/NQ formed a 2 Hour Demand zone at 5 AM this morning. I wanted to get long at this zone intraday if it held.
This was a zone that it had bounced off 4 times in the first 30 minutes of trading. That told me that buyers were present there. However, demand zones get weaker the more times they are touched because institutional orders are getting filled there.
Although QQQ was making lower highs, it was also making higher lows. I decided to get long at 334.80 with a SL at 334.70 and a TP level at 335.40. This gave me a 6:1 RR. My stop was very tight however, which gave me a higher probability of getting wicked out or stopped out while the thesis was still valid.
Instead of waiting to see strength from buyers then get long, my aim was to just get long at that zone and hope strength from buyers appeared quickly after my entry.
I was filled then quickly stopped out 19 seconds later when my stop hit.
Lesson Learned: Wait to see buyers show strength on the 1m chart before entering long. Don't just buy at a level then hope. More confirmation is needed to improve my win rate.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-06-07 10:11:46 | 9 JUN 21 336 CALL | buy | $1.140 | long |
2021-06-07 10:12:05 | 9 JUN 21 336 CALL | sell | $1.060 | 0 |
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