CUDA Trade on Mar 10, 2014 10:35 from Markmandy54: Tradervue User Stock Trades.

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Markmandy54

 

Reversion trade to higher T/F support. Long with -.40 stop, Target +1.50, +2.50. As soon as bounced moved stop up as didn't revert like anticipated. Good stop, however i took my eye off it once out and missed the DOUBLE BOTTOM. Initial stop never hit. Both targets hit.


Execution detail:

Date/time Symbol Side Price Position
2014-03-10 10:35:24 CUDA buy $37.900 long
2014-03-10 10:41:56 CUDA sell $38.250 0


Comments

2014-03-10 16:09:19
 

What was your set up here?

2014-03-10 17:59:10
 

Tough play to pinpoint the bottom (even though you almost had it)

2014-03-10 23:24:46
 

This is called a reversion to mean tactic. When the waterfall starts you move to a higher T/F to see where support is. In this case Daily had support around the 38 area and 9MA on daily happened to be 37.89. Risking -.40 or so to make +1.50 and +2.50. I hurt myself by raising my stop too quick as it didn't bounce as quick as they usually do (Look at REGN yesterday as same idea around the 300 area, 50MA was 304ish)

2014-03-11 06:40:57
 

Thanks for teaching mark! Never heard of that. Do you stil use the same MA's, ect..??

2014-03-11 09:16:28
 

Love it Mark! Your "reversion to the mean" tactic! Is this one of your set ups that you find you do well on, or have mastered?

2014-03-11 09:19:42
 

Definitely haven't mastered it. I rarely use it unless i see the setup. To be honest i'm not that great at it but when i do catch it right you can pull a lot of profit out of it. I use the 20MA as a target and the 50MA as target 2.

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