HD Trade on Feb 21, 2023 14:52 from Maarten: Tradervue User Stock Trades.

HD 21-2-23
Catalyst: Earnings beat but guides lower
Setup: Negative earnings reaction. -3.9% 1.5ATR.
Technicals: Ranging price action. Not very bearish. Gapping below LT consolidation level.
Pre volume buzz: 5.5% volume
I would give it an 8/10. Catalyst could be weaker. But I really like that it’s gapping down below 307-308. It needs to hold below this level for a good short.
16:31
370% volume buzz. 1.1ATR down move. The open was clearly weak, now it’s bouncing into probably the 20EMA on some increased volume. Could be a bottom but not very clear.
The volume and down move are decent. Nothing special. Want to see a cleaner pull in then it’s currently doing. Maybe I could short on the next lower higher into the 5m 20EMA. Setup now isn’t clean: no clear down trend.

Review the signals that led you to identify the trade opportunity SETUP? Screenshot the chart BEFORE and DURING it was setting up. Add notes.

Did a good job identifying the potential of the setup. Liked the significant support area which it gapped below.

-How successful were you in identifying the market environment and playbook variables during the trading session?

Think I did very well here. Without doing it in a structured manner I did the market structure drill at 10:30:

A) Describe current market structure and conditions present.
ATR & volume
1.1ATR move + 300% volume buzz.
Price action (market environment)
Strong drive. Followed by potential bottom and reversal.
PB Conditions
Not favorable. Potential bottom followed by too large volume. Want to see a cleaner pull in.
B) Project forward a path showing my expectations from here.
What will happen if the environment doesn’t change?
No trade.
How could it change into another market environment?
Pull into VWAP – 20EMA. Trade lower
C) Project trade opportunity
Short lower high into EMA. Would be the first PB after change of trend.

This is actually what played out. But I chose to focus on WMT and didn’t take this trade opportunity.

What was the ideal entry point? How does that compare to your entry? What signals (if any) did the market provide, which could have led to an improved entry?
I entered after the first reason2sell of the whole day. Had I been in the trade from the PB – 1st PB after change in trend, then I would have sold where I entered.
I want to focusing on candles that follow a volume bar that is below average. I do want to track this in excel, but I feel this is the best entry trigger I have.

What was the optimal exit location or locations, in order to minimize risk when wrong or maximize gain when right? How does this compare to your exit location? What signals (if any) did the market provide to identify this ideal exit location?
My second trade, which started working very well, completely reversed on me. Before it started working it did two above average volume bars. This is a CHOCH and I should have sold a partial.

Execution
I got in before it touched the 20EMA. Did so when the previous candle did above average volume, not great. Will look more into this tomorrow. Second exit wasn’t according to my trade rules. I should have recognized the CHOCH and sold 20%, scaled the rest break even. I just moved my stop break even.