SPY Trade on Feb 26, 2021 15:34 from tjmiller2001: Tradervue User Stock Trades.

SPY was very much in play with lots of volatility over the past few days. Today it traded anywhere from 378 to 385, which is a large range for SPY.

At the end of the day I watched SPY pull back from 384 to 382.50 and start consolidating and holding VWAP. My thesis was that VWAP would hold and buyers would step in until the close. I got long at 382.50 with a 3:1 RR. My stop was a price touch of 382.25 not a 1m close under that level because these were 0DTE contracts and I wasn't comfortable with trading such a volatile instrument.

I got stopped out on a tick down then price moved up over the next few minutes.

I was watching the 9 EMA, which had been acting as resistance. Once that broke to the upside and held, it was clear that the character had changed.

I got in long with my stop below the low of my 1m entry candle. This was a momentum trade and any consolidation or downtrend would quickly stop me out. Price didn't look back and ran from 382.75 to 383.5 by the time I took my exit.

I got out for a large $47 gain when I saw that SPY was overextended from it's 9 EMA. I traded my P/L here, not the chart, I traded with lots of emotions. I wanted to protected my gains so I got out. This would keep it's momentum upwards, with my contracts running another $110.

It's easy to look at this in hindsight and say, "I should've waited for a Reason2Sell, like a lower low on the 1m." But this wasn't even a trade that wasn't close to being within my comfort level. These contracts move so fast when they expire in 15 minutes. I can't yet handle the emotions that come with 0 DTE contracts this late in the day.

I'm proud of myself for cutting my loss fast on the first attempt and for entering when I saw a trend change on the second attempt. Eventually, I'll be able to trade 0 DTE SPY contracts without being so tense.

Playbook for a momentum scalp trade: Wait for a change in character on the 1m, like something breaking a 9 EMA that was serving as resistance. Be decisive and enter long with your SL as a lower low on the 1m chart.

Lesson Learned: Be willing to commit to an entry when your stop is tight, especially with momentum plays that will move away from you quickly.