Shared by
EL_BOWS
Right idea, but slightly early. Bought as day long flag broke and crossed over MAs on volume. Next candle came back down and I got stopped out. Bought to long side because there was support on the daily underneath (the 9 SMA).
Question: I seem to do this regularly where I'll draw my trendlines for the daylong flag adn buy on the break only to have a pump and dump. I generally wait until it's crossed the MAs and has more volume coming into it. What am I not seeing? Should I be waiting for the flags to be longer?
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-01-23 14:24:35 | SFUN | buy | $87.270 | long |
| 2014-01-23 14:26:50 | SFUN | sell | $87.030 | 0 |
Comments
EL_BOWS
Hey Nape -- first of all, thanks for your screen shots, they're always helpful.
I had that exact line drawn on my chart, but I got in too heavy, so to allow myself to have a stop so far away, I'd have to have a much smaller position. I should have been okay with that since this stock can really move and you can still make quite a bit on 100-200 shares, but I was in for 300, so my stop was tighter. It's something I really have to improve as I notice I am usually in the right stocks, but often get shaken out to within a fraction of the reversal (not so applicable here, but in general).
Nape_BOWS
kunal00
mmm not sure about this. it gapped but its not like it had a tight range and then entered the squeeze zone. thats not this. it had a gap down and wide range of noting that it was just going back and forth it.
not setup here
Key Kunal - what if I'd bought 4 candles later? Where it did the exact thing I anticipated -- broke the day long flag, crossed over the MAs on volume. Is that legit? I guess my problem is that I don't see how that's NOT a setup. It's a day long flag break, isn't it?
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Remember trend line and ema's are just lines. They can easily be broken. You trade price action.
When you entered the trade it was still stuck in its range.
Nothing was wrong with your thought process, it just wasn't ready at the time.
http://screencast.com/t/oOfuKUUFt