchange to halt their health or stock so no trading can take place so earnings could be an example. Another thing that happens from time to time is when we see a stock that makes a really quick move up like a 10, 20, 30 percent move up.
The company will halt the stock to respond to the price action. Let's say for instance, that the stock is moving up because there's rumors. You know that they're going to get bought out by like Apple or something like that. Well, the company can ask the exchange to halt shares of helped pile trading and say we're going to respond to this And they respond and say, well, yes, it's true. Apples gonna buy us the stock is going to reopen higher right? Or they say, you know what There's that rumor is completely false. We are not interested in a sale. There's there's just no truth to it. The stock usually opens lower.
so when you're trading stocks on rumors, you have to realize that there's always the potential that the company can request that the shares be halted from trading while they respond to that news. That's why I Holding stocks that have been trading on rumors can be a bit risky. Now a Code H10 This is the SEC suspending trading in a stock. This is bad.
You never want to be holding a stock. To the long side that's halted on an H 10 code. This basically is the type of halts we see with penny stocks. You know, with companies suspected of stock promotion or fraud.
You know those companies that send out those mailers and the emails and stuff the next thousand percent runner. Those are the types of stocks that often get halted. The SEC wants to try to figure out you know who's manipulating it, who's behind this. And the sad thing is that the people who are usually still holding when it gets halted are not the people who initially got this stock going in the first place.
It's you know, the postman and you know your plumber and just people that bought the stock because they saw the mailer and they you know wanted their chance to have a big win. But unfortunately this is a halt that we do see from time to time. The good news is that this isn't something that really affects me because I don't trade penny stocks and I have a big advocate of not trading penny stocks. I Instead trade stocks usually between like a dollar fifty and and ten dollars a share.
So halted pending news and halted on SEC investigation. Those are two halts that we see you know on a fairly regular basis, but they're they're pretty easy to avoid. Don't trade penny stocks and be careful trading stocks that you know are running on rumors. Now the next type of halt is the Lu DP Hall This is the limit up, limit down pause.
It's a volatility trading pause and this is a to prevent stocks essentially from having a flash crash. So if a stock suddenly drops, you know, 80% Well, we need to have some type of mechanism in place to prevent that from happening. Now, when we've had flash crashes in the past, there's been suspicion that these were caused by fat-finger orders. So fat-finger orders when you type in 2000 shares and you accidentally press it for 200,000 shares and you send the Buy button and all of a sudden this stock takes off.
Someone just you know sold 200,000 shares. The market can't handle that type of sell. You get a huge drop, other traders start panicking, and then all of a sudden you get a flash crash and you know that's what happened. We've seen that happen several times. In May of 2010 there was a flash crash. The Dow Jones lost almost a thousand points and it was in ten minutes. Right now. that happened again.
In 87 a drop of 500 points, there's 22% drop. And you know this is the the fear that you know the market is designed for stocks to go up right. Stocks go up. Traders make money, investors make money, your 401ks grow.
So it's important for the exchange is to put in some mechanisms to help prevent a flash crash. Now this is what they did. They've got the limit up, limit down, pause. So this is a five-minute halt to pause trading.
It allows traders and investors to, kind of, you know, gather themselves, circulate the news, understand what's happening, and it just you know, slows down that panic. Alright, now there are some different thresholds of what will trigger a circuit breaker halt. Alright, and stocks under three dollars have different circuit breaker rules than stocks over three dollars. The circuit breaker thresholds are also doubled between 9:30 and 9:45 because that's the time of day when peak volatility exists.
Alright, so let's look at the breakdown of what stocks are going to be included in the circuit breaker halts. So Tier 1 and Tier 2 securities between 9:45 and 335 P.m. All right, the Tier 1 securities. If they move up or down 5% in a period of 5 minutes, a circuit breaker halt will be triggered in it will pause trading.
