Practice Trade
Updating on 2/16
Here are my notes from the pre-trade analysis:
Shop has a good drop after the current support area, like NVDA, and appears to be flagging on the 4h chart. I like it similarly to NVDA, so I’ll keep an eye on it. I might run numbers like I did in NVDA and potentially put an order out, based on the 4h chart. Actually, let’s not do that. Let’s get up tomorrow morning, get to the charts before the open, and make decisions with a more clear mind
Looking at the daily chart today, price broke a major resistance area about 10 days prior, based for a few days, spiked again and the day I looked at this had gapped down and looked like it could fill the gap, and best-case-scenario, reach the highs it made a couple days prior.
Actually, I just thought about the fact that this was a practice trade using my new strategy. This was on it’s way down, so I put a limit order to trigger at the highs of the prior base, and a stop at the next support area.
Entry – $50.00
Target – $55.00
Stop – $47.75
R:R – 2.22
Entry – $49.93
Exit – $47.75
Price largely just danced around my entry for a day or so, then the morning of the 10th, price gapped down, and pushed down enough to stop me out. Overall, this was a great candidate for my new strategy, it just didn’t work out. It did allow me to stay in a trade for longer than just the day — which is what I’d always expect when trading a 4h chart, but hasn’t been the case — so there’s that. But the only benefit that gives me is keeping all 3 of my “day trades” available. So far, I’m actually thinking I don’t like this strategy, but I’ll practice a couple more times to be sure.
