AMD Trade on Jun 15, 2021 10:00 from tjmiller2001: Tradervue User Stock Trades.

AMD had a 30m supply zone at 81.60 from 2 trading sessions ago.

It opened near that zone and sold off for the first 10 minutes. After reversing higher from 9:41 to 9:56, it rejected supply with a large red candle. I didn't want to chase the move so I waited for price to come up a little bit to give me a better fill on for what I expected would be a next move down.

At 9:59 I wrote that "AMD feels heavy, wanting to fall after 9:57 drop." The heaviness I felt ended up being incorrect in the short term but correct for the rest of the day.

I was filled at 10:00 with a 3:1 RR. I like how I avoided chasing an entry here.

At 10:03 I wrote: " /ES and /NQ now weak which should help. I don't want to hold this during consolidation, I am moving my stop from 81.65 to 81.57 (recent 1m chart high)"

Looking back on that, I think that was a smart decision. This was a trade that I wouldn't want to hold during a consolidation period but giving it a little bit of room managed my risk and protected me from an early exit.

However, after I canceled my 81.65 stop loss to replace it with the 81.57 stop, price shot up at 10:04. I struggled to get filled on the way out. This was a late exit. Pretty bad timing with my order cancellation but this isn't an issue that will occur often.

After exiting, I considered a reentry but wrote that, "Don't want to reenter AMD short bc of consolidation at supply, would need to see relative weakness under VWAP." Since AMD was near HOD while the overall market was struggling, I felt that getting back in short would not be the best use of my capital. This caused me to miss a move down but I stuck to logical rules. More experience will help me know how to reenter short on a name not near supply.

Lesson Learned: Consider reentries on fakeouts into supply then backout. Even if there was previously consolidation, I don't have enough trading experience to say that consolidation near supply always leads to weak short opportunities.