AMD Trade on Jun 9, 2021 09:45 from tjmiller2001: Tradervue User Stock Trades.

I had charted a Used 3 Hour Demand Zone at 80.69 for AMD. However, looking back on this zone, I don't think it was a valid level because the red 3h candle that proceeded a green 3h candle was part of a downtrend. The red 3h candle was not a period of consolidation with a small body. Also, the size of the body of the green 3h candle that followed it was not abnormally large. This was not the strongest zone.

From 9:36 to 9:43 there were 8 straight red 1m candles. A green candle right above demand showed me that sellers were losing strength. At 9:45 I was given more confirmation of a reversal with a green candle with higher volume. I did a fantastic job entering before this confirmation candle even closed, acting quickly. Recently, I haven't been caught freezing on a buy order, I see something I like and quickly get in.

I got in at 9:45 with a 3:1 RR. I think I did a good job entering with the appropriate amount of confirmation.

At 9:48 the position had pulled back to the zone but not hit my stop yet. I wrote that I was, "Not confident in position but staying because demand is holding."

At 9:49 I was stopped out on a break under demand. I considered getting short but chose not too bc AMD was right above a support trendline at this point.

Lesson Learned: When getting long on a demand bounce, set my stop close and right under the demand level because a true demand bounce should start working in my favor immediately. A pullback to retest that level or consolidation shows a lack of buying strength. Be comforted in the fact that you can always reenter when/if it starts to bounce off that level again.