Shared by
tombro
Flag, 49.28 entry, Stop 48.99, 1st target 49.90
Crappy loose trade with hints of FOMO. Again-didn't study Daily chart for clues.
Ideal entry was probably 49.10 when it broke the morning Downtrend pullback by bouncing off the 9ema
•My entry: yeah it seemed like the 9ema was pushing it up creating lower lows
•BUT the nature of the price action of the previous 4 bars (wicks higher & not moving above 4.30 area)suggest there may be a seller in this area. Also none of those bars could close over VWAP.
•The area of my entry corresponds to the low of the 12/4 gap up day and nearby highs of 11/28 (a gap up day) and 12/1
•My 1st Target was right at High of day 49.90. The stock gapped up on open, moved up .10, then at 9:31 was met with selling-driving it down over $1. So placing 1st target right on the High, vs somewhere below, is faulty
•The 49.90 High of Day is near the bottom of the Dec 5-8 area it gapped down from yesterday, on the daily
Also, on the Daily - the last 10 days have 3 gaps (2 up followed by 1 down)
With all the above notes: I need to be especially careful on a situation like this, and maybe avoid it altogether
The best trade on this stock was the 1-2-3 at the Low of Day, for the same amount of risk
Live n Learn
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-12-10 10:17:48 | AAL | buy | $49.270 | long |
| 2014-12-10 10:22:26 | AAL | sell | $48.990 | 0 |
Comments
Nape_BOWS
tombro
Nape, do you think the 6:55 bar break of the morning pullback could be a valid entry, or has it pulled back too fast? Or is the 11:20 just a really better trade cuz Its a 1-2-3 setup, price has had a chance to consolidate and tighten, with the ema's coming up close to price, the price rejection off the 20 ema, and the chance to enter with a lot less risk than the 6:55 bar trade mentioned at the beginning?
11:20am is the better trade IMO because when it got back over its ema's; notice it pullback to the 20ema and bounced creating a nice base with the ema's coiling up under it. You have a well define stop now with positive price action.
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I agree a better entry would've been right when it broke it's downtrend, but your risk was managed and it wasn't catastrophic. Don't be too hard on yourself. Your analysis post trade is good and I think you're learning from your mistakes.