PLTR Trade on Jun 25, 2021 10:44 from tjmiller2001: Tradervue User Stock Trades.

PLTR had a Used 3 Hour Supply Zone at 26.63

PLTR opened around its 3 hour supply and consolidated from 26.55-26.80 for the first 20 minutes of the trading day. It then broke to the downside, moving from 26.55 to 26.25 in just 10 minutes. After that, it began a move up into supply, slowing down as it got closer.

The consolidation from 10:27-10:43 led me to believe that buyers had lost strength. I like that strength had been lost under supply, but this name was holding above VWAP and I didn't see any signs of selling strength. I wasn't going to enter during a consolidation period, instead, I wanted a break to the downside, under 26.53 for my entry.

At 10:43 price closed under VWAP and consolidation support. I jumped in early on the 10:44 candle when I saw higher than usual, but not crazy volume. Price quickly moved back up above VWAP.

I had a 3:1 RR and I noted that PLTR, "Felt Heavy and ready for a downturn" at the time of my entry.

Since I was trading 7 DTE contracts, time decay was not an issue and I was patient with letting this move play out.

At 10:48 I wrote that, "/ES was moving down and /NQ sideways."

At 10:52 I noted that PLTR was making lower highs so I would stay in the position. I moved my stop from 26.62 to 26.60

10:55 Thoughts, "/ES and /NQ downtrend providing market backing to my short. Stop moved to 26.57"

11:02 Thoughts, "Downtrendline above (from 10:38-11:07) being respected, holding under that trendline no matter what."

I like how I was cognisant of how the overall market was helping my short position. I also like how I was slowly moving my stop down as the trade worked in my favor. Holding the position under that trendline was the right decision.

At 11:09 I wrote that PLTR had broke over its trendline. I was watching its reaction to VWAP. I was aware of /ES bouncing off VWAP. These 3 things were working against me, yet I stayed in the position.

At 11:13 I was stopped out. My exit was very late as I was fishing for a few extra dollars. Around 11:10 I remember thinking, "When a stock moves up like this (no signs of selling strength but not a momentum move up) I don't think it tends to reverse lower in the short term until resistance is hit." I ignored this voice in my head and held onto a losing position that I believed had a low probability of moving lower.

Late exit on this trade, held on despite lots of variables working against me (Broke trendline, above VWAP, no selling strength, change in character, no market backing.)

Lesson Learned: Wait for a 1m candle to spent time above or below a key level. I am more likely to get faked out when I enter early in a candle before price proves it can maintain there. When you feel there are several variables working against your winning trade, get out then set reentry criteria.