Shared by
mrideout
Daily:
Price levels: 9.19 @ 9 ema, 8.81, 7.52
Inst. Ownership: 93.70%
ATR: 1.12
AVOL: 45.8M
VOL: 213.8M
Float: 366.31M
Short float: 7.95%
Intraday:
After stopping out short, I flipped long again looking for a move to 8.00. Bids were thick on the L2 and moves that were sold into were small and quickly bought up. Price formed a shooting star type candle near the 7.52 level, and I decided to take profit when 7.40 could not hold.
I re-entered long on a double bottom formation at 7.39 near my prior exit to capture the remainder move hoping to get to 8.00. Price reached the 50 EMA on the 15 min chart, peaked, and began to reverse. On signs of weakness in the tape, I exited.
areas of improvement
- Initial entry was for a HOD break, which I'm not the most experienced with, but was a valid entry.
- First exit could have been sooner. Price was extended from the 9 ema on the 5 when the shooting star formed, so exiting on a new 5 min low or even ON the shooting star could have been good.
- Re-entry on the double bottom was excellent. You got re-engaged with the name which is something you've been working on. Keep it up.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2021-08-13 10:00:23 | WISH | buy | $7.189 | long |
| 2021-08-13 10:13:37 | WISH | buy | $7.160 | long |
| 2021-08-13 11:09:44 | WISH | sell | $7.350 | 0 |
| 2021-08-13 11:16:09 | WISH | buy | $7.398 | long |
| 2021-08-13 13:29:17 | WISH | sell | $7.620 | 0 |
Comments
mrideout
Thanks tradervue2020. The long thesis was definitely based on the daily chart looking extended from the 9 EMA, so I was expecting some short covering leading to a rally. However I've also seen days like this one that resulted in 2nd day plays, where the trend continued lower. There was a level at 7.52 (from trading days back in may/june) that I expected price to revert to, which it did later on the day.
The 5 min doji at 9:40am was definitely a good reversal signal, especially since it was a premarket level ($6.75) that was tested multiple times. I didn't take it as my entry because price had been in a range between 6.75 and 7.00, though in retrospect I probably should have. Most of my strategies are break out based, and I'm also a short biased trader. Going long and buying lows is very foreign to me.
tradervue2020
Thanks mrideout! Great analysis.
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Great trade on long side esp after bad earnings. Was the long thesis based on overextended daily? Also would 5m doji at 9:40 am be a reversal sign? I realize though that the break of HOD is probably a stronger signal.