Tier 1 stocks are all securities in the Sp500, the Russell 1000 index, and includes some exchange-traded products. They need an average of 2,000,000 shares in daily volume, so the bands here are 5% So the stock is not expected these big you know, large market cap stocks. They're not expected to move more than 5% in a period of 5 minutes. Alright, now what do we use as the reference point for that 5% And this is.
this has been a question that lots of traders ask me and this is sort of where we get into the intricacies. Well, I'll explain it in one second. Now, Tier 2 Stocks: These are. These are all stocks priced above $3 but they don't require 2 million dollars a day or 2 million shares a day and volume, so they're a little less.
They're not as thickly traded. These are the stocks that we are typically trading. the tier 2 stocks. These have thresholds at 10% so if the stock moves up or down 10 percent in a five-minute period, it can get halted Now between the hours of 9:30 and 9:45 and 335 and 4 P.m.
At the O And the clothes. When we see peak volatility, the bands are doubled the volatility bands. so instead of being 10% they're 20% And that allows for that. You know those spikes and whipsaws that we often see right out of the gates all right now I won't cover the lower priced stocks and we I mean I guess I'll cover just for the sake of it.
But I typically wouldn't be trading a stock you know, below $1 but the stocks between 75 cents and three dollars. They do have larger bands as well. All right. So these give you a little bit more room before circuit-breaker halts going to trigger. And that's probably most useful when you're talking about a stock that's like a $2.00 stock. You know it's just kind of below the $3.00 threshold. Those stocks potentially can squeeze and move more because they're not going to get halted every 10% or every 20% right? They've got a bigger band. Between the open.
During the hours at the open and the hours of the close, those bands will be up to 40% All right. So 40% moves. that allows a lot more volatility. So what I want to do is give you an example of the circuit breaker haul.
So what we're going to do is step out of this for one second. we're going to take a look at Cool. This is a stock today that ran from a low of 415 all the way to a high of 622. It ran up well.
It was gapping up 32% and then it ran another 60% So a trader might say, hey, Rossi I ran 60% How many times does it get halted? It got halted Zero times. Just when you thought you understood circuit breaker halts, you realize there's more to learn. All right. So here's the thing.
The Circuit Breaker halt uses a reference price. Now the reference price is based on a 5 the average price over the last five minutes. and it's a 5-minute rolling period. It's not just the last five minute candle, it's the last five minutes.
Alright, so let me let me show you. let's break this down. So now Cool opened here. We had a pre market high of 450.
We pulled back a little bit and then we started squeezing up. Now if I switch this here to a one-minute chart, pull this back here like this. So in the first one minute candle, this squeeze from 416 up to a high of 487 which is a pretty big move. but it's not twenty percent.
Now remember because we're trading in the first 15 minutes, our thresholds are doubled. This is a stock priced above three dollars. It's a Tier two security so it's bands are 10% from 9:45 until 3:30 five and at the open at the close the bands are 20% So if this moves 20% it'll get halted on a 5-minute circuit-breaker halt. However, that's 20% from Where is it? 20% from the low of this candle? No, it's 20% from the average price over the last five minutes.
So here you know, the high of the last five minutes was 449 and the low was 410. So we've got an average price of just about 425. All right. So with an average price of 425, this would need to move 85 cents from 425 in order to get halted.
All right. So that would put us at five dollars and ten cents. We didn't get to five dollars and ten cents. We pull back so we did not get a circuit breaker halt.
All right. Now the next candle start to squeeze up and we move here from 450 up to 550. But again, we're always basing on the rolling period of the last five minutes. So let's say now we're looking at the last five minutes. Let's say at this red candle, I'll just put a line here. This is our mark. This is our mark. Price will mark this here.
So the last five minutes one two, three, four five. So the average price of these five minutes right here. We had a low of 416 and a high of 497. So 497 - 416 is 81 cents.
So the average price is 550 S 456 right around 456. That's our midpoint. all right. So 456 times 20% is 91 cents.
So we need to go from 456 plus 91 cents. We need to go up to 547 in order to get a circuit breaker Hall All right. So look at this squeeze. The squeeze is here up to five dollars, up to five, 30 up to five, Thirty seven up to 550.
