Shared by
dpaleo
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really nice 1min climax bar. Tried to get more than 100 shs on but had to add lower. Obvi left a lot of meat on bone by covering all by vwap. Was the 15min move off open, an almost 2x ATR move, so overdone that there wasnt gonna be any juice left so shoulda held better? Was opening 15 min volume so great that once the buyers exhausted gravity had to take over?
Execution detail:
| Date/time | Symbol | Qty | Price | Position |
|---|---|---|---|---|
| 2023-04-20 09:44:00 | TSM | -100 | $91.860 | -100 |
| 2023-04-20 09:44:45 | TSM | -100 | $91.310 | -200 |
| 2023-04-20 09:45:12 | TSM | -200 | $91.240 | -400 |
| 2023-04-20 09:45:49 | TSM | -200 | $91.120 | -600 |
| 2023-04-20 09:50:39 | TSM | 100 | $90.820 | -500 |
| 2023-04-20 09:55:39 | TSM | 50 | $90.750 | -450 |
| 2023-04-20 09:56:20 | TSM | 100 | $90.660 | -350 |
| 2023-04-20 09:56:33 | TSM | 200 | $90.570 | -150 |
| 2023-04-20 10:12:36 | TSM | 50 | $90.420 | -100 |
| 2023-04-20 10:14:16 | TSM | 20 | $90.710 | -80 |
| 2023-04-20 10:14:16 | TSM | 80 | $90.720 | 0 |
Comments
dpaleo
Glad to hear they are helpful Rod!
My ideal A+ short setup is a parabolic advance that contains at least three 5min expanding candles (each longer than previous) that provides extension away from MAs. Each subsequent volume candle is also greater, which helps provide an eventual climax. This extension on the 5min chart should be big enough that the daily candles is large relative to others (so a move that has multiple ATRs). And yes, if the daily chart is also extended that makes the setup even better (ie higher probability). The 1min chart should have similar characteristics and ideally a candle with way more volume vs preceding, which signifies climax. Nowadays those signals get tested more often bc algos know what a bunch of stops will be placed above that candles highs, so double tops are more prevalent.
Other factors: short interest (less the better), float (higher the better), catalysts, etc
Rodrig
Thanks for taking the time to explain your setup in details.
I am also more comfortable trading on the short side except that I am focusing on catching the back side on a higher TF (Daily chart).
From what I see, your trading style is centered around momentum and trying to catch the reversal of an over-extended move intra-day. Your entries (& re-entries) are very good in that regards plus you do give quite some room to your stop losses which often plays in your favor.
I like the fact that you do use a very specific entry system (almost systematic) coupled with some discretion maybe on the exact entry timing.
Am curious, do you actually use hard stop of mental stops and how do you define its location ?
Finally, how do you time your adds & add-backs to your position usually ?
Apologies for all the questions but your answers do help
Hey Rod,
You are correct in your assessment of my trading style.
I mostly use hard stops. They are typically above or below the pivot points of the reversal. I'm trying to give them some room above or below bc the algos know there will be stops at new highs/lows. But if i m sized in fully I'll have a full or partial stop at that level and not be afraid to retrade if it immediately fails, which indicates it was a stop run.
Adds will be on confirmations, either of backside or breaks of key levels.
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@dpaleo
I have been looking at some of your trades+comments which are great to see and useful for a developing trader like me.
I was wondering if you could share what are looking at before shorting a stock? what are the triggers, daily chart over-extension, intraday price action / Patterns, are you using any indicator?
Thanks in advance
rgds
Rod