9/27/22
Grade: B+
Goals: Be more selective and raise winning %
Reminders/Aphorisms:
- Don't fight the trend;
- Be patient, take good set-ups
- Respect at least 2:1 R/R
Overview: Couldn't trade yetserday by review of yesterday showed a clear rejection at the 370 supply zone (prior demand zone) and move down all day, bouncing towards the end of the day at the 363-362 demand zone. Premarket appears to be moving up significantly. I expect a rejection at the 370 level again as this is where the downtrend line is as well. However I have to be careful if there is a trendbreak and hold here. Interestingly the Weekly Chart also closed yesterday below the 200 EMA which was at 367.57, which could mean we get a larger move down.
Trade Analysis:
- Trade 1 was the pullup on a perfect rejection at the 370 zone. I took my partial at 50c, and took my runner too early at $1, i should have let it run more and taken it on the first green candle. There was no reason to close the 2nd part.
- Trade 2 was an asshole trade. I was looking for the rejection of the trendline for a move down with 25/50c R/R. I didn't respect my risk and gave it a little more room over the full dollar of 367. The only upside is that I took it with small share size since I knew it was not a quality setup (10 shares). This was a boredom trade. The better trade would have been the trend break and retest long.
- NOTES: My first trade was picture perfect I would have given myself an A if I didn't taken the second trade. However since I didn't trade yesterday I was a lttle gun shy and missed a couple of very clean and easy trades. The first gray arrow was the test of the strong 370 supply zone that we have been ranging between. This was a clean trade, although a little riskier since it was leg 1 of the trade. The 2nd gray arrow was the 3rd leg down, a perfect rejection off of VWAP and the 20/9 EMA which I could have taken. The 3rd gray arrow was the 2nd entry point for the longer trade of the 2nd arrow. Again a clean rejection off the trend line for a big time move.
Lesson moving forward: Don't be afraid to take the quality setups, don't boredom trade.