ADTN Trade on Apr 11, 2023 09:32 from Dandres: Tradervue User Stock Trades.

Premarket
- I found this on the premarket scanner (thinkorswim, lol) It had gapped down more than 2% and had volume more than 50k premarket with shares above 5mil float.
- I added daily resistance/support lines. I noticed the stock had gapped down significantly to all time lows, I was thinking maybe it was overextended and might be due for a bounce but it was also under the VWAP for the entire premarket so it was super weak.
1. Planned to short if it stayed under the VWAP.
2. If it broke above the VWAP with volume, thought it might go to the next level of resistance at $14.76.
Open
- I jumped in right away at 1 min candle. DID NOT WAIT FOR ORB to settle. Got stopped out right away above VWAP, 30C loss = -$120.
- After this I just chased the stock. Bought then sold 4c later. Shorted then got stopped out on the 1 min candle. Then got lucky, shorted bc it broke VWAP, added to my short and ended +$18.
Reflection
- Only thing I did right this trade was premarket scanner and chart prep, I failed to meticulously plan my entry confirmation and exit confirmations, I believe that is why I may have jumped in so quickly. I think my strategy should have been to wait for the ORB to die (10-15 min) and check the 1 min candle action to see if it was holding close to/right below the VWAP + 5 minute candle closing below VWAP would have been my confirmation for entry with a stop loss at right above the VWAP
- 5 min candle showed clear sign of weakness below VWAP but I was tunneled on the 1 min. I should have focused on the 5 min pattern and used my 1 min for more accurate entry.
- I did practice scaling in though! It was cool lol, felt so pro.
- I did size appropriately SORT OF because I should have scaled in more gradually instead of half position at start. Maybe 1/3 position is a good way to start.
Summary
- Wait for ORB to die.
- Wait for chart confirmation.
- Practicing scaling in.
- Leaning towards 5 min chart.