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Emilie_BOWS
Daily: dead cat bounce after big sell off day
Intraday:
Previous day was a big red day on many tech stocks. I was watching NVDA for a potential bounce. It opened below previous close but higher than previous low. So, it was a weak open and could also look like a bear flag consolidation. However, as it was already sold off all day yesterday (parabolic to the downside), I thought a break below previous low wouldn't have follow thru so I didn't look to sell and only looked for a bounce trade instead.
When it broke below yesterday low and quickly came back, I believed I saw a failed breakout move. That was exactly what I was waiting for so I could spot the "signal" right away. However the pattern wasn't all that clear and convincing (a longer tail and big green body hammer candle would be better) so I waited to enter on a pullback. It went up (~ a small breakout) and pulled back (the one red candle). When it went up again I got in. I scaled out near HOD, got back in on a pullback and scaled out near yesterday' important levels.
Execution detail:
| Date/time | Symbol | Side | Price | Position |
|---|---|---|---|---|
| 2017-06-12 10:10:12 | NVDA | buy | $143.500 | long |
| 2017-06-12 10:18:24 | NVDA | sell | $145.470 | long |
| 2017-06-12 11:10:13 | NVDA | buy | $146.530 | long |
| 2017-06-12 11:19:56 | NVDA | sell | $148.910 | long |
| 2017-06-12 11:32:39 | NVDA | sell | $151.350 | 0 |
Comments
Emilie_BOWS
Sorry I've been too occupied lately and forgot to put down some notes for the trade. I've just put the reasoning in the notes section.
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Hey,
What was the reasoning for your first entry? I figure the second buy was because of the EMAs catching up and curling under the price candles.
Thanks.