SNAP Trade on Jun 8, 2021 11:23 from tjmiller2001: Tradervue User Stock Trades.

SNAP opened pretty weak, falling from 62 to 59.30 in less than 2 hours. I was watching for buyers to show strength at a 2 hour demand zone from 2 weeks ago. This zone involved a gap up the next day.

A steep selloff from 11:19-11:21 was followed by a high volume green candle and I entered at the beginning of the next candle. I had a 3:1 RR. There was a 2 Hour Demand Zone with a gap at 59.28 that made me interested in the trade.

The trade started working in my favor relatively quickly and now my focus was on the trade management. I didn't want to sell too early, but I was aware that this name had been weak all day and there was a decent probability rallies could get sold into.

/ES and /NQ were bouncing as well, so it was good to have market backing.

At 11:33 I was watching for weakness in /ES and /NQ to foreshadow a SNAP pullback, that hadn't happened yet.

I kept moving my stop up, placing it under the consolidation zones of recent rallies.

At 11:38 I considered an early exit because /ES and /NQ were pulling back. I decided the strength of the market pullback was not strong enough to invalidate the trade thesis.

At 11:43 I moved my stop tighter because SNAP had been showing relative weakness for the past few minutes. I think this was a smart decision.

At 11:49 I noticed that SNAP was facing resistance at 59.93, I decided to try and sell there. Next time, I shouldn't look to get filled on a wick up to resitance, but instead a few cents under resistance. That has a higher probability of success. Trying to overstay my welcome, fishing for a few extra dollars at resistance, could lead to lost profits when a steep rejection occurs.

At 11:51 I sold after a giant red candle rejected resistance. I did a good job selling quick and accepting lost profits.

Lesson Learned: A volume spike at demand or supply is likely a sign of institutions stepping in and changing the direction of a name. Size up when you see abnormal volume on the 1m chart at a supply or demand zone.