AMD Trade on May 25, 2021 15:04 from tjmiller2001: Tradervue User Stock Trades.

AMD was getting tighter inside a symmetrical triangle from 1:30 to 3 PM. I wanted to get long at the bottom of the wedge because my stop could be tight there.

I don't like trading breakouts so I didn't want to get long on the break of the wedge. However, that may be a strategy to add in the future. I had a long bias because the triangle broke to the upside around 14:56 or 2:56 then pulled back. Since higher lows and higher highs were being made, I felt that an entry at the bottom trendline gave me a good RR with a tight stop.

I got long at 15:04 with a great fight for price. My RR was 4:1 which I like. As soon as my level broke, I did a good job getting out quickly. Low emotional attachment to the position. Happy to take a $1 loss when the potential reward was much higher than $4. Good entries and exits kept this loss small.

Once I become more familiar with symmetrical triangle trading, I could get short when the bottom trendline breaks. Here it would've worked to watch the break, then get short when price retraces halfway to the trendline with a stop right above the place price broke down from. In this specific example, VWAP was slightly above which could've acted as resistance also. For less risk but a smaller likelihood of an entry, I could get short right under the price of the initial breakdown with a stop right above. A compromise would be to scale in to puts between the 1/2 retracement and the exact level the drop started at.

Lesson Learned: Fight for price to keep losses small. This is an ideal loss, I cut the loser quickly.