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kylejensen34_BOWS
Play: Intraday upward trending channel, possible daily flag break
Bought(32.24) at bottom of trend channel and right above 20sma(light resistance) in anticipation of bounce back to top of channel with initial target of HOD and daily flag resistance @ 13.70. Stop set at previous low of 32.14. Stock initially bounced but failed to make a higher high and started getting volatile so lowered target to 13.60 which it also didn't hit. Started riding up right on 20SMA so moved stop loss to 32.28 to at least cover commissions. -*-*-For some reason Prodigio cancelled my stop order twice and gave the reason "Order cancelled to prevent position overshoot" so if anyone knows what that means I would appreciate it? Possibly won't close position if drops x% lower than your stop?-*-*- and so I closed it manually next time it hit 32.28
**Closed position because it violated the trade I intended to make and broke out of the up trend/channel, but had I kept my initial stop loss and target it would have hit by the end of the day. Any comments on this would be greatly appreciated?
Execution detail:
Comments
kylejensen34_BOWS
John, thank you for the comment. I believed the 20SMA would hold since the stock seemed to be riding it up all day except for a quick dip during the lull of lunch hour. Also, it was making subsequent higher highs and higher lows and developing an intraday channeI so the setup I was using was a P/B to intraday support (ma and trendline). The stock did bounce where I expected it too, I just should have had my target lower due to the "top of flag" resistance it was hitting without the needed volume.
johnc_BOWS
Ah I see. My only other advice (and this is something I'm currently struggling with) is respect your stop loss. If you set a good stop loss (i.e. you're able to describe why you set it and you're able to back it up with evidence), you won't really have to worry about your stock anymore until it breaks out or gets sold.
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No setup had formed at the point where you entered. Remember, arguably the most important part of trading is risk management. At your entry point, there was no reason to believe that the MA would hold. In order to confirm that a support area is ACTUALLY a support area, it would be a good idea to let it give you a 5 minute candle (or so) that confirms that a price area will hold.