So that's really interesting, right? We just got to 550 right here. But by the point. So from here to here, we just hit that 20% But I Remember at this point now we're basing the midpoint price on the last five minutes. So here the last five minutes, the high was 537 and the low is one two, three, four five and the low is 427.
So 537 - 427 is. Let's see. Do I advise. So it's 55.
So 537 - 55 cents is 42. So now this needs to go up 20% from 482 which would be 96 cents plus 482 is 578. So now the trigger is 578. Well, we haven't hit it yet, right? We hit 550.
Now this is what keeps happening. Every 5-minute rolling period, we're getting the midpoint or the mid price. The reference price is being reset and it keeps getting reset throughout the day. So what we need to see in order for a stock to get halted is inside five minutes.
And it's not five minute candles. it's just inside five minute periods. We need to see the stock squeeze up more than 20% if we're at the open or closed, or more than 10% during the day. Now, here's another thing that makes this a little tricky.
Just because the stock breaks, the band does not immediately trigger a halt. The stock actually has to break the band and hold above the top or bottom band for 15 seconds. So, as soon as the stock breaks out of its band, a 15 second timer starts. If the stock returns to trading back within the reasonable bands, we won't have a circuit breaker.
Hall But if it continues to trade outside those bands, the stock will be halted for five minutes. Now during a five-minute circuit breaker halt, a stock can then be halted pending news, so the hall code can change in the middle of a circuit breaker hall. Let's say you get a circuit breaker hall and then the company says, well hold up We actually the stock is running, maybe on a rumor or something like that. We do want to halt trading because we're going to release material news.
You know we're going to say yes, this halt is, or yes, this rumor is real or no, this rumor is not real, etc. So we can have that happen. It happens from time to time. Now, let's look at another example here. So that was a stock that ran 60 percent without getting halted because it just was falling slightly short of the circuit breaker halt thresholds. Alright, and that's specifically because of the five-minute rolling period. If that was based on the midpoint of the last five minute candle, it would have been halted. All right.
But that's not what it's based on. All right. So now let's look at D Ry S. This is the stock that made the crazy crazy move.
All right. So here we go. We've got this stock here. So this is a stock that was halted for a cup for a Ce O--'s halted for a day.
It was a day and action. Well let's see I can see the dates right here. Yeah, it was halted for a day. It was helped for about a day and a couple hours.
So I was halted pre-market and it was halted I Believe it was halted by the exchange They they're like, okay, this stock is $120 a share. We need to halt this and we need the company to respond to what's going on with the stock. So I believe it was halted pending more information from the company and then so pelted by the SEC or by a Nasdaq And then during this time when it was halted, the company did a secondary offering. All right.
We talked about this in our Terms video where we talk about flow all right. So the company did a secondary offering. It's like a second. IPO They sell more shares onto the open market to raise money.
All right. Stock reopens and it reopens a lot lower. All right. And now we're at a point where I'm not sure if I'll be able to go back far enough on my one-minute chart here, but now we're at a point where we're going to see many circuit-breaker halts back to back to back to back.
The stock is just tanking and basically you don't have buyers. all you have are sellers and so what you have is a real in Val once between the buyers and the sellers and that caused the stock to drop very quickly. All right, So you can see right here. So let's back up.
All right. So we opened this candle open at 50 108, 50 108 and it dropped to a low of 45 97 before it was halted. So it basically dropped five points and was halted. It reopens here at $36 it drops to 31, drops about three points and is halted.
It opens lower, it opens at a low of it, opens at 26, it drops down and then is halted Again, we resume and on this one we bounced up and here we get halted. Going back up, we squeeze up. you know about two and a half points and we're halted. So this keeps getting halted.
on 10% circuit breakers, we halt three times. going down. we halt once going up and let's see there was the one halt there and I can see by looking at the timer that this was 10:43 this candle and this candle was 1048. So I know there was a five-minute circuit breaker right there and let's see 54:59 We had another five minutes circuit breaker right here so this was halted at 54 going up and reopens here a little bit higher. So we had one, two, three, four five circuit breaker halts. You know it a period of gosh, when did this resume? It resumed at 10:30 So in a period of about 35 minutes, this was an extremely volatile stock. What's important to know is that when stocks are halted going down, they usually open, lower their halting going down because there's no buyers and if they're if the buyers don't show up, all you have our sellers trying to get out and the result is that the stock is going to open lower. You don't have buyers there to create the bit, stock opens lower.
