ZS Trade on Mar 6, 2023 11:01 from Maarten: Tradervue User Stock Trades.

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Maarten

 

ZS 3-3-23
Catalyst: Earnings beat, outlook disappoints
Setup: Negative earnings reaction -11%, about 2.5ATR
Technicals: Very bullish price action last weeks. Not it has gapped down the 50SMA. If it can stay below it looks quite bearish and doesn’t have a clear near support level.
Pre volume buzz: 6.4%

16:28 D2 reversal
Broke through HOD1on 275% volume which is okay for a D2 setup. Currently up 0.83ATR on the day and counting. Broke through the 50SMA as well
I would say this is clearly the start of a trend. Looks promising and strong.
If this was not a valid trade:
What signals were present that should have led you to avoid that trade? Screenshot the chart BEFORE and DURING it was setting up. Add notes.

I am underperforming in trades were the intraday reaction is reversing the direction of the gap and catalyst. My data in tradervue is very clear about this. We have a negative earnings reaction on D1, so I should focus on short setups on D1.
Just because on D2 price breaks HOD1, it doesn’t mean I should trade it. I should trade only D2 reversals when D1 is extremely oversold/overbought and the catalyst isn’t that bad/good after all.

**Having got into the trade, was the initial stop location appropriate? Was it in accordance with my trading plan? Where, with the benefit of hindsight, should the stop have been placed? What signals (if any) did the market provide to identify that location?
**

It wasn’t according with the trading plan. I was planning for a move2move traded on a wedge pattern breakout. I should have stopped out for a new 5m low and I didn’t on my first trade.

What was the optimal way to manage this trade, in order to minimize risk when wrong or maximize gain when right? How does that compare to your trade management strategy? What signals (if any) did the market provide for moving the stop to breakeven, or beyond?

Optimal management was to take a small loss and stick to trade strategy. But I entered again and didn’t respect the entry rules. This is because I hadn’t planned the trade properly. Now I have came up with a detailed checklist that focuses on formulating a trade idea and picking the right trade management. Shouldn’t have taken it.

Solution: DRC goal is to only trade with the bigger picture trend AND focus on HTF trend confirmation.


Execution detail:

Date/time Symbol Side Price Position
2023-03-06 11:01:22 ZS buy $125.270 long
2023-03-06 11:13:42 ZS sell $124.540 0
2023-03-06 11:19:35 ZS buy $125.130 long
2023-03-06 11:24:27 ZS sell $124.450 0


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