Updating on 10/12
Looking at the daily chart today, this had pushed down, taking out several solid support areas about 5 days before I took this trade, had a small rally, and when I got to this was pushing down again.
On the 5 min. chart, price looked fairly similar to the daily chart, with a push down taking out a few support levels and a small base. It’s the small base that I shorted into.
Entry – $7.14
Exit – $7.13
Price pushed in my favor, enough to hit 1R — where I moved my stop to break even — before pulling back again/retesting and stopping me out. It was an almost exact even trade, maybe a loss of a penny.
On the daily chart, price hadn’t spiked a ton, so it wasn’t extended. In fact it was sitting on a good support level that signified a continuation to the downside. The pattern on the 5 min. chart was good, too, and even better that it was a quick and tight base — not a wild one that I have to surmise is a base. So, overall, I’m not upset with this trade, especially as I didn’t lose any money. I didn’t chase anything and I followed my rules. I need to continue to be patient and look for more trades like this.
