TW Trade on Jun 19, 2020 13:19 from tradelikelarry: Tradervue User Stock Trades.

Trade Planning:

• Daily Chart: Uptrend, Consolidation below its ATH.
• TTM Squeeze: Daily
• Earnings Date: 8/5
• IV: 48%
• Potential Profit: $225
• Potential Loss: $275

Reason For Entry:

• Playing daily chart, Put Credit Spread. TW is in a pattern of consolidation below its ATH. The TTM has been in a squeeze for 6 days now and price action has been honoring the 21ema. Risking 1% of my portfolio and watching for TW to make a move to new ATHs.

Reason For Exit:

• TW drifted lower until confirming a strong move below a Fibonacci cluster that I drew up. Out for about a 1% of portfolio loss.

Recap:

• The pattern was correct as price action was consolidating below recent highs in an uptrend honoring the 21ema. My risk was correct which was about 1% of my portfolio. Price action drifted lower until making a strong move below a Fibonacci cluster that I drew up. I then closed the position for a loss of about 1% of my portfolio. These PCS are very forgiving, meaning that the pattern broke a few days before my exit BUT I was still able to give TW time to recover. TW did not recover and I closed the position for a small loss. I will continue to give these trades time to recover in the event I am put in this same position. I will revisit this (time to recover) strategy at the end of the month and make logical changes if needed. On to the next one