NIO Trade on Jun 29, 2021 10:53 from tjmiller2001: Tradervue User Stock Trades.

NIO had used 6h Gap Supply at 49.63. This zone was formed over 3 months ago and the gap down occurred after an earnings announcement. It was used briefly yesterday and earlier today.

That supply zone aligned well with VWAP and acted as support from 10:32-10:51. At 10:51 I wrote that I was "Watching for a break of 49.62 support and high volume move under supply zone." I believe that was appropriate entry criteria. However, since the zone had already been used, I believe it would've been better to scalp this opportunity than to treat it like a trend trade I hold for 30+ minutes. If the zone was fresh, I think it would be better to hold the trade with a wider stop and longer time horizon.

At 10:52 a large red candle broke under support with volume higher than the 8 minutes before it. I got short early in the 10:53 candle with a 3:1 RR.

10:55 Thoughts: "I have /NQ market backing but /ES is near HOD"

10:57 Thoughts: "Market Backing helping, trade working in my favor. SL moved to 1m close over 49.50." I believe that moving the stop to 49.50, a recent resistance zone, was appropriate. Good job managing the trade here.

11:03 Thoughts: "SL moved to 1m close over 49.90. I'd get out on a high volume momentum push lower near my PT (at 48.90). This would see me get out when premiums are inflated and a reversal is more likely." I like how I had multiple exit scenarios here. Sometimes writing down my reasoning behind a trade decision keeps me from exiting during noise. It helps keep me focused on the real move.

11:06 Thoughts: "/NQ market backing still present but right above VWAP so watching for a bounce." It was logical to consider both perspectives to staying in the trade and getting out here.

At 11:13 I sold for a small profit near TP level. I would've held longer but I needed to eat lunch and leave for work.

Lesson Learned: When trading used zones, use a scalping strategy instead of looking to hold until the trend reverses.