Shared by
johnc_BOWS
Bounce off the 20dma on the daily. Bought on break of the mini flag and when it cleared the intraday MAs. Also about to go green at my entry. Set stop below base of the flag. Exited because dips weren't getting bought. Re-entered after green candle confirmed new supported at the 6.90 area. Set stop at 6.88
Lessons and mistakes:
I've desperately been wanting to learn how to play a bounce off support on the Daily chart on the intraday timescale. However, I still don't have the hang of finding the right intraday setup.
My (incorrect) assumption is that a support level on the daily chart will be IMMEDIATELY respected on the intraday timeline; I assume that if the 50dma is at 10.40, the stock will bounce at 10.40.
However, I've recently learned the right way to play these bounces (see here:
In the case of KNDI, the price of my 2nd entry ended up being valid but only after KNDI had rested. It was really choppy, but finally went into accumulation and held 6.95. When it broke 6.95 at that flag, it had enough gas to move up .15 cents, which would've been fine for a quick scalp.
All-in-all this trade was pretty bad. I didn't even have a proper target and the stock was all over the place.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2013-10-09 10:43:36 | KNDI | buy | $6.990 | long |
| 2013-10-09 11:01:17 | KNDI | sell | $6.900 | long |
| 2013-10-09 11:01:29 | KNDI | sell | $6.910 | 0 |
| 2013-10-09 11:06:24 | KNDI | buy | $6.940 | long |
| 2013-10-09 11:06:24 | KNDI | buy | $6.940 | long |
| 2013-10-09 11:07:11 | KNDI | buy | $6.930 | long |
| 2013-10-09 11:24:09 | KNDI | sell | $6.880 | long |
| 2013-10-09 11:24:09 | KNDI | sell | $6.880 | long |
| 2013-10-09 11:24:32 | KNDI | sell | $6.870 | 0 |
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Chased original entry. But look at daily, right idea, just chased intraday.