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Driver42_BOWS
Bulls watchlist that went up before a pullback to the 20ma sucked me in.
It bounced with good volume but only by a few cents and then stopped.
Sideways for a bit then down through the 20ma on a big volume candle and stopped me out.
As it was speculative I should not have entered with the size I did and so I suffered a larger than normal loss. Nothing major but too much non the less
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2015-04-10 11:19:03 | PSTR | buy | $6.220 | long |
| 2015-04-10 11:19:03 | PSTR | buy | $6.220 | long |
| 2015-04-10 11:19:03 | PSTR | buy | $6.220 | long |
| 2015-04-10 11:37:14 | PSTR | sell | $6.020 | long |
| 2015-04-10 11:37:14 | PSTR | sell | $6.010 | long |
| 2015-04-10 11:37:14 | PSTR | sell | $6.010 | 0 |
Comments
tombro
Hey moneymatter49. If it was clearly a bearish pattern, then a short would be in order, but looking at the entry, I'm not sure you could say it was "clearly bearish".
You could say a long is questionable because of: It's really extended for today, Lower high around 10:50, Priced was rejected off the area of the previous high made in February (6.68), it broke the uptrend (or 10am to 10:50 flag)
I know these things can sometimes be subjective, but to me it only became clear bearish around the time of his exit when it broke $6 and the consolidation that had formed before it.
Until then, it could have gone sideways, just like it did on the 7th.
Just my just my 2 cents worth
Forgot to say that at the time of entry it also had made higher lows. that + the lower highs might make more of a case for sideways movement.
moneymatter49
@tombro, it was clearly bearish. You are overthinking it. Trading is simple. This stock went from 4.45 to 6.60ish in less than 1 hour so a 50% move out of nothing...it touched the Feb high from 1.9 in 4 days...so a 250% move...no way to go higher...simple.
Look at the 30 min chart...
Driver42_BOWS
OK guys, play nicely. lol.
Thanks for the input.
At the time I was thinking it was a pullback to the 20ma which I have now included above.
I entered on a green candle thinking of an up move.
As you point out tombro, it was clearly a bearish pattern when I got stopped out.
So Money, just so I understand your thinking, what is the setup and where is your entry?
Hi Money. I had a little time, so I wanted to address your points (because isn’t that part of the deliberate practice Kunal talked about?).
50% move in and hour? It went up 100 % 3 days earlier in 2.5 hours (from 2 to 4). Is that reasonable? Too much? Not enough? It went up another 20% after that without stopping. Then after it ran it’s course..it went …sideways.
It touched the Feb high in 4 days. So what? Who’s to say it can’t go higher…maybe just enough to squeeze all those that think it looks “clearly bearish”.
250% move in 4 days…no way to go higher? How about if there is either something or someone behind this move, and once shorts start piling on, the shorts get squeezed. You say “no way to go higher”, but really, why and how did it go up the way the way it did on Apr 7? Out of “nowhere”
Really, the ONLY thing that is clear from this chart, is that this stock is capable or powering higher for seemingly NO reason.
Regarding “overthinking” as Kunal said, “collect the clues to build your case for a trade. THAT was what I was trying to point out in my post. For someone learning, there are many things to look and lookout for. If you’ve read Marty Schwartz’ book you know he certainly looked at a lot of stuff when he traded
To post: This was a clear bearish pattern: no reason to go long” without pointing out WHY you think that way, really adds very little,
In regards to short trades, I don’t think there is a setup yet, at least not a BOWS setup. It doesn’t fit a Rubberband setup in that it hasn’t gone green to red intraday, or has broken a significant level of resistance (page 90 in my book). It’s not a 1+2+3 because it has not made a lower low (page 136-the last line of the description)
Sorry to unload on you. Your post reminded me of someone who posted on one of my trades, and it was equally not very helpful.
You may be a great trader, if that’s the case, I would bet that you have internalized many of the lessons that many in BOWS are trying to learn. Congratulations and more power to you!
(BTW…If you are not part of the BOWS group, never mind… this entire posting of trades thing and commenting on them is part of our homework and practice)
moneymatter49
@trombo-----I do not have time to answer here, but if you want to have a chat about it, look for me on g +, I will be happy to answer your questions in hangout
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This was a clear bearish pattern: no reason to go long