Shared by
sharpee_BOWS
PAPER TRADING
ACCOUNT SIZE: 26.3K
MARKET BREADTH
- SNP up ~0.60%; SNP Below 20 and 50 DMA
Daily Chart:
- $BANC steadily got crushed in the morning
- Daily chart bias definitely seemed negative since it had cleared many levels of support in the process of getting crushed. Had almost 8-10% to run if it flushed.
Intraday:
- Set-up: Intraday bear flag breakdown
- It was responding to the 9ema during the day as a layer of resistance for it to pb.
- It had pulled back to the 9ema just previously and continued the downtrend.
- This time when it pulled back to the 9ema, I got in and shorted as it hugged the 9ema at 12.91 and set the cover stop at 13.05 with the target at the low of day at 12.51. R;R of ~3:1
- Got stopped out real quick (less than 1 5min candle!) and I assume the reason for this was that I didn't listen to my gut and wait for confirmation on the deeper mid-day pb.
Final PnL = -208 (-0.80%)
- It ended up pb-ing to the 20 ema. I really thought about getting in as the candles were small volume green candles. I got a bit busy at work and it made me pay for not getting in.
- It ended up flushing hard for the last 4-5 candles on the end. That was the flush I was waiting for which could have been a solid ~1,600 or solid 6%!!! :*(
- What's encouraging is that I was in the neighborhood and almost hit it!
Questions:
1. I assume the biggest issue here was not listening to my gut that the mid-day pb’s are deeper. Correct?
2. How would I know that it’s going to pb to the 20ema rather than the VWAP? Would the right way to counter be to wait for confirmation on the first red candle to get in and ride it down?
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2016-10-18 15:16:00 | BANC | sell | $12.910 | short |
| 2016-10-18 15:19:00 | BANC | buy | $13.070 | 0 |
Comments
kunal00
the spread on this thing was 10 cents.. ur stop was too tight.. u can often u see this take a half position with a looser stop then hammer it and go in when it finally cracks and starts moving down
sharpee_BOWS
Thanks for the suggestion guys! I like yalls recommendation of scaling in with a smaller risk factor and then loading in more aggressively if/when confirmation time comes.
Leave a comment about this trade!
You need to log into your Tradervue account to leave a comment. If you don't have one,
it takes
just a few seconds to sign up, and it's free!
These types of trades can be difficult because there is so much range that having a tight stop is just not reasonable. Many times you have to be willing to give yourself a .30 - maybe even .50 stop. If that's too much try a little less size as a starter and scale in when you have conformation.
Moving avgs and VWAP can be helpful but not in the sideways action where you took your trade. Much more reliable signals come from price levels (support and resistance). Draw lines at 13.14, 13.22, 13.31. That is your area of resistance that price cannot get over after the initial selloff.
Safe to scale in and add up to those levels and if price breaks through just take it off for a small loss and see how it reacts around VWAP and maybe try it again.
I like to wait for confirmation before entries and never take trades as price hits the moving avgs, VWAP, or resistance. I always wait until it rejects those areas before I take the trade.
You're on the right track...Keep at it.