Shared by
JasonC_BOWS
P&L: -$195
PTLA popped up on one of my scans this morning and I was eyeing it for a short. I missed the entry close to the 9EMA resistance so I waited for the break under the VWAP. After I made my entry it pulled back on me over the VWAP and I sold off for a loss.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-03-24 10:25:32 | PTLA | sell | $21.060 | short |
| 2016-03-24 10:35:34 | PTLA | buy | $21.450 | 0 |
Comments
Trades4Smokes
Shorted after several large red candles, stock might have been a bit oversold. Usually that oversold into VWAP you should expect a bounce unless stock extremely weak
JasonC_BOWS
Yea I see that. I figured since it cracked the VWAP that it would hold as new resistance and would bounce off it to the downside. Didn't workout lol
JensW
In short:
a) Major chase, short stocks when they are high, buy them when they low.
You shorted after a 10% drop! 23 to 21.
b) wrong side of the trade, it was a long off the VWAP. When you look for VWAP as resistance (VWAP reject), the price action should be coming from below the VWAP. for a VWAP bounce, price action should be coming from above VWAP ... in general.
c) probably not the right name for beginner ... ca. 15mio volume ... volatile ... under short sale restriction.
My thought on PTLA was, since it cracked under the VWAP I took that as new resistance and got in thinking I was buying high at resistance. Again, failed to see the overextension on the chart. The right move after the VWAP break would Have been to let it pullback and if it held the break under VWAP get in for the flush. I appreciate the feedback. Thank you
You sold short ... above you are writing "i was buying high at resistance".
Not sure what you mean?!
Support and resistance are established on higher time frames. Yes, they occur intra-day on 1-3-5min charts, but the higher the time frame and the more often the support and resistance has been established, the stronger it is. I would be careful to automatically use VWAP as support or resistance ... VWAP should have functioned as support or resistance in the past.
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I find that sometimes following trendlines in the intraday chart can be very miss leading due to how sporadic it is at times. Don't get me wrong i love all the trend analysis lines, on my Thinkorswim daily I've got about 5-7 of them as well as RSI, average true range and so on but when you get down to the intraday they can be very misleading. As kunal says follow price action, and what really has helped me has been reading steve nison's japanese candlestick charting techniques; once you see doji stars and morning stars get out the trade because it's reversing. Hope that helps :)