SNAP Trade on Oct 27, 2021 10:27 from Rolling-Bubbles: Tradervue User Stock Trades.

Social media stocks were down across the board, PINS SNAP FB TWTR. Ad revenue is down for all these folks due to AAPL ad changes. 70% of SNAP ad revenue comes from AAPL store, so its a no brainer SNAP has a lot to figure out and its why SNAP is down 30% from earnings. All of the social media stocks were in play with elevated RVOLs, so the goal in the morning was to play these on the short side if possible in the morning and once oversold, to look for an** OVERSOLD BOUNCE.** FB for the most part stayed choppy, PINS and TWTR just chilled near its low for the day. SNAP was the only one that was at a logical support where I could play a bounce, though price action such as higher highs and higher lows or capitulation would have to be there for a proper set up.
SNAP approached 51.6 bucks around where is Daily level volume node, there's actually 2 volume nodes in the vicinity, one at 53 and the other 52. It was around these levels that SNAP was going to get a rebound if we were going to get one at all.
Around 9:11, SNAP put in what looked like a capitulation selling volume bar as price reached 53 bucks, which makes sense because liquidity is expected at PLL zones. SNAP went on to grind lower in smaller ranges on decreasing volume and with some signs of accumulation such as at 52.06 at 9:30. The 52.06 level ends up being important because once the rebound had started, price had shown "unusual" support at 52.06 for almost 30 minutes around 10:50-11:20. At 10:05, SNAP had also put in big red bar but with barely any price progression and at this point price was already finding support at 52 bucks where the PLL is. At 10:24 we got an undercut of the 52 level but initially with low volume and that got my attention because the tape was picking up at this point and if there were to be any reclaim off the PLL, then the rebound is most likely on and that is where I need to be entering. This spot was a little tricky because volume did pick up after the undercut but it was met immediately with bids around 51.6. The first green candlestick after the lows at 51.6 came with low volume so the entry was not clear yet but the following candle, and also the biggest once we had since 9:30 was met with surging volume and I was in at 51.96.
Price immediately went for R1 at 52.2 and rallied beyond it where I covered a third of my position. I think this was a good trim because the rebound still was not confirmed. The flush beneath support is an opportunistic entry because the stock has yet to make a higher high and higher low, both of which are the typical clues of upward momentum.
As expected the pullback came and I was looking to see whether SNAP would make a higher low, the stop loss remains the same here, below 51.6 and my R/R has now increased since I trimmed. SNAP pulls back and finds support around 52.06 (price is sticky!!). This was a logical place for SNAP to bounce and it did but with very muted volume and I needed to see some more big green volume bars to know this is the higher low. Well it was not and volume levels gave the clue, I took another trim here because now the probabilities of failure are higher unless SNAP can find bids above 52.06.
For almost thirty minutes SNAP moved in small range choppy manner with dried up volume and found support above 52.06. This is where I was looking for a re-entry to add more risk. the stop loss would be below 52.06, the pivot for the play now. I do not want to just enter at support though, I need to see some bullish clues besides support being held to add more risk. This is important because I am already invested in the play, so I can need higher standard for add on during the play in order to prevent moving up my avg price too much. At 11.07 we got a flush to 52.06 exactly with low volume relative to the whole day but was high for the thirty minute period where SNAP was consolidating. The flush was met with quick bids again and a pish into R1 at 52.28 came again and SNAP started pulling back again. The pullback was once again on drying volume and that for me was a clue to get back in. The size of this re-entry needs to reviewed. At this point I have basically half my core position after two scale out, should I be adding 500 more shares to make it full size again or should I keep my risk low, so my stop-loss can stay lower and only add 250 more shares, in which case id have 3/4 core size. Because the pullback was on low volume, I added the 250 shares at 11:13 but SNAP was not done pulling back. The candlestick at 11:07 had created a wick from 52.06-52.17 and I think SNAP wanted to explore what kind of participants were hiding there, well sure enough it was bidders as volume surged at 11:19 and price jumped almost 35 cents in the next three minutes.
Now my re-entry was not bad, I think with the clues given I entered at the right time, maybe I should have expected a retest of the wick at 11:07. But I think the biggest mistake I made here was not adding on the surging volume bidders once the wick was tested. Maybe this answers my question about sizing. 250 can be added on the initial pullback (which is also an opportunistic buy) and then another lot can be added once I see the surging volume, just like on the very first entry. This would have really allowed me to milk this play I think.
SNAP continued to grind higher with decent volume but started to tapper off as price approached VWAP around 52.90. I took off a quart or so each move higher with decreasing volume.