What did Andrew see in MU at open this morning?

[JasonH 47]

Below is what MU looked like when @Andrew Aziz decided to short it. What are the indicators here? For ORB, it hasn't broken out yet. And the Level 2 looks pretty benign. But sure enough, turned into a good trade.

 

 

 

Edited August 7, 2019 by JasonHeidecker
Replaced 'after' screenshot to capture exits in 3rd minute candle.

[SpoTT Trader 35]

Here are my opinions on what Andrew saw. Aug 5th opening of MU

- Pre-market conditions of MU were a continuous fade. Showing weekness. Perhaps short biast on it to begin with
- SPY on the low (influence)
- on open (9:30) there was attempt to break the high of the previous (pre-market) green candle. It failed to break that.
- In addition, it failed to break/hold V-WAP as well as 9 and 20 EMA
- Once the first minute candle closed, the price popped up just touching the V-WAP however fell easily/quickly indicating a short potential (this happens quickly remember)
- with anticipation of the price continuing to fall, Andrew place his short orders anticipating the break of the previous candle body and wick
- Andrew scalped his profits at multiple stages as it continued to go lower, 20-30 cent scalp range.  Very nice.

I'm not sure based on your screen grabs if Andrew closed his entire position on the second minute candle or if he held into the 3rd minute candle which would have rendered him another potential 30 cents on remaining balance of shares.

 

Hope you and others agree with what I have to say above.  If not, please share your ideas.

[JasonH 47]

21 hours ago, SpoTT Trader said:

- Once the first minute candle closed, the price popped up just touching the V-WAP however fell easily/quickly indicating a short potential (this happens quickly remember)

Thank you for the thoughtful responses @SpoTT Trader and @NinjaTrader. I think this quote from SpoTT is an important one. You can't see how quickly MU probably began to drop at this point (first screenshot). So along with the other things mentioned by SpoTT, it looked like a possible short opportunity.

[Alastair 110]

Look to the LEFT at the candle patterns......a low was broken....... at the low is a indecision candle which will offer resistance......notice on any chart past DOJIs offer resistance/support......will they hold ?....not known but its calculated risk....notice the breaking of past lows (esp on 15M) and if tht low is a DOJI style candle. Plus it breaks a DAILY level.  Its a good starting point in addition to the comments above. A lot of confluence to be bearish.  Processing all that info quickly on the fly is another skill or planning before the market opens is also a developed skill.

 

Good question/observations.....we should analyze more of his trades like this......take a few images as he trade and post here.  Very good question Jason.

Edited August 7, 2019 by Alastair Mowatt

[SpoTT Trader 35]

12 hours ago, NinjaTrader said:

In aggregate all those factors (thanks spoTT for a great explanation of each)  make this a "high conviction" trade. I wouldn't necessarily get hung up on one thing. Decision making in trading requires the ability to factor in a lot of different variables in synchrony.

I want to support this statement.  It is very important to know that trading is about a lot of different factors combined hopefully preparing you to make the best possible decision when choosing to enter/exit.  (That is why Andrew's books are a great read by the way!)