CLX Trade on Apr 20, 2018 10:07 from Felix: Tradervue User Stock Trades.

2nd Day Play on CLX after downgrade

The Big Picture

Market was moving down, good focus on keylevels. Clear direction this weak after the volatility compressed.

Intraday Fundamentals

CLX got a downgrade from MS analyst on prior day. Closed at low of day which was a strong sign for it to decline.

Reading the Tape

Had the technical levels on my sheet. 118 was of major importance. Could hold this level in the first minutes, so I wanted it to come below that level and show weakness from below. Closed below spike and MM shorting below VWAP. It did not move first minutes below that level, which was unusual. Sellers were in control. Had a very high volume spike at 116 (where I scaled out). I did not see where that came from. No sellers or buyers on the tape. Could have switched to the 1 min chart, to see the price action, which was bearish.

Technical Analysis

118, 115,60, 114,88 (ATR)

Trade Management

• Waited for it to come below the spike (waited for a close. Volume was good on breakout, low on pullback (great) and good reversal candle below VWAP. So great timing, fresh timing in terms of ATR moved that day, good to go. As already mentioned had some buying into the 117,50ish area, but was comfortable, because it is a clear thesis and a very nice spot to trade it from. Played it from the top and not got into selling it low, which was a problem the last weeks.

• Could have been bigger, but stock ws spready and i calculated around 10 cents spread for it. Did not want to get shaken out, so this was ok. Will be heavier in the future, but focus is currently on my consistency and taking the good trades! This was an A+ setup for me. In fact, market was coming down as well and the next keylevel was couple of $ away. So very good confirmation and additional piece for this setup. I did a good job with covering the first partial. My entry was a bit of due to the spread, so my gain was only 62 cents, so 1,5 R's. Which was fine and payed my risk.

• I then saw the pullback but also recognized this pattern (consisting of 4 candles. shallow green, larger fullbody red, retracement and breakdown after that), it was too extended for my, so the timing was not right in my view. This was a major improvement for me. I was comfortable letting this potentially move away. But it indeed came back right into the EMA only to return. So I then moved in an added to position with 100 shares. Here, as well, I could have easily be bigger 50% with my size, but ok, and very good experience for me. Major experience to see myself getting stopped out in this scenario only weeks ago, although it was correct. Maybe in the future I can structure this trade directly for a rejection of EMA with small risk. But good for this point. Had my targets on the sheet and went down with market as well.

• Huge trust in this setup (remember, very strong with market). Came close to target but pushed back to whole number with huge volume. Did not see where that came from, so I took 75% partial and later took the rest of. I know that I should have let the partial 25 % open, but I decided to call it a day, since I must learn, to also end the and feel good about trading. Market at that time was as outlined support, I wanted to end the day and enjoy the sun, which was a good decision, since I studied the hack this week.

Trade Review

Very good stock selection and once more good use of key technical levels. No need to force those trade since I now feel, that they have to be right. Some days/weeks ago I would have shorted the first red-green move, but that is with less likelihood. Now I wait for the confirmation (that I also waited for in TSM) and just take the opportunity as it reflects itself. Good add and very good passive wait for it with the timing. No need to rush anything. A feeling of, No, not perfect, I wait. And once it is perfect, go for it!

• This setups was an A+ Setup. All 5 points were in my favour and increased the chance of success. Will work on the trades of the current weak and see, which ones did extremely well and why.