Updating on 1/18
This had steadily been pushing up for about a month when I got to this chart, and when I did, it looked like it was finishing a cup-and-handle and was poised to break that resistance area. I actually saw this the prior day, and took a shot that didn’t work out, but the longer-term cup-and-handle was enticing, so I took another shot at it — technically entering the order on a Friday and holding through the weekend; continuing to hold through the choppiness on Monday, and it finally triggered on Tuesday
Entry – $121.69
Exit – $115.70
As I mentioned, price triggered right at the open on Tuesday, after gapping up above the recent highs, but over the next few hours, steadily pushed down. Eventually, price pushed down enough to stop me out of the trade for a loss.
Entry – $120.00
Target – $130.30
Stop – $115.50
R:R – 2.29
I liked the overall pattern for this trade — the cup-and-handle — but I didn’t enter the trade on a specific pattern, which could have been a mistake. I should have waited for a true breakout and retest or pullback or base, and I certainly should not have held on to an entry order for, essentially, 4 days. If I don’t get into the trade on the day that I see the movement, I shouldn’t get into the trade at all. Granted, that won’t be the case if I make some decisions at the end of the day, but that should be a good rule of thumb.
And, if I don’t see a pattern, or I set an entry order and that pattern fails before it triggers, I need to not be so attached to the earliest thing I’ve seen and not so attached to a “breakout” especially since they’re all potential. More opportunities become available every. single. day. And I need to fully understand that, every day, and not just intellectually when I’m doing a review.