On the other hand, when stocks get halted squeezing up, there's a very good chance that they open higher. And this is what we were seeing on Dro is. through these halts. we were having a squeeze halt and open higher.
You can see some of these in here. Let's see where's a good one to do. You've got a couple right in here. we squeeze, we open a little bit higher.
it's not the not the best example and Gogi lbs. this one might be a better one. and but when stocks are squeezing go and going up. they usually end up opening higher and so the result.
And here you go. There's there's some good jumps so it just keeps opening high or higher, higher higher. And this is a stock. They literally went from $8 a share to $24 a share in one day, right? So there's huge potential there, But what if you're the guy that bought on this candle at 22 and then all of a sudden it resumes at 16, right? That's when things get scary, so you have to be careful trading halts.
My rule of thumb when I trade halts is that if a stock gets halted, I will trade after the first halt and if it squeezes up and gets helped it again I'll trade after the second halt I Don't trade after the third halt. That's my rule. I trade after the first and the second halt. but I don't go further than that.
That's kind of for me. like trading the first and second pullback. you know. I trade the first pullback on a bull flag I trade the second pullback.
but then I don't push my luck after that. All right. So let's jump back into the slides here. So we've gone through this: you understand that there are some intricacies here.
This is not the most crystal clear type of thing. And of course, if you're in our chat room, I'll be able to walk you guys through this when we have examples in real time. But I also have a couple examples right here that I recorded. So what you're going to notice is that the stock adjust before it's halted.
the level 2 becomes pinned at a fixed price. So when the level 2 is pinned, it's a really good indicator that the stock is about to get halted. We're looking at a Kao which is this level 2 right down here in the the bottom, the bottom corner. Alright, so we're going to watch.
This is a stock squeezing up currently up 30% and I believe we're at 9:30 So we're in the early morning. We've got our larger 20% bands. we just squeezed up. Now we're 50 by 60, 50 on the bid, 51 on the ass. So we know this thing you know, just popped up. It just flash being up I think 40 percent or something like that for a moment. But remember, it has to hold for 15 seconds over those bands in order to get circuit breaker halts. Alright, so we get just a little bit of a pullback.
So this is the type of stock I'm watching as soon as it pops back over the half-dollar There's the pop over the half-dollar Now we're up to 70, 80, 74 on the bid, 82 on the Ask, 69 on the Ask. So this is one of those ones that I'm thinking the next target is five dollars. Can this move up to five dollars? There's 84 I jumped in. Now we're starting to trade outside the bands.
so 15 second timer has started. See how the price is pinned right here. 5:13 We're about to get halted. See how it's stacked there and pinned right At 5:13 This is going to get halted.
It's going to show a P right here for pause. There we go. We're paused. So we're halted now.
and we're going to be halted for exactly five minutes. So this halted at 30 205. It's going to resume at thirty seven. Oh five.
Exactly Five minutes later. Almost almost exactly. All right. So let's fast-forward this just a little bit.
Alright, so we've got about 30 seconds left now. The high was 5 13 over 5 13 is a potential ad now I jumped into this but I chased it and I've got small size so this is going to be a big winner for me. But I have had trades where I'm holding through a hall with 5,000 or even 10,000 shares and when they open higher the profits, they can just be crazy. You can make a ton of money trading circuit breaker halts if you understand the right entries.
All right. So this should be resuming in about 10 seconds. it will resume like I said 5 minutes from when it was halted. 37 o 1 O 2, 3.
