Shared by
CharliePham
The Big Picture:
The NASDAQ has closed at all-time highs, even breaking the 10,000 mark just briefly intraday. The S&P 500 & Russell 2000 are lagging behind but trending up. Yesterday the market finally pulled back but the QQQs were strong and finished up 0.72% while the SPYs fell by 0.72%. The market is still very overextended and due for a pullback.
The VIX remains somewhat high (27.2), an indication that the bears are not entirely gone. Yesterday we had some selling but nothing significant. The bulls appear to be in charge going into the day.
The Fed will wrap up a two day meeting this afternoon. We often see volatility during and after Powell's press conference.
FED annoucement:
Federal Open Market Committee (FOMC) scheduled today and tommorow for its two-day meeting.
This month’s FOMC meeting will yield a new policy statement, updated dot plot and a summary of economic projections. Fed Chair Jerome Powell will hold a virtual press conference at the conclusion of the event on today.
In addition, there has been recent speculation that the Fed would do yield-curve control (YCC), which is a program to keep short-term interest rates capped at a certain level
Intraday Fundamentals:
Been trading below a resistance level of 57 for a month now. ATHs are at 59.30 and this is the main resistance level to look out for. A potential play here but will see how the stock reacts after market open.
Still a decent play as has shock value to break above a significant level.
ATR: 2.14
RVOL: 1.08
AVG Volume: 73M
Short float: 5.30%
Well done: I sticked to my plan. Price hit 59 and i saw this was a strong resistance level ,in my mind i really wanted to get out with a small win, but i just have to stick to my rules. My exit management is 2:1 all or nothing and as i have already put on the trade i just have to take the loss if it happens.
Improvement Notes/Mistakes: I did a huge mistake on this one, mainly because i "rushed" this trade. I did not look at the daily chart before placing the trade as it had way too much overhead resistance to be traded on a breakout pattern. This trade was only good to trade if the range was smaller, or if it broke out/formed at the 59.30 level. But im really glad i took this trade as the main purpose of my early stages is to learn, grow and improve.
What i learned from this trade: What i learned from this trade is if i want to take a position on a stock then i should always have the daily chart of the stock open. I did not have it open here and that is why i took a Loss.
Confirmations -
1: Forming at POC
2: Forming above VWAP
3:
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-06-10 10:00:00 | AMD | buy | $58.480 | long |
| 2020-06-10 11:00:00 | AMD | sell | $57.900 | 0 |
Comments
CharliePham
@Techoptions - Thanks fam!
Really appreciate the feedback - gave me great insight on why the pattern broke down. If there is anything else you can see me improve on then ill be glad to listen.
Im starting to understand the importance of daily pattern for intraday setups - thanks for letting me know exactly why it failed!
TechOptions
absolutely, even day trading or short term scalping "Which is my bread and butter" You still need to put things in context by looking at the daily and seeing what candle is trying to print. You also want to wait until you have time continuity on your side. Meaning you ideally want to see several time frames telling the same story before you enter a position. I trade off of the daily, then have the 15 min, 5, min, 2 and 3 min charts open as well. If all charts are pointing to go then your probability of a successful trade goes way way up. And always be hyper aware of key support resistance levels. Its far better to wait for a stock to breach a key level before you enter. try that and watch what it does for your results.
Thanks man! Really nice feedback - Its those small nuances that differenciates a breakeven trader from a consistently profitable one.
I am alone in this trading world and its nice to havesome experienced and knowledgeable to talk too. If you have a discord i would love to chat and gain insight from you
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as long as you are learning from mistakes thats all that matters. But here's a tip. When you see a long green candle after a sell off then a short candle this is what is happening. That green candle is cause by shorts covering and taking profit off of a decline or pullback. The problem playing this set up is they hardly ever work. and here's why. In order to see a rally we need new money coming in. When you have that long candle followed by a short candle what that tells us is new money is not coming at that level with enough volume to punch. The stock usually 9 out of 10 times putters out and pulls back again. Basically you bought a top right there. But just to give you some insight on why that setup broke down on you.