Huntermac's Trading Journal

[Rob C 826]

Great VWAP bounce trades (false break outs). All of them. I really like CYBR where you were stopped out, but saw the setup again and had a winning trade.

[huntermac 28]

3 hours ago, Rob C said:

Great VWAP bounce trades (false break outs). All of them. I really like CYBR where you were stopped out, but saw the setup again and had a winning trade.

Thanks, Rob! 

I tried a few of these VWAP bounce trades last week and really enjoy trading them. I will probably stick with them and continue to capitalize on them and understand these trades better. These trades are easier for me to visualize and make more split second decisions on, particularly on the 1/2 minute charts. I think that's definitely important for me as a newer trader. To have a solid strategy where I can easily visualize the stop loss and targets. 

[huntermac 28]

2-13-2020 

Overall, good morning. I took 2 trades in the early morning. 

First trade $BE

I was looking at BE on the open. It shot above VWAP and extended pretty far. Monitored and waited for a bounce off the VWAP. Saw an ABCD pattern on the 5. When it broke the support I anticipated at that point it would test VWAP. Waited for it to break on the 1m and got into the trade long. Original stop loss was $9.00 with an original target of around 9.60 for a 2R. I readjusted my stop loss to 9.12 and then break-even as it continued up. Took my first partial at 9.35 (after my first adjustment of my stop loss). I meant to sell off another partial at 9.46, but ended up messing up the hot key and buying into another position lol. Then sold out of my entire position at around 9.55. 

 

Second trade $KHC

I saw this trade was just ripping downwards. I was originally waiting on a pullback to VWAP, but realized it was probably going to just keep ripping for a while. I knew it would pull back to some extent and reject a level, so I waited. I saw it pull back to the 20EMA on the 1 minute and go above. When it got rejected I took the trade short. Original stop loss was at 27.80, readjusted it later to just above break-even. Took my first partial at around 27.45. When it pushed through the 9EMA on that higher 1 minute candle, I got out of the entire position. 

 

[huntermac 28]

2-14-2020

Had to work today, was able to get a good early morning trade in on $ROKU. 

Trades 1 & 2 $ROKU -

I saw ROKU traded down at the open. Saw a very strong engulfing candle. I saw the proceeding candle blow through VWAP with absolute ease. On the third candle, I saw it bounce off  the VWAP pretty hard once, it came back to the VWAP again, I took the trade long. It immediately went against me and I got stopped out. 

Continued to watch the trade for a possibly reverse and bounce off the VWAP. I found a hard bounce off the 20EMA on the 1 minute. I find the 20EMA is a very powerful resistance level on the 1 minute. I typically find that if it's being respected, then it's a great level to use. When I saw the hard reject at that level, I took the trade short. My stop loss was set at VWAP. I saw it continued to use the 9EMA as support. I rode it down to my target at 145.60 and took my first partial and then remaining ones shortly after. 

Overall, not a bad morning. I did well by sticking to my stop losses and taking my profits at my target. I do not typically trade in the first 5 minutes and therefore broke that rule. I usually use the first 5 minutes to help me ascertain the stocks general sentiment. 

[hailchaser2 185]

Is your VWAP the blue line? If so, I think mine is off quite a bit, it’s the red line. I noticed that mine were charted a noticeable distance from the VWAP number in the trading montage.

 

[huntermac 28]

On 2/15/2020 at 11:26 AM, hailchaser2 said:

Is your VWAP the blue line? If so, I think mine is off quite a bit, it’s the red line. I noticed that mine were charted a noticeable distance from the VWAP number in the trading montage.

 

Yes, the blue line is my VWAP. I've seen discussions on here about the fluctuations that charts show of the VWAP. For example, when you toggle between the 1m and 5m chart, you'll find the VWAP slightly differs. For the most accurate VWAP level, I look at the number on the Montage and make sure it's pretty close to what my chart is showing me. Interesting though, not sure why that happens. It also appears both of our charts are 1 minute charts.. 

