Went long as soon as the next candle broke the previous one. Position immediately reversed and flashed quickly down to my stop. trade was too fast, and I think this was too risky of a move, though I did stop out at my stop and not lower.Tried the same damn thing, and got popped the same way. Devil stock anyone?
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2013-12-03 09:39:11 | ASNA | buy | $21.840 | long |
2013-12-03 09:46:21 | ASNA | sell | $21.680 | 0 |
2013-12-03 10:07:19 | ASNA | buy | $21.950 | long |
2013-12-03 10:13:52 | ASNA | sell | $21.690 | 0 |
Nape, thanks for the look on the trade. I was going for a prior candle break and bought long when it did. it swung too fast on me on the candle after. I think most of that red candle came in 1 minute.
Kevin, a prior candle break is not a setup. If you're going to say that's a setup then every single stock on every single day has a setup cause every candle breaks the one before it in some way! A setup is a set of conditions:
You can also add things to your setup like the market was strong, other stocks in the sector were running, the daily chart had no resistance, things aligned on multiple timeframes, etc. A stock just breaking the high of its last candle is not a setup or anything at all really, it's just a thing that happened which means nothing, as you found out since you lost money!
You gotta be thinking like this on EVERY trade my man!
BTW that "setup" in my comment was not referring to this trade ... it was just a hypothetical thing I made up lol
Remember stocks get there power from consolidation, so with it approaching that round number 22 which is heavy resistance, the pattern needed to be tight and clean for a powerful breakout through 22.
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Whats your setup?