AMC Trade on Jun 10, 2021 12:15 from tjmiller2001: Tradervue User Stock Trades.

AMC has had a crazy run from 12 to 72 these past few weeks. It's well below that high of 72 but I've been watching it's reaction to demand zones formed recently.

A clean 30m Demand zone was formed on 6/2 and then it held on 6/3 when tested. I wanted to see how price reacted to it on 6/10.

After consolidating near $50.00 for the first hour of trading, AMC made it's way downward towards Used 30m Demand at 40.45. I wanted to watch how price reacted to this level.

At 12:14 I saw a candle at LOD that had more volume than any other candle, even the ones near the open. This was strange and this kind of volume signaled to me that the move down was exhausted and there was a decent probability of a reversal higher.

At 12:15 I entered shares with a 3:1 RR. I avoided options contracts because the premiums were very high on this name. The options contracts I likely would've chosen ran from 1.20 to 2.00 from 12:15 to 12:45. I knew I wouldn't make much money with just 1 share if I was right. Taking this trade was more about practicing the SD strategy than it was about making money.

At 12:21 I moved my stop up because the way AMC struggled at $42.00 whole number resistance on the 1m chart. At that time it was possible the name was putting in a lower high on its way back downward. Moving the stop was smart but avoiding making it too tight was smart given the high volume candle at 12:14 that supports a reversal.

Consolidation got tighter from 12:25 to 12:29. This was followed by a strong upmove for the next 4 minutes.

At 12:31 I moved my stop to be right under 42. Since there was strength from buyers at 42 at 12:30, I felt that if price broke below 42.00, that would mean those buyers aren't strong anymore, which would mean an exit is appropriate. I think moving my stop based on this was logical.

I set an order to get filled at my PT of 44 but this order was not filled at 12:41. In the future, it makes sense to set orders just above or below whole numbers. For example, it is logical for buyers to step in at 43.00, so my stop loss on a long position should be at 42.95, which would only stop me out if buyers didn't get strong at 43.00. If you get set a stop loss on a long position at 43.00 it is possible that you get filled at 43.00 then price rallies back up after touching that whole number support.

For my exits, I should look to take profits at 43.95 instead of 44.00 because it makes sense that shorts would enter at 44 or buyers wouldn't be eager to get in at 44.00.

At 12:45 my trailing stop was triggered at 42.95 on a break under 43. This was an effective trailing stop loss. It gave the trade plenty of space but didn't allow me to give back half my profits.

Lesson Learned: Don't try to get filled at whole numbers. Instead set TP and SL levels right above or below them to make sure you aren't wicked out or looking for too much of a move.