Only buy dips. Use the RSI or Cyclic RSI to estimate with more precision when the stock will start to dip down. At a pullback, the RSI should come back to the middle values range (approx. 55) and, when it comes back to the EMAs or VWAP on the 5 min chart and it still is trading on high volume (look at the tape and Level 2 to verify if there is volume and the direction of the stock), then make an entry => solid chances of getting a good trade.
Good first and second exit trades at the resistance level as the stock showed weakness when approaching the previously tested resistance level (volume is really high = ending volume).
There is always high ending volume at the resistance levels but not necessarily at support levels. When we see such elevated volume, it is a sign to exit the position.
Important: Let the candle close before exiting the position. It doesn't reverse immediately; it takes time and the ending volume bar often closes near its open.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2020-10-28 10:54:32 | DGLY | buy | $2.460 | long |
2020-10-28 11:05:49 | DGLY | buy | $2.395 | long |
2020-10-28 11:43:30 | DGLY | sell | $2.440 | long |
2020-10-28 11:58:34 | DGLY | sell | $2.550 | long |
2020-10-28 11:59:18 | DGLY | sell | $2.510 | long |
2020-10-28 14:44:33 | DGLY | sell | $2.530 | 0 |
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