QLYS Trade on Apr 24, 2020 10:49 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• 195m Chart: Uptrend, Consolidation below recent ATH.
• TTM Squeeze: 195m / 4h
• Earnings Date: 5/7*

Reason For Entry:

• Playing 195m / 4h chart. QLYS is in a pattern of consolidation below its ATH. TTM in a squeeze and it also has earnings in a couple of weeks. Looking for a run up to earnings. Price entered buy zone (8ema) and order filled for 1 contract and risking 2% of portfolio. 4/28 price slowly dropped to the second and final buy zone (at 21ema) and order filled for 1 contract. In a full position and risking 4% of portfolio.

Reason For Exit:

• I scaled out of this one in 2 lots. First lot was that the stock looked heavy and was consolidating below the confirmed support area (8ema). Second lot was due to the pattern failing and TTM firing short. Closed the trade for a 1.75% portfolio loss.

Recap:

• The setup was valid and entries were at the correct levels (21ema and 8ema). Pattern simply failed and took the loss. It was a valid setup, took a shot, it failed and took the loss. I would have taken this trade again a week from now, these setups are my edge and will continue to trade them as I know in the long term I will be profitable. Position sizing is key though, and these were a little more expensive options. Something to keep in mind on future trades for now.