There we go and we're open 5:45 Look at that. Look at that. So on this one I'm just adding I'm like let's just ride this. Alright, but remember, we're going to watch the bands.
so we've got up to a high of 608. We squeezed up. We didn't hold up there long enough to get the full halt I added and then I flipped back out. Ended up making $1,200 on this trade.
Profiting just by understanding the stocks that get halted. They've got this imbalance. They're very likely to continue squeezing. so we have the high of 608.
Now when I watch this, you know we'll see what happens on the low. We certainly wouldn't want to see a break below $5 but these ones sometimes are not able to hold up if they are getting just irrationally strong. Let's fast-forward this a little bit more so and this one is actually switched and jumped in Oh PGN Trading a different stock. but I don't think that that one's gonna get halted.
It looks like a Kao is just kind of fading. Not doing much yet. So in any case is you know, $2,200 in 10 minutes of trading? Not too bad. Alright, now let's look at another example. All right, looking at the stock about to get halted. So right now we've got Hm NY that was halted and it was halted at 1204 and something. So this will resume any moment. There's the resumption.
I'm watching this looking to get in I Jumped in right there. 5,000 shares at 66 and or 16 and look at how quickly we just squeezed up. We're 460 on the ask so this was halted and just squeezed five dollars. Next Target Now right now are we trading outside those bands? See the way this is trading.
It looked like for a second we may have been trading outside those bands. so there's a little bit of risk there risk of a of a second haul. And we do see stocks like D Ry s that halt back-to-back-to-back-to-back look at the spreads on this. This one's tough because we're like 490 and then 440.
it's all over the place. so I was able to put out an order up there. Gaile out most my position locked up. 2,000 dollars in profit if you can get over $5 Obviously that would be awesome, but this is a tough one to trade for.
33. By 474, we're up 326 percent today. That's pretty crazy, but as day traders, we love volatility. This is what we look for stocks that are making big moves because this is where we can profit.
So let's see. let's fast forward this a little bit more. It looks like I sold the rest of that position. Little pullback still hanging out there under that five dollar spot.
So we broke over five. Looks like we broke 518. as soon as we broke that level suddenly were 550 on the ask. Anyone who had shorted starts covering.
they're like all right, you know, except two feet I was wrong on this one and all of a sudden, right. we were outside for 15 seconds. And now how The level 2 is getting pinned 62 by 64, 60 to 62 or halted? Now we're going to be halted for 5 minutes. We'll resume at 1218 and about 16 seconds.
So I fast forwarded this right to that point. So now we're going to resume I look to add over 560 whenever I trade stocks out of halts I usually like to add over the high of the hull if we open lower or if we open higher I'll add at a whole dollar like $4 the way I did here or sometimes I'll add. you know, at the half dollar of like 450. Now we're still having an issue with fairly big spreads on this, which does make it a little bit more risky, but this is fairly similar to what we saw on Dr.
Ys. there's 67, there's 70, 72 on the ask, 61 on the bid at this point. I'm up $4,600 on the day. So I'm not being as aggressive to buy this really high just knowing how quickly it could drop back down to 520 with 4,000 shares.
I'd be down $2,000 It's not hard to give up half your day being too aggressive in the afternoon, or you know, a lunchtime. we're up four hundred and forty percent in one day for thirty five on the ask. That kind of thing happens when someone who's short just presses the market order to bail out and you know suddenly you get this spike up to the next level. But in this case, this stock. you know we're looking at the 5-minute rolling period, right? So we're looking at the price over the last five minutes and if it doesn't exceed 10 percent, then you know we're not going to get halted. So it just continues to look at the last five minutes. Actually, this one, this one may have been under different threshold because of the fact that it started below $3 That's actually an interesting, interesting question. I'm not sure at what point the rule changes say a stock you know opens under $3 What point does it cross over to changing thresholds? I Don't know if that happens midday or if that happens only at any time during a day.
All right. So here we have: CD RB This is up 33% and it's currently halted. It was halted at 10:00 22 and 24 seconds. So to resume 10, 27, and 24 seconds.
