How to rationalize this trade?

[Yardley 6]

I was replaying one of Andrew's old trade and interestingly, both Andrew and I seem to have had the same thought process. Here's a screenshot of the trade (Andrew's is on the left and mine on the right). Andrew and I took the same trade at point A . My stop loss was at the VWAP (red line), but as a stunned Deer confronting the headlights, I let it go down to the next MA (shown in blue circle). Luckily, it bounced back and got out at B. In his recap Andrew didn't mention why he added more on its way down and even let it go down to the 50 day MA. Can one of the experienced trades explain why you (or Andrew) would have done that?

[Kasper 13]

I'm not sure about Andrews thought process but i know how I would have traded this.

In this case I would only buy 50% of my share size because of the big move on the 1 min chart. I would add to my position on the way down for a better entry and start to scale out above the high of the day.

Also, what are you seeing on the Level 2? are there a bunch of buyers at the MA 50 level?

I think Andrew added because he was confident of a small move to the upside and he was willing to take a bigger loss if the price closed below all the lines.

Kasper

Edited October 13, 2019 by Kasper

[Andrew Aziz 98]

Kasper, the best entry on these abcd or ORBs are when a new 1 min candlestick makes a high, where I added my 3rd entry. But I went too early, and I should not have, but I always go small share size at the first scale. in It is not a good habit, so I kind of avoid promoting this. 

 

The final stop loss for me was below moving averages.