SPY Trade on Jun 15, 2021 10:22 from tjmiller2001: Tradervue User Stock Trades.

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tjmiller2001

 

/ES has 4 Hour Demand at 4236.25. I wanted to watch the reaction to that zone today. That level on /ES correlates with 424.30 on SPY.

After fading down since the open, SPY printed a doji candle with somewhat high volume at 10:07. Then came two green candles. I didn't take this entry because it didn't have enough volume. I wasn't convinced that buyers were ready to get aggressive.

At 10:12 I wrote that I "want to see SPY higher high at 424.60 for entry. Or high volume at 424.30."

I'm glad I set parameters for what exactly I needed to justify an entry. Looking back on that, I think I was focused on the right things.

Although SPY printed green candles from 10:14-10:17 to make a higher high on the 1m chart over 424.60, I chose not to enter because of the decreasing volume. I think this was the right decision.

SPY pulled back from 10:18-10:19 and I was watching here for buyers to get aggressive. 10:20 and 10:21 were green candles with increasing volume. After the 10:21 candle showed both high volume and a push over the key 424.60 level, I decided to get long and I was filled the next minute with a 3:1 RR.

Strength evaporated right after my entry and I was stopped out quickly. Instead of buying something that is slowly bouncing off demand, I should instead focus my attention on the setups that bounce quickly and with high volume near demand, showing that buyers are eager to get in fast instead of slowly work into a position.

Lesson Learned: A sharp drop into demand would likely produce a better bounce than a slow grind to that level followed by a slow move up.


Execution detail:

Date/time Symbol Side Price Position
2021-06-15 10:22:53 16 JUN 21 425 CALL buy $1.230 long
2021-06-15 10:25:36 16 JUN 21 425 CALL sell $1.100 0


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