So fast-forward this a little bit. All right. So as soon as we resume, the highway 625 625 would be a possible entry. So I've got my order at 6:30 right now.
resumption is there. So we open a little higher, end up opening high. We've got a high of 660 and now it's kind of like are we going to see buyers just pour into this and are we going to squeeze? or are we going to see this rollover as soon as I See that bid there of 55? That's kind of the thing that I look for. That tells me that other traders are looking at this too.
So now we're 84 by $7.25 spread. Not ideal. So there's 704 717, 732 So you can see this is moving up. But at the same time we've got these big spreads and you know it's certain point here.
we're going to get close to the outside of those bands, right? So it's six Sixty or six seventy. it's about, you know, 60 cent 70 cent band. It needs to hold outside of that for 15 seconds. So every one minute candle that closes the reference point when these are moving quickly is going to move up quickly as well because the average price of the last candle is 675 so it's going to keep moving up.
That means stocks really have to be extreme in order to get halted. so this is very light volume. you know, 717 by 726 right now I've been watching it, haven't taken a position on it. Little fast-forward this a little bit, see if we pop up for another halt.
So this right here is forming a flag on the one-minute chart. We've got our bull flag, the big flagpole. the candle is coming back. So this is one where I would say well over seven dollars.
You know we could get an opportunity, possibly a break, but you know the more it sells off here is it starts to fill the gap. Coming down, it just becomes broken, especially as it breaks that moving average which is really more getting into both flags. But in any case, it's good to know that so this one's this one would be out of play for me. Now as many of you guys know, we had: Black Monday this was August 24th, 2015 Black Monday Round two: There were over 1200 circuit breaker halts when the market opened. It was pretty crazy. So the market tanked thousand points causing circuit breaker halts on the way down. and then as stocks popped up, we had circuit breaker halts going back up. There was so much volatility, but you know it actually could have been a lot worse if we didn't have those circuit breaker halts.
It could have been a lot worse because I mean the market was just. it was completely tanking. So these you know are there to really to help reduce to help reduce risk, to help reduce volatility so that when we have bad days they're not going to be. You know they're not going to be as bad as you know as they could be.
So let's go back here. let's see if I can go back Shea might not be Oh I'm out of five minutes sharp. Just say. Alright so let's look at the daily chart I Just want to show you this and every stock.
I mean you know from Facebook I mean every single stock was halting I mean these are stocks dropping. You know Tier One stocks dropping five percent and getting triggered on these circuit breaker halts. so let's see where we know. So on this day right here August 24th The market just absolutely tanks.
I Mean you can see this is we dropped from 196 here on the spy all the way down to the low of 182. That's a heat that's a huge huge drop in one day, but you know this candle ended up being. It ended up being a bounce. we drop down and then we popped right back up.
and I think that's thanks to the fact that we had those circuit breaker halts. Traders were allowed to pause think about what was going on. Some of them realized the selling was overdone and then we were able to. In between one of those circuit breaker halts, momentum shifts and all of a sudden buyers start to come in thinking you know what? I can get these stocks on discount right now they just drop 10 percent.
I'm going to come in I'm going to buy them up on discount and look, we got this big pop over the next. Even over the next few weeks we got 10% move off those lows so that was a quick 10 percent bounce in major indices and in Sp500 stocks. So this is you know, circuit breaker halts for us is something that we deal with primarily with a low price stocks because that's where we see it the most. but these also exist for the high price stocks, for the tier 1 stocks and even for the entire exchanges.
Alright, so you know this is one of those ways to try to prevent risk and you know, reduce the the chance of having the market drop. You know 2,000 points in one day and that's important. You know, the so many investors and traders, we have a long bias. You know we buy stocks expecting them to go up. You certainly don't want to have the risk that a stock can lose 50 percent over the course of five minutes because somebody puts out a giant order by accident, right? And I think as it turned out, that was not the cause of the the flash crashes that we scene. but they weren't fat-finger orders, but it was like algorithms that went haywire. But in any case, I think it's still a good security measure to have. And the cool thing is that as traders looking for volatility, we found a way that we can profit from the circuit breaker halts.
