Shared by
samb_BOWS
another pull back play i found on my scan last night. was pre-empting an ORB on the 2 min chart, added again at the 20 MA, and again on the strong bounce and break over the 9MA sold all at $72.75 again for the same reason, smashed target by 3x and ive got alot on today!
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2014-04-29 09:40:33 | FANG | buy | $72.090 | long |
| 2014-04-29 09:50:01 | FANG | buy | $71.700 | long |
| 2014-04-29 09:50:16 | FANG | buy | $71.980 | long |
| 2014-04-29 09:57:33 | FANG | sell | $72.750 | 0 |
Comments
samb_BOWS
Its hard to explain, ive been trading the same things for quite a long time, I normally have stops in but on this case i didnt, im unsure of what you would call it, a psycological stop maybe? If it broke and held below the 20ema on the 2 min chart i was watching i would have been out, rather than holding a solid stop, ive found it to be better at times, although its risky, the spread can really screw you over and stop you out of a good trade especially close to the open when things are mad. I was very confident this would continue higher and that it was just trying to find some support, i had a feeling that support would most likely be an MA. that and the .50 level is a strong psycological support resistance level.
oly_BOWS
hmm so 71.49ish would have raised alarms for you at least. Just be careful of the natural tendency to hold losers too long - if your stop is flexible don't let it convince you to hold a loser forever as it tanks.
id say 95% of the time i have a stop, this is one of those i felt more comfortable doing the other way, the spread was bouncing around a bit and as i mentioned i was pretty confident of the direction. as for the scale in, 71.50 was strong, the MA was also there (where i expected the bounce), the second buy in i went for because of the strength of the bounce (the whole bar completely cleared the range of the previosu down bar which is always a nice signal of strength, it also broke $72 the 9MA and the VWAP, that was enough for me to feel safe to re enter. the stop for the 2 secondary entries was under 71.50, so i risked .65c on position 1 for a gain of .75c, position 2 risk was 20c risk for $1.05 gain, and position 3 was 50c risk for 80c gain.
I was getting concerned under the the MA but that lasted only a few minutes, it soon rocketed, when the MA held i added, and at the time it looked to break MA i was only in 200 shares, if price closed below MA and broke lows of the bar that broke MA i would have got out quick
Nape_BOWS
No setup on the first entry as it was extended. The risk/reward was not worth it for this trade.
first entry I was looking at an ORB, it was extended though. 2nd/3rd entry was ema bounce, R:R wasnt good on that first entry, 2/3rd were ok on the R:R basis, I think id be reasonably happy with it if i didnt take the first entry and waited for that pull back. I really need to stay out the market in the first 15 mins
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Just curious - where was your stop on the initial entry? 70.99? 71.49?
scale in on the further drop is intersting - reminds me of Larry Connors stuff but most in BOWS don't scale as it moves against.
in any case, congrats on the win