I didn’t end up liking much from the first few stocks I looked at this morning, so I looked through my screener for this one. Price had been pushing up for a few weeks, and was up against a resistance area, threatening to break to highs it hadn’t reached since last August.
Honestly, I’m not 100% sure what I saw in this at first. One thing that I did notice was that price had been making a couple strong up-candles in a row at the open on the hourly chart, then pulling back for the rest of the day. While price had already made one push up when I looked at this on the 5 min. chart, I thought the quick pullback would be a great entry to catch one of those morning moves.
Entry – $16.24
When I went to enter the order for this trade, price was moving. I wasn’t able to put in a stop order because price was at my entry price. I switched it to a market order since that’s where price was at the time; and since it seemed to be moving, I wanted to get in. I ended up getting filled right at $16.24
Entry – $16.24
Target – $16.60
Stop – $16.15
R:R – 4
Exit – $16.15
It took under 2 minutes. Price pushed down and stopped me out pretty much right away.
A couple thing here: First of all, I took this trade long, when my marked bias was short. I realize that I’m trying to remain open to what’s being given to me, but I also need to really realize how much these things do follow equities. Especially on a day-to-day basis, so I need to stick with my original outlook.
The second thing is that this isn’t technically the setup I’m looking for right now. This was a pullback, but it pulled back off of a huge outlying move, not a routine move, or slight breakout. My thought process was that the pullback was a short pause before making another outsized move. It had happened a couple of times in the past, so I was hopeful.
In a way, it somewhat did. After stopping me out of the trade, price pushed back up to the day’s highs, but still didn’t quite reach 1R. This was a loser either way. Hindsight being 20/20, this wasn’t a good trade. I just forced something here.