PLAY
MNQ – Midday Reversion Scalp to VWAP
CATALYST
The markets have rallied hard to supply zone 2 this morning. As volume predictably lightened up into the afternoon and price consolidated, mixed commentary from SF fed president and Atlanta Fed president will not drive the market higher. There will be a lot of short term traders looking to lock up profit in case the market reverses, so there may be some short opportunity here.
TRADE IDEA
Price will revert quickly to VWAP after HOD consolidation was broken
SETUP QUALITY AND VARIABLES
“B”
• Fresh mixed news is bringing confusion to the market
• Price is extended well over the intraday vwap
• HOD consolidation has been broken to the downside
PLAN
• Wait for consolidation area to break and look for a pop to short off of, selling 50% as price breaks below initial selloff reaction low of 11312 for 20pts.
• Sell remaining 50% at target (VWAP)
• Stop is entry price
REASONS TO SELL
• Price reclaims entry point quickly, sell 100% at break even
• Targets hit
EXECUTIONS AND PRICE ACTION
• 1st attempt was too early, did not wait for pop to short. Stopped out at break even.
• 2nd attempt was perfect. Shorted top of micro-bounce, trade followed through as planned
• Sold at targets as planned
KEY TAKEAWAYS
• Could have tried shorting a few minutes earlier when the conflicting news was breaking around the HOD consolidation, but since this was essentially just a scalp, I wanted to see a little momentum to the downside before getting involved.
• Ok to trade this with more size, keeping ultra-tight stop
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2023-01-09 13:38:04 | MNQH3 | sell | $11317.00 | short |
2023-01-09 13:38:21 | MNQH3 | buy | $11320.75 | 0 |
2023-01-09 13:38:50 | MNQH3 | sell | $11327.75 | short |
2023-01-09 13:39:02 | MNQH3 | sell | $11326.75 | short |
2023-01-09 13:40:50 | MNQH3 | buy | $11313.25 | short |
2023-01-09 13:47:06 | MNQH3 | buy | $11273.50 | 0 |
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