[hailchaser2 185]

I wonder if I have a setting wrong somehow. I don’t believe I changed anything in the study, but I will have to double check. Because we both show one minute and it appears to be a dollar different on the sixth candle. $150 on yours $149 on mine.

[huntermac 28]

2-27-2020

Alright, I'll be honest.. Been slacking on the journal entries lately. Not going to try to make that a habit. The last week has essentially just been filled with me experimenting more on early morning strategies. I'm finding that I find some level of consistency in trading VWAP false breaks or VWAP bounces during the time-frame of 0950-1030. I find that generally I do not have much luck with ORBs or any sort of momentum trade. I'm continuing to develop my rules. It's been around 5-6 weeks since I began in simulation, so I'm going to narrow down to specific strategies and narrowing those rules to trade off them. So I'm going to stick with VWAP false breaks and VWAP bounces at the 0950-1030 hours. I'll also consider ABCD/reverse ABCD patterns in the early morning, only if the pattern is very clear with a tight stop loss. 

 

Trades 1 & 2 MRNA-

I saw a nice extension from the moving averages. Waited on the pull back and saw a great reverse ABCD pattern on the 1 & 2 minute charts. I meant to get in a little higher than where I did, but there was some minor slippage. It then consolidated for a little and I almost got stopped out a couple times but thankfully I did not. Took partials until it failed to make a new 1 minute low.

 

 

Trade 2. Was already short biased on MRNA based off the strong bearish open. It climbed back up on lower relative volume, saw a good reject just below VWAP, took the trade short, set the stop loss just above VWAP. I failed to partial well on this one. The second partial would've been the ideal place to start, not the first or third areas. 

 

Trade 3 SPCE -

Around 1000 I saw it began to climb towards VWAP. I like to watch a stock climb slowly up towards VWAP on lower relative volume without any huge bull candles. This shows weakness in the movement and higher probability for a bounce off VWAP, which it did in this case. I got out of the trade at 2R, but man did that keep dropping!

 

 

Good day for me overall, bad day for the markets though in general. Good opportunities for long-term purchases I suppose, but I'll stick to the day trading for now

 

[huntermac 28]

3-2-2020

Alright, got a few trades in today which all worked out pretty well for me. 

Trades 1 & 2 $CCL-

Got stopped out on my first trade. Saw a potential reverse ABCD and what appeared to be a test near VWAP. I took the trade short and got stopped out above the VWAP. Evidentally, it was not done testing the VWAP. Shortly after that, I got back into the trade near the same spot I entered the first time. Set my stop just above VWAP and got about 2R out of it. 

 

Trade 3 $NVAX-

Saw it was very bearish at the open. Saw a gradual climb to VWAP. It broke through and was rejected and then consolidated right at VWAP. Waited for a break of the 9/50EMA on the 1 minute and took it short then rode it down. 

 

 

Trade 4 $ZM-

I was waiting for a bounce off VWAP, but saw it got rejected at the 50MA on the 1 minute. I figured it was probably not going to make it completely all the way to VWAP so I took it short. Stop loss at VWAP, didn't completely hit my target, took my first partial at around 1.5R and then I saw that bullish candle break those moving averages so I got completely out. 

 

EDIT: Forgot to put my 1st trade with $AMD on here.. 

$AMD-

Saw a three-bar play on the 1 minute chart. Saw the first bearish candle. Second created an equal bottom and only retracted roughly 50% of the preceding candle. Took it short on the third candle at the break.

 

Edited March 2, 2020 by huntermac

[huntermac 28]

3-3-2020 -

Done trading for the day. Started off with a great trade with BYND. Got shook out of what I thought was a good trade on AMD when the SPY decided to absolutely rip me out of my position at 1000. With that market-wide rip it kind of threw off my typical VWAP bounce trades at around that 1000 hours. I felt I wouldn't feel comfortable getting into any further positions, so I ended my day where I was. 

