Shared by
EL_BOWS
I remember just watching DDD yesterday on a similar setup. Rejected for the 3rd time at 54, crossed through both MA and broke the level of support.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-05-22 13:00:43 | DDD | sell | $53.650 | short |
| 2014-05-22 13:16:51 | DDD | buy | $53.870 | 0 |
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Yeah, it looks like it was a good setup.
Only thing I can offer is that it seems really common to see a double candle push through the MAs and then come right back, usually just before a continuance of the trend. (By double candle I mean a green candle followed immediately by a red candle, where the red one retraces the entire green move - or vice-versa).
I play more shorts than longs, and I see these all the time on down-trends when I have an open short position. I used to get faked out by them, but learned that if a candle pokes through the MAs, I need to wait, because there's a good chance the next candle will come right back inside the MAs again. The same is true on when to enter - you might want to wait until you see at least 1 candle fully past the MAs before considering it as a breakthrough.
Of course, it's hard to wait, because if you're wrong, then you could have a bigger loss. But from your trades, you seem to have patience to wait for things to come back, so you might want to try it next time.