GTLB Trade on Mar 16, 2023 11:56 from Maarten: Tradervue User Stock Trades.

GTLB 14-3-23
Catalyst: Decent beat, loss
Setup: Negative earnings reaction: -32%. -4.35ATR
Technicals: Trend uncertain. LOD
Pre volume buzz: 37.2%

I think this can be a very strong setup. I am also taking a strong gap reversal setup into account: I can’t find any bad news, the weak reaction is huge and we’re at ATL.
Think this will be a 8/10 setup.

This might be a scenario where I want to hold a core for a strong close.

Checks in my favor:
- Good catalyst, huge gap down.
-Not strong/trending on D1 D2
-Market strong
-Clean price action strong volume.
Checks against me:
-Not a playbook setup.
Market reaction aligns: Yes (WRONG!!!)
Key levels near limiting RR: no
Potential CHOT: No
Trending on 10-15m chart: Yes

Trade plan:

Trade2hold variables:
-High conviction in catalyst, either very strong or weak.
- Strong technicals that are in line with the direction of the market.
- Elevated volume.
- Trends is strong.
- Room to trend on the daily.

Choose best fitting strategy that makes most sense in these conditions.

Entry strategy (pick one):.
- 25% range target.
- 5m new high/low.

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 think this stock had great potentials to be a strong gap reversal setup on the long side:
- Even though they reported a loss, they had a decent beat.
- Extreme gap down; over 4ATR
- Just reclaimed the all-time low in the premarket.
This is a fine thesis for D1, but the setup didn’t turn out that clean. It held the open and low and start to trend nonvolatile in during the last two hours. But it closed strong and therefore was a gap reversal. But it wasn’t a ZI, DFS, HON etc., like I want to see for A+ gap reversal long setups.

Then that's that, on to the next setup. I should never trade this D3 setup long since I don’t have an edge trading long setups on gap downs, especially on D3. I should never have touched it. It wasn’t a good short on day 1 either, but on D3 it had potential to fade. That would be going with the initial (D1) trend.
And yes this stock will probably mean revert in the next couple of days. But that doesn’t make it a playbook setup for me.