AMD Trade on Jun 29, 2021 10:27 from tjmiller2001: Tradervue User Stock Trades.

AMD had a 4 Hour Gap Supply at 89.53. That zone was formed roughly 4 months before I traded it.

AMD rose strongly at the open, moving from 87.00 to 89.00 in the first hour of trading. It pulled back at 10:12 after not making it all the way up to 89.53 supply. At 10:18 it reversed back up higher. 8 consecutive green candles formed.

Then at 10:26, a red candle with the highest volume seen in 16 minutes appeared. This was by no means an abnormal "Volume Spike" but seeing increasing volume on a red candle right under supply gave me the confidence to size up on my entry very quickly after that red candle closed. This was a good entry bc I acted decisively after seeing a high-volume red candle near supply.

At 10:29 I sold one contract on a HOD break and made a plan to sell the other over 89.60. I didn't sell both contracts at this time because price was still under the supply zone. However, it would've been smart to get completely out here with a reentry set for a break under 89.25 consolidation.

This decision would allow me to get back in the trade with a reasonable RR and a higher probability of the trade working.

At 10:32 I sold the last contract and made plans for a short reentry under 89.25.

If presented the same opportunity again at 10:26, I would still enter this position but I would not size up because the volume was not abnormal. If 550,000 shares were traded at 10:26 instead of 350,000 I would've entered with two contracts. I'm glad I showed the guts to size up on a day trade, that shows improvement over my old tendency to be too small on my winning trades.

Lesson Learned: When a trade doesn't start immediately working in my favor, I should get out and be very focused on a reentry on a break above or below recent consolidation. This is the best way to protect capital and take advantage of moves.