MDB Trade on Mar 9, 2023 13:25 from Maarten: Tradervue User Stock Trades.

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Maarten

 

MDB 9-3-23
Catalyst: Very strong beat, revenue outlook falls short.
Setup: Negative earnings reaction: -10% -2.5ATR
Technicals:
Broken daily. Trending up cleanly since December. Bounced of the 50SMA last week. Still above PWL (support)
Pre volume buzz: 7.1%
Don’t think the alignment is too strong. Has some support nearby. Catalyst is not truly weak. Volume is good. 6/10.

How successful were you in identifying the market environment and playbook variables during the trading session?

Did very well. Wanted to fade the move as I was supposed to. Was not going long in this setup. The wedge pattern I identified well, but too late.
Also in advantage I did rate this a 6/10 setup. For a gap reversal fade that should mean that we can’t trend all day and close weak/red. The main thing I missed was the importance of the market structure:
1) 50SMA support area was very close. Didn’t have this level marked.
2) The PWL was also very close. Noticed this premarket but didn’t mark it on my chart.
 Diminishes move, lesser setup.
What was the optimal trade management strategy, 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?

Setup:
Gap reversal fade – HTF Wedge break down
Trade2hold should always be the right strategy.
Market structure: unfavorable given key levels limiting RR.

What was the ideal entry point? How does that compare to your entry? What signals (if any) did the market provide, which could have led to an improved entry?

Starter entry
-25% of size could be entered above VWAP, when a lower high is made.
-Should be on high conviction setups only.

Wedge core entry
Below VWAP near the lower high as
- Price has reclaimed the 20EMA.
Entry could be:
-25% entry from the low of the wedge.
-5m new low once price starts to break down quickly.

Don’t chase:
-Don’t enter below the previous (higher) low.
 Scalp/m2m instead  Wait for the first trend PB into the 20EMA or above.

Was the initial stop location appropriate? Was it in accordance with your 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?

Stop should be above the previous high. I am entering in the consolidation. Which means sometimes I will get stopped out falsely here.

What was the optimal exit location or locations, in order to minimize risk when wrong or maximize gain when right? How does this compare to your exit location? What signals (if any) did the market provide to identify this ideal exit location?

Given the market structure wasn’t favorable. Taking off some risk at support was the right thing to do.

Market structure unfavorable
-IF price doesn’t successfully break the key level, THEN sell core position as close to this level as possible.


Execution detail:

Date/time Symbol Side Price Position
2023-03-09 13:25:34 MDB sell $208.510 short
2023-03-09 14:40:21 MDB buy $209.820 0


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