Stock: NCLH
Result: +1.5R profit
Strategy: Lightning bolt
Long/Short: Short
Why did you take the trade?: Having seen NCLH drop to VWAP and then sort of dead cat bounce I was watching for a break below VWAP which would set up the lightning bolt. It did break below VWAP and I took my entry short with a stop back above VWAP.
What happened next?: The price continued to fall below VWAP. I took 50% partial at 2R (so 1R banked), and then took the rest out after seeing the price recover. The second partial is probably coming off it too early, you've potentially still got an ABCD short setting up for the second partial but I wasn't feeling the price action. It was also late in the session and I had things I needed to go do, so I figured just come off it, bank and shut down for the day.
How did you feel after taking the trade?: Quite pleased, obviously! I'm pleased I was patient waiting for my entry. At the same time a little disappointed that the stock didn't continue to sell off below VWAP. After my first partial I was really expecting a continued sell off, no support levels to bounce off, clean black space to drop into. It didn't happen (after this picture this price actually sprung back up above VWAP!)
What did you do well?: Waited for my entry.
What can you improve on?: I guess being more patient waiting for later partials to develop.