ATO Trade on May 11, 2020 15:01 from gbrukh: Tradervue User Stock Trades.

Picked on the Radar App for trading on close. Liked it's ATR.
Inst Own 87.70%

Short Float 3.77%
Avg Volume 1.07M
Rel Volume 2.4 (as per radar app)
ATR 4.24

S1 zone 96.98 - 97.04
R1 zone 97.40 - 97.60

Trade Idea
The company reported mixed earnings and initially trended down during the first 30 minutes of trading. The overall move down was about 2%. After the initial selloff the stock was consistently in the uptrend. It traded above VWAP starting 10:30 and to the time of analysis (about 3 pm). At 14:28 the stock descended to its VWAP level and immediately bounced back. During the time interval 14:30 - 15:00 the stock established a series of higher highs and higher lows. At 15:00 the stock traded just above its support line S1. I bet that the uptrend will continue. Entry price 97.08, stop-loss 96.94, target 97.50, R/R = 3.5

Action
I remained in the trade for about 30 minutes. During this time the stock didn't move at all, but just consolidated around 97. At 15:28 I noticed a huge volume spike (see Fig. below) on a red bar without any significant price movement. I aborted the trade on the next price bar for the following reasons:
1. The consolidation was taking suspiciously too long into the close
2. 8-10x volume spike without price movement means that I don't see what is coming
3. The trade became choppy with gaps between the closing of the previous bar and open of the next bar, so I didn't trust that my limit-stop-loss order would execute. For the same reason I didn't want to change it to market-stop-loss.

Conclusion:
- I shouldn't have entered the trade in the first place for the following reason: The stock went down from it's daily high of 97.6 to VWAP level of 96.4 and then did a 50% retracement to 97.0. This retracement was complete by 15:00 and there was nothing left of the upward movement. Next time will pay better attention to technicals.
- I did the right thing aborting the trade.