FB Trade on Jun 25, 2021 10:14 from tjmiller2001: Tradervue User Stock Trades.

FB has a used 15m Demand Zone at 340.01

FB opened around 343 and I was watching for a move down into a used 15m Demand Zone. The zone was created 2 days ago and used on the same day it formed. FB sold off hard from 9:48-9:57, falling from 343 to 340. It quickly bounced out of demand then consolidated around that area for the next 10 minutes or so.

After moving back into demand, the 10:13 candle showed high volume and bounced from the same spot the 9:58 candle bounced from. This combination of volume, a demand zone, and a double bottom technical pattern combined to form an A+ setup.

At 10:14 I got long with a 3:1 RR. I was trading 7DTE contracts instead of risking lots of capital with the 0DTE. However, I didn't size up appropriately given the quality of this setup. I'm proud of myself for acting quickly with my entry, not waiting for too much confirmation.

At the time of my entry, /NQ and /ES were supporting the move up. /NQ was bouncing with volume and /ES was at HOD. Starting now, I will track my trades for "Market Backing" to see what impact that has on my results.

Since it was a far OTM call I was looking to sell into strength. Green candles from 10:15 to 10:21 made this a very easy trade to keep holding.

At 10:20 I noticed that /NQ hit resistance on 1m chart, consolidating there. However, there wasn't any selling strength yet. FB was showing relative strength. My intentions were not to sell here.

At 10:22 I moved my SL to sell under 341 and started looking for a Reason2Sell. Although price already hit my PT, I wasn't looking to get out because I felt this name still had room to run given its recent strength. If I had 2 contracts I would've unloaded one at my PT then the other when I saw weakness.

At 10:24 I sold on a high volume move lower. I sold on this candle before it quickly retraced back up for the next few mins. I listened to my SL so I'm not upset here. I do believe I could've been sized better though. That would've meant this opportunity could've been more than a $5 profit for me.

After my exit, I decided I wouldn't reenter bc it wasn't an SD trade anymore. Recently, I've done better with looking for reentries after my exits and looking for volume before my entries. Those are two valuable changes that I believe will improve my trading.

Lesson Learned: Size up when several factors align for an entry. This gives me the ability to scale out of the position instead of exit one contract when I see weakness.