 

$BYND trades 1, 2, & 3 -

First trade was on a reverse ABCD pattern on the 1 minute, also looked good on the 2 minute. It was holding VWAP as a resistance real well. Started taking partials at around 2R. Stop loss right above VWAP. At around 0955, I saw what I thought was a false break on VWAP, and it kept hitting that 99.90 technical level, took the trade short and got stopped out. I saw it cracked the VWAP and 9/20 EMA levels, so I took it short again. Stop loss at the 99.90 level again with a target just above low of the day. At about this time the SPY ripped up and I got stopped out again. 

 

$AMD -

I knew AMD had been gapping up and started slightly long biased. I saw it crack through ALL of those moving averages and VWAP at once and then hold it, so I went long. Stop loss below all of the moving averages and VWAP. I messed up my hotkeys, I meant to take a 50% partial at that 49.15 level, which was right around 2R, but accidentally bought more into the position and then it reversed and I got stopped out.. Really need to be conscience of these hotkeys, I know its bound to happen, but I would've been slightly green on this trade had I not messed that up. 

 

 

$TLRY-

 TLRY was ripping up at the open. I should've taken the daily more into consideration on this trade, as it's honestly been getting beat down to death. It was also gapping down in the pre-market. I took this trade as a VWAP bounce. Stop loss set right below that 50MA, target was right below high of the day. Ended up getting stopped out on this. 

 

 

Pros: I stuck to my stop losses. I got out of all trading when I felt thrown off from the big movement on SPY, which took away from how I originally planned on trading at that time. 

Cons: I need to stay more cognizant of how pre-market and daily levels look when trading a false VWAP break or bounce. I think those factors can contribute more greatly on whether the bounce/break is indeed false or not. TLRY was definitely not an A setup and I knew that going into the trade. I need to stay on top of hot keys, as shown in the AMD trade, that can be a matter of keeping the trade green or even break-even. I'm frustrated with that blunder as-is, but couldn't imagine my frustration if it was outside of the simulator making such a careless mistake. 

[Rob C 826]

Awesome keeping to your stops. I had trouble with in SIM. I treated SIM too lightly. I can tell you are treating SIM like it is live. Though it creates more stress now it REALLY helps the transition to live. And don't worry about hotkey mistakes. That reduces, especially when you finalize your DAS layout.

[huntermac 28]

03-11-2020

Have today and tomorrow off of work. Was able to get some trading in this morning.

I've been trying recently to dabble in other trading strategies other than my typical 0950-1030 hours VWAP bounce trades. Most recently, I've been trying to trade ABCD patterns in the early market hours before the VWAP trades. Not trades I typically take, just trying to expand on strategies to trade. Not too much luck on these trades this morning though.

Definitely some over trading today, but only due to the fact I'm trying to experiment with more ABCD trades. I'll probably start dabbling with this in replay mode as well.

 

$PDD -

I attempted an ABCD trade off the 1 minute chart on PDD. I saw it bounced off the 9EMA, took the trade long and got stopped out. Things to consider in the future: PDD was gapping down. The 5 minute candle was very extended. Those two combined should've kept me a little more short biased on this trade.

$AAL-

Around 1015, I saw a VWAP bounce off of AAL. I always like to see a gradual movement back towards VWAP and then take my position right at VWAP. Got stopped out on my first trade, took a second attempt at it and succeeded.

 

$DXC-

Around 0950 hours I tried to take a VWAP bounce trade off of $DXC. I saw resistance held the 20EMA. I set my stop slightly above VWAP. I saw it failed to hold above VWAP on heavier volume on the candle after I got into the trade, but I eventually got stopped out.

 

$TDOC-

I took this as a reverse ABCD trade. Saw it holding the 9EMA on the 1 minute. I anticipated a break of the 146 level. Took it short around 147.50 set my stop loss right around the 9EMA on the 1m.

$INO-

Took this trade as a VWAP bounce. Took that first partial because it was struggling and I didn't see any volume on the L2 to indicate it was going to push the $7.40 level. Hit my stop loss and I moved on. I think sometimes I set my stop loss so tight I do not give it room to breath. If I had set it slightly below that 50MA I would've made my 2R on this trade. Something to jot down and remain conscience of in the future.