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Oct 29, 2018 09:54


Scaling In Reversal News Play Gap Down Full Dollar Decision Candle Backside Trade

News Play. $IBM gapped down over the weekend after the News it would takeover $RHT with a rough 50% premium.

Above I had 121.20 122.65 and 123.71 for resistance and 116 for support and as possible target.

$IBM had tested the 122.50 level during premarket and sold off into the The Open at around 120ish.

$IBM was of interest when it approached premarket highs where I started a position on high RSI and planned to add 123.50ish for more.

$IBM didnt get there and I used the Backside-Trade and break below 123 on a Decision-Candle for the next add. Target VWAP.

I took a partial around my first entry before $IBM made another leg up. When it broke with strength above 123 and ran into 124 I added another piece around the resistance I had marked.

$IBM tested 124 and reversed lower to hesitate with 123 to eventually break that level and resolve to VWAP.

My Profits were ok, but maybe a little too early. Good Trade after all and well managed.

Execution detail:

Date/time Symbol Side Price Position
2018-10-29 09:54:00 IBM sell $122.350 short
2018-10-29 10:06:00 IBM sell $123.000 short
2018-10-29 10:07:00 IBM buy $122.390 short
2018-10-29 10:16:00 IBM sell $123.740 short
2018-10-29 10:28:00 IBM buy $122.900 short
2018-10-29 10:34:00 IBM buy $122.580 short
2018-10-29 10:35:00 IBM buy $122.370 short
2018-10-29 10:42:00 IBM buy $121.770 0

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