So you know when we see a stock that's halted, it pauses. It gives traders a chance to catch up on what's going on so we can jump in and get a piece of the action. All right guys. So I hope this has helped you understand circuit breaker halts I Know it can be a little confusing if you have any questions, feel free to ask me either in our chat room, in the comments or by email Ross at Warrior Trading Comm Hey guys! I Also want to remind you to subscribe to our YouTube channel.
you can click by subscribing. that way you can get alerts when I upload new videos like my teaching you had a day trade video or the video right turned a thousand dollars into eight thousand Six hundred dollars in one month. Thanks guys!.
On a circuit breaker halt going up if I have an unfilled order should replace it with a higher price to try to get in quicker.
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I can’t thank you enough for how effective you’ve made learning the stock market so understanding and easy to follow along. Thanks, Ross!
this is the sum of many years of trading summerized in few min vid…well done and thanks for sharing this great tip
how can one know when halt starts
thanks Ross. Another great video
Hi Ross,
I wanted to say thank you very much, and that you are great
What you show in your videos is excellent, very reliable and instructive,
Too bad I do not live in the United States,
And it's a shame you do not have videos of your work in life trading, these are only after trading, but everything is fine,
I love your work,
I wish you a lot of green and a lot of success,
You deserve it.
Keep on rock'n on a freeway 🙂
Hi Ross, would the halted time (5-10min) be counted for the average price of the previous 5 min? (for instance, a stock was halted at $5.5. After 5 min, it resumed. Will the stocks be halted again when the stock open at 5.5+10%?+holds throughout the threshold period).
Also, the threshold timer begins when the stock price goes over 10-20% for >$3 stocks. Would the timer reset once the price drops back to the threshold and pops up again?
Last but not least, any tips for us to calculate the avg price of the previous 5 min price?
So frustrated about it.
Btw, love your video a lot. Thank you
Hi Ross, Thank you for your generous information. I noticed during your trading that you predict the halt right before it happen, is it something you do mentally or you use any indicator to predict the halt? Thanks
Hi Ross, just signed up for the chat room and couldn't be happier! Have a question I've been trying to get an answer to about volatility halts. You touched on it in this video, hopefully you can expand. You always seem to know the price at which a stock is going to halt going up or down when it is experiencing volatility. When you say it is pinned in the level two, is there a certain gateway I should be looking for? One time I noticed it was one cent below "CDRG"? If I can Direct me to where I can find more information, I'd greatly appreciate it. You're a legend! 👊
Fantastic again Ross thank you and so much appreciated you making these videos! Upon finding a suitable stock halted and bearing in mind your 'rule of thumb' to ideally not trade past a 3rd halt if squeezing up, what is the quickest and/or easiest way to check how many times it's been halted prior if any (e.g. history of Level-2) before jumping in the opportunity?
Thank you always for the great video. How do you scan for halted stocks if you are not already trading it or have trade ideas that have a news feed for halted stocks
Excellent Video!!!!
Wow, I just watched this video for the first time. Great content. You are a great teacher. Hands down.
Definitions in google say penny stocks are anything under $5 my broker has a limitation on penny stocks but they dont define them. What are they by actual definition? Under $1?
Hi. How we can judge before the stock hault?
For DRYS case, can we do 'short' right before and after 1st halt? It needs early indicator to do it before consuming all 15 second delay.
Merci pour ton enseignement celui-ci m'aide vraiment .
Question, during a halt, how do you know if a stock will re-open up or down?
how do you find circuit breakers if you have a video already can you fwd the link please !
Thank you so much for sharing this video series! I'm looking into purchasing one of your courses in the near future.
Is your chat room open to anyone?
Stupid brain can't compute 🙁
hey Ross thanks for this video just made $0.46 a share on AKG after circuit breaker Hult
Awesome video !!!! great examples.
Hi I see you are using a pc. I have been using a mac for last 20years. Do people use mac for trade?