Shared by
gtichauer
RDR - Buy vs LOD
Open Type - Inside Day after Day2.
R2T - RS prev day and today as most stocks opening with Gap Down. T&F L1 for a RDR play.
R's / MFE R's: -1R ( 0.2R MFE )
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Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2020-09-24 10:09:17 | TWTR | buy | $44.010 | long |
| 2020-09-24 10:21:32 | TWTR | sell | $43.520 | 0 |
Comments
Dmitrij_Vasiljev
just to add - you need to consider big picture: what's happening for the past months, week, 2 days, etc., and not just 2min chart bull flag which is obviously bull trap.
gtichauer
Hey man. Tks for taking the time to leave your feedback. I am sure I have many areas of opportunity to improve.
The reasons I thought on going long:
- I traded TWTR the day before and it showed Relative Strength and BIG RVOL, so I expected it to test and hold Prev Day Low, AS MOST OF THE INDEXES AND TECH LEADERS DID. This is what I refer to RDR (Red Dog Reversal by Scott Redler).
- This day also opened with Rel Strength as most index and comparable stocks Gapped Down, while TWTR inside day.
- The LOW of a very high RVOL like the day before, tends to act as support. I expected it to hold, so after it tested it, I entered on CALCULATED RISK on LOD. Small risk, high reward. Not always works....but hey.....that's trading.
- I am SURE I make some mistakes over and over regarding money management, not letting winners ride, moving stops to quick and more......but if you don't understand the way I trade, not sure if I should consider "mistakes" not looking the markets the way you do.
Many traders use prev day low as a level to go Long.....that is 99% of the time going to be below VWAP......so it's that a "bad" trade? is that a "sign NOT to go Long" ?
Believe me I DO watch the bigger picture....that is way you see a DAILY chart on my review.....I just expected Prev Day Low to hold on a super strong stock the couple of days before on a creazy markets where stocks have crazy runs.....did not work.....small acceptable risk.....I move on.....
Thanks anyway for sharing your thoughts.....appreciate it. Always learning.
just to add - Had TWTR opened inside day but on the Upper Range, I would have expected prev day Support to hold and then go Long with stop below.
https://www.screencast.com/t/ICBPS6KN3Tkz
Dmitrij_Vasiljev
hello :)
can you elaborate on what you mean by relative strength?
I mean, you're not wrong here. It almost held that potential support, but it punctured and went to 42-42.5, right? It just stopped out many longs who placed their stops at 44 :)
What I'm trying to say here is that, yes, your logic kind of makes sense. But, I still think you're missing big portion of bigger picture. Consider long-term resistance at 47 and the fact that many longs entered at 43 breakout under expectation that 47 is going to be their exit, right? Breakout of 47 failed, next day sell-off and profit taking.
I'm not entirely sure, and I would not expect stock to bounce back when there's enormous selling pressure due to the fact that 47 resistance breakout failed (+ after hours / pre-market gap down, and morning puke). Maybe this is something for you to consider, if you want rational what I'm saying.
I also looked up at RSI and how TWTR reacted previously, and it seems like it likes to pull back on 75 area - recommend you to look at overbought levels.
Hey man. I checked some of ur trades and I dont see any similarity in how we both trade. Not at all. So the only thing I can think of given your recommendations and lack of understanding of what Rel Strength means, is that you dont have many years into this. Specially given your nice attitude toward trying to convince me to look things how you do. Like using RSI. Have you noticed I do not use RSI, MACD or any other lagging indicators besides MovAvg ?
By Rel Strength I mean TWTR opened Inside Day when SPY/QQQ and other Techies opened below prev day range. Added to that, the day before TWTR had +5 RVOL. You should research on RelStrength. It's a great tool to select stocks.
For the rest of your comments and missing the big picture, regarding $47 level, Profit Taking, Longs trapped, etc.........it's ok and I really appreciate you giving your point of view here, but if u dont know what kind of trader I am, what are my timeframess, targets, expectations, risk levels, risk reward aiming.....you are missing information to give a right advice.
My entry was at 44 with 0,50 risk and a 2:1 target.....so $47- may not be even on my radar. I just played Prev Day Low holding on a strong stock for a 2:1 move. That's it. I do not need to consider last year resistance at $47 nor RSI on daily. It's a simple setup that you can see it works on MANY stocks everyday.....just not this time. No need to overcomplicate things.
Here you have an example of a strong stock that tested succesfully Prev Day Low and run off......https://www.tradervue.com/trades/18043235
In that case I got long later above VWAP, but the same rational applies to TWTR.....I just tried to catch the first move.
Dmitrij_Vasiljev
all right :) all the best to you :)
Again I am really thankfull of you taking the time to leave comments to help. That is how we grow as traders. Sharing.
Just take into account trying to understand if your advice is in line with the traders approach.
And also we have to embace losses as traders. They are part of the game. So sometimes you do everything as expected, and you lose. That's it. No need to dig deep to look for a reason. You wil never win all trades. If you trust the setup, time will tell you (or backtest) if it's worth keeping it in your playbook.
Thanks and good luck man.
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i don't understand, why did you decide to go long?
you have all indicators not to go long:
- 15min chart showing consolidation and breakdown
- big volume on sell-offs
- price below VWAP/SMA
daily chart is showing you that stock broke out of september resistance, but gapped down next day and has been retracing back to the support (which previously was resistance).
i checked few of your trades here, and you keep making same mistakes over and over. if you want to stop, you need to start looking more serious review.