SPRT Trade on Sep 9, 2021 09:46 from Trader_John: Tradervue User Stock Trades.

SPRT was on my list this morning as the daily chart was reversing and it had good momentum closing last night.

On SPRT I was looking for a bottom reversal near the open. I had seen this phenomenon occur a few times over the last few days (AETR, ENVB, BBIG, etc...) so I figured I would document rules for this strategy live with SPRT.

This strategy is simple. I just looks for reversals on key levels with three confirmation green candles. This strategy only determines entry, then you use stops, and the upward trend continuation strategy to manage exits and risk. You want to set tight stops on the initial entry because reverse trends can tear you a new one if you are wrong. I usually set my stop 1 penny below the lowest candle. If the upward trend gets too far away and has strong momentum, my stop will be the open price of the 1st green confirmation candle.

For support levels I had defined several: 23.16 which was close of previous day, 22.17 which was a hard pre-market bounce, and finally 21.55 which was hard resistance AH on 9/7 and at open 9/8.

As SPRT opened it blew up to 24.13 after bouncing around the 23.16 resistance from the previous close. Then it abruptly reverse and blew through that level and double bottomed 22.17 on the 1 minute candles. I though this might be the reversal, but I really wait for a 3 candle confirmation. At 9:38 I was sure it was going to happen but the trend reversed abruptly in a bull trap, and left a strong reverse hammer doji. I chose to wait and sure enough it broke through the 22.17 level.

The next stop was 21.55. Sell volume carried SPRT all the way down to 21.63 before being quickly bought up. This was a promising sign.. As the next candle was a strong bullish engulfing candle followed by a hammer doji. It looked like it was going to confirm. The 3rd candle was a little suspect, but I entered at 22.42. Not a great fill I thought. I set my stop at 21.62.

Here is what the trade plan looked like:

I then set an alert for 24.79 as my first exit, set the chart to 5 minutes and went about my day. About 15 minutes later SPRT exploded. I got an alert, and sold my first 1/3. I moved my stop to 23.61. The next exit was 26.37 and I set an alert. After about 15 minutes I saw what looked like a double top on the 5 min around 26.25 just shy of my next exit. I decided to exit the position as price action seemed to be losing steam and locked in profits.