Thesis: After price could not hold twice above premarket high, I have decided to go short considering breakdown of VWAP. Considering gap above +3.74%, RVOL 8+, and catalyst news regarding high expectations of flights on holidays in US, this stock had to go up, but it did not.
Stop: Placed my stop-loss above VWAP breakdown candle.
Entry: I have entered position once the price closed below the VWAP for the 2nd time after printing lower high and showing rejection in attempt to pass premarket high 2nd time.
Targets: at least 1to3 was considered appropriate in this setup. High RVOL and tightening of price should have provided the push in any direction with the time.
Breakeven point: could not be set due to fast reversal.
Comments: great idea and it needed extra attempt to work off. Next trade today was slightly more successful.
Lessons: This setup requires 2 entries in the worst case and I have to be prepared for them.
Execution detail:
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!