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Lenny

ORB 5 min breakdown, but got squuezed out. Rate the trade

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Hello guys,

This is a paper trading account, still first week papertrading

This was yesterday, March 20. Stocked gapped up, in the premarket it was showing some weakness. I decided to take the ORB break down, but got squuezed out I guess, within 2 seconds the stock was 2 USD higher.

Was it a good trade and good entry, and/or what other considerations should I have taken before taking this ORB breakdown?

Many thanks and kind regards,

 

ZM_ORB_Loser.png.843a9e150e4912074db44b188f282881.png

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my advice is

if you see a pattern like this on 1min chart

immagine.png.16111f4bfe8cd945e422ef6af790f1ee.png

the train has left and your only chance to step in is the pullback. do not enter or wait for pullback.

i know you can say it was a ORBD but those 5 red candles on the 1min chart tell me to wait

my question is: if it was an ORBD for you why havent you taken in to the  other side as ORBU?

Edited by peterB

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ZM is difficult to trade, very fast moves and big spreads.

Like Peter said above, it would be better to wait for a pullback. Also you have two possible resistance lines on your chart where you entered short. I made this mistake a lot. Aiman always says in trade review class. Don’t short at the support. Previous Day Close and the other red line there make that price level a possible support level.

Thanks for sharing.

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If you don’t have a mountain to climb, find one.

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I would not have went short right at a major support level being the PCL & YDHL Looking at the 5 min chart the 3rd candle would have been a better ORB entry (Long) with a better risk / reward. Just my thoughts

 

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Lenny, I'm working on ORBs too, as I'm sure many are.  I remember from my notes having been stopped out some time back  similar to your example above.  One of my "note to self" was how in mins 2, 3, 4 and 5 the volume just never showed up to the party.  Now I'm always leary when min 1 hogs all the volume.  Food for thought.

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I usually wait until a momentum is formed either up or down and enter at around Vwap. I tool a trade similar to yours yesterday and I entered just a little bit above the Vwap, but my exits were poor!

Screenshot 2020-06-16 at 8.45.17 AM.png

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