MNQH3 Trade on Dec 27, 2022 09:49 from BanalityOfEvil: Tradervue User Stock Trades.

#2

PLAY

QQQ – multiday support – reversal - long

CATALYST
QQQ has found support between 262 and 264 the past 2 trading sessions and there are no major macro news events on the calendar which could cause this level to be broken

TRADE IDEA

QQQ will bounce off of multiday support 264 area (intraday support from the previous 2 sessions)

SETUP QUALITY
B

Nothing particularly special about this trade. Bread and butter multiple day support. Not looking for price to reclaim the open due to potential low volume today. Small price target. Smaller risk allotment.

BIG PICTURE

The selloff continues as we return from the xmas weekend. There are no major macro news catalysts that could cause an outsized selloff in the markets. SPY traditionally ends in the green on the day after Christmas, but the morning selloff was aggressive, and I do not expect HOD/the open to be reclaimed.

PLAN

Express trade using MNQ

Wait for price to enter predetermined support area to enter position (10920 – 10880).

Wait for selling to slow and for downtrend to be broken, monitor Nasdaq heavyweights and volume for further confirmation that the trend is flipping.

Look for VIX to reverse around 22.80 for further confirmation that market could be bouncing

Target is 10970 – 11000

Entry is 1st candle to break the downtrend.

Stop is a break below bottom wick of 1st candle to break the downtrend

After entry, monitor Nasdaq heavyweights for indication that selloff may continue. DO NOT chase short.

REASONS TO SELL
• Stopped out
• Heavyweights continue lower (early sale, for small profit) indicates bounce failure
• Target hit

EXECUTIONS AND PRICE ACTION

Followed plan perfectly, entering with correct size in zones that were drawn during my premarket prep.

Had to try this 2x as the heavyweights kept selling off after entry. (took tiny profit early and stopped myself out)

2nd attempt was after 9am when price dipped below the LOD, but then quickly and aggressively reclaimed the 1st LOD. The heavyweights were moving higher, and VIX was rejecting Fridays HOD, which told me that this was most likely the best place to long this bounce. I used smaller size on the 2nd attempt because I felt like the 1st attempt should have worked more quickly and I was slightly less convicted the 2nd time, given the massive selloff on the open.

Took profit in predetermined profit zone, monitoring the heavyweights and VIX along the way

KEY TAKEAWAYS

• Excellent planning/prep and analysis
• I wish I would have caught the opening sell-off short, but did the right thing by not chasing, as this has been a poor habit as of late. I have been letting the recent volatility influence me to take some FOMO entries which have not paid off.
• Don’t reduce size the next time a 2nd attempt of this nature is required. The way in which the breakdown failure at 9am happened should have given you even more conviction than the 1st bounce entry at 8:45
• This is a trade you can add some size to, since risk in put on at key areas, and with a tight stop