Shared by
Emilie_BOWS
Daily: supermomo parabolic
Intraday: parabolic/bear flag
I missed the morning long setup. I watched it but it had large spreads and my limit order wasn't filled. Anyway, I kept watching it and saw it was running out of steam around $18. It broke intraday support line and formed a bear flag. I got in on the break down of the bear flag, covered 1/2 around $16 and the rest at market close.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2017-04-06 14:27:26 | AKTX | sell | $16.900 | short |
| 2017-04-06 14:35:18 | AKTX | sell | $17.250 | short |
| 2017-04-06 14:52:36 | AKTX | buy | $15.980 | short |
| 2017-04-06 15:59:53 | AKTX | buy | $14.200 | 0 |
Comments
Emilie_BOWS
After the first 2 candles (5m-chart) when it stopped moving up and started consolidating sideways I assumed it was building a bull flag. After the flag had 4 candles holding above VWAP I wanted to get in. I had my limit order near VWAP which didn't get filled. I had a market order to buy on the HOD break but cancelled it the last minute because I was scared of the spreads.
Flag setups rarely look like a sure thing when they are forming. It's always easy to draw trend lines, flag breakouts etc. at the end of the day and show everyone where to get in but actually trading them and timing entries correctly are difficult. I think this particular flag was difficult to trade because the range of the consolidation was very wide before the breakout.
The short trade: I got in using a market order (sold on the break down) and took a small position because I was afraid I would get a bad fill and also didn't want a large loss when it faked out. It bounced a little but still closed below the range and then had a little pullback but nothing scary so I added a little more. Stop was 17.50.
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Hey,
In the morning for the long, at what point did it confirm to you it was a bull flag and where did you try to get in? I was watching it but wasn't sure which way it would resolve so I stayed away.
I did see the short trade you actually did take but I wanted to know why you added after you originally shorted on the breakdown and it didn't immediately continue lower? I know sometimes they have a fakeout but as long as there is no followthrough to the upside and it rolls over again, it's ok.
I'm guessing your stop was 17.50 right?
Thanks.