ANCN Trade on Mar 8, 2021 09:43 from Jrow3: Tradervue User Stock Trades.

Trade Idea:
- Not the most ideal flag setup given it was not making fresh highs and had consistently fallen off since its PM highs which occurred at ~4:17AM
- This stock was the leading gapper of PM
- B- setup as the flag was testing OH descending resistance

Risk Management:
- Risk: 5.67 hard SL but knew I would sell at 5.75 if it failed below without showing positive expectancy in regards to immediate momentum after the 1min high
- Reward: $6.00 TP

Position Sizing:
- I risked $0.16 but took a position which allowed for $0.18 of loss per share due to the fact that this was not an A setup. Practice in keeping my best trades the largest.
- I also would have cut at $5.75 but $5.67 was my ultimate stop in case it flashed quickly below that .75 level.

Trade Management:
- The trade had solid resolution off the bat and successfully broke $6 but as it did it immediately broke below. This was a function of the descending resistance it ran into. As it did not hold above $6 I put an order on the ask which happened to get tagged at $6 as it made a micro push before selling off. As it sold off I took the rest of my shares off at $5.92

Final Thoughts and What I learned:
- I learned that drawing out and understanding where descending/ascending S/R lines would be is key for the construction of sound trade ideas. I knew that this one would likely run into that resistance as it tested $6 so I was prepared for the false breakout that occurred. If I had not drawn out that line then I would have been less reactive and ready for the breakdown which occurred. It also highlights why flag setups are not equal and that flags which are pullbacks from HOD have a higher expectancy. Finally, false breakouts should be recognized quickly and exited from because the reaction tends to be violent which we saw in this example. I was profitable because I anticipated the possible reaction and cut without hesitation.