Thunder dome

[Michael Sanchez 53]

[MattfromNZ 55]

1 minute ago, Michael Sanchez said:

I made a similar entry to yours with AMD thismorning - not waiting the full 5mins and entering on the 4th candle so I could take my position close to VWAP. My one turned out better a little better than yours, but not by much. This trade could have easily worked out better for you I feel.

[Michael Sanchez 53]

[Michael Sanchez 53]

6 minutes ago, MattfromNZ said:

I made a similar entry to yours with AMD this morning - not waiting the full 5mins and entering on the 4th candle so I could take my position close to VWAP. My one turned out better a little better than yours, but not by much. This trade could have easily worked out better for you I feel.

I agree. I should have waited a little longer. Especially, on Fridays when stocks have a difficult time choosing a direction. 

[MattfromNZ 55]

Just now, Michael Sanchez said:

One thing I have learned recently, is to be really careful of taking ABCD's after a significant reversal. ABCD's are a trend continuation  pattern, so you need to really make sure that the new trend is strong if you are going to go with it. I don't see that in this case.

[NikkiB 22]

56 minutes ago, Michael Sanchez said:

AWESOME work man! I love using fixed risk hotkeys they make trading so much easier. I have been hearing a lot about the freeroll button but do not really understand it. Is there a webinar where Thor explains it by any chance?

@Michael Sanchez Oddly enough, I have this exact thing marked for my reference - Thor's "How to Setup and Use Fixed Risk Hotkeys" webinar, around minute 24 😉

[A_aron 27]

I would post my two  losing trades however I didn't have a plan let alone remember what I saw. Don't want to waste your time with shenanigan's. 


Date: 1-25-21
Stock: BBBY
Strategy: Price Action Pattern (Descending Triangle)
Long/Short: Long
Entry: 38.73
S/L: 38.12
Risk:  0.61

Plan of attack:
 Go long on the triangle. Take 50% of profits out at 3R, move S/L up to 1R. If breaks Hod use VPA to determine final exit. 

Why did you take the trade?:
Initially I saw a triangle forming on the 2 min chart jumped in short previously twice, I don’t remember why I did but I was getting tunnel vision and didn’t look at the longer time frame charts.  I am not super familiar with triangle patters. I thought that descending triangles move in the opposite direction ( so move up). I looked it up and sure enough descending generally breaks out to the short side.

 How did you feel after taking the trade?:
I got lucky that it moved on the long side.

What did you do well?:
- patience, for exits.
-Keeping psyc in check after 2 loses in a row.  

What can you improve on?:
-          Don’t trade a pattern you’re not very familiar with.  

Questions?
Do you see the descending triangle? Or do you see a symmetrical triangle?

[MattfromNZ 55]

3 hours ago, A_aron said:

Date: 1-25-21
Stock: BBBY
Strategy: Price Action Pattern (Descending Triangle)

 

I am not familiar with the descending triangle. VWAP was providing very strong support and there was no evidence that the price would drop. I got in after the support level moved up a bit and displayed a "mini ABCD". For me BBBY was an A+ setup for an ABCD on the 5min chart:

[Adam Lewis 64]

13 hours ago, A_aron said:

Questions?
Do you see the descending triangle? Or do you see a symmetrical triangle?

I guess I see a descending triangle, given the flat bottom running along what I imagine is VWAP. However, as Matt also said...

10 hours ago, MattfromNZ said:

For me BBBY was an A+ setup for an ABCD on the 5min chart

Given the support also provided by VWAP, which had been tested and proven several times, this was a very strong set up. You could call it any number of things: a descending triangle, a VWAP break, a bull flag, an ABCD pattern, a 3-bar play on the 15 min chart... I'd look closer at the fact there was strong buying followed by confirmation of VWAP support and then a spike in buying volume right before you entered. Altogether, very good stuff, well done!

[Adam Lewis 64]

On 1/23/2021 at 3:10 AM, Michael Sanchez said:

As I'm practicing with ABCDs, I'm trying harder to get entries deep within the range, providing good tight stops. One potential issue here is your entry is right on the breakout of the range. Where you end up having to stop out - you're technically still within the consolidation range and the set up might still be valid, but you've rightly stopped out once your R stop is triggered. Your second entry is better, I think, and provides a much tighter stop. Can I ask what the horizontal line is right below your first entry? Is that a PM / daily level you've got marked? It seems to have been acting as support.  

[Adam Lewis 64]

Stock: PLTR, second entry

Result: Break even

Strategy: ABCD

Long/Short: Long

Entry: 38.70

Risk: 20c 

S/L: In theory 38.50 but I stopped out break even in the end.

Why did you take the trade?: The trade in question here is the second one. The first one was a nice ABCD which although I took a first partial a little too quickly on gave me a nice 2R profit. The second trade is of interest. PLTR pulled back and appeared to hold 9EMA on the 1min chart. After a brief dip it gained ground again. Sensing a retest of HOD I took a long.

What happened next?: At one point I was +1R, but the price fell back to break even. The next candle opened, and I decided to come off this position and not wait to be stopped out. The candle where my entry was showed a spinning top, a possibly reversal signal, which after the previous reversal up at 39.60 made me concerned. I felt this was now a coin flip and no longer confident of my entry I chose to come out early at pretty much break even. This ended up proving to be a good decision, the stock reversed and went on to sell off heavily.

How did you feel after taking the trade?: Quite pleased I reacted well seeing weakness in the stock. This was my second and final trade of the session.

What did you do well?: I do think my decision to come out of this position was a good one. Sure, 'what if it'd have popped up?' - well then I'd have had to shrug and say 'oh well, shit happens' and move on. 

What can you improve on?: I'm not sure the original entry was correct. I'm very much learning about this pattern.

Questions?: What would you have done? Exited and protected your capital, or held on until your stop was triggered? 

[MattfromNZ 55]

7 hours ago, Adam Lewis said:

Stock: PLTR, second entry

Result: Break even

Strategy: ABCD

Long/Short: Long

Entry: 38.70

Risk: 20c 

S/L: In theory 38.50 but I stopped out break even in the end.

Why did you take the trade?: The trade in question here is the second one. The first one was a nice ABCD which although I took a first partial a little too quickly on gave me a nice 2R profit. The second trade is of interest. PLTR pulled back and appeared to hold 9EMA on the 1min chart. After a brief dip it gained ground again. Sensing a retest of HOD I took a long.

What happened next?: At one point I was +1R, but the price fell back to break even. The next candle opened, and I decided to come off this position and not wait to be stopped out. The candle where my entry was showed a spinning top, a possibly reversal signal, which after the previous reversal up at 39.60 made me concerned. I felt this was now a coin flip and no longer confident of my entry I chose to come out early at pretty much break even. This ended up proving to be a good decision, the stock reversed and went on to sell off heavily.

How did you feel after taking the trade?: Quite pleased I reacted well seeing weakness in the stock. This was my second and final trade of the session.

What did you do well?: I do think my decision to come out of this position was a good one. Sure, 'what if it'd have popped up?' - well then I'd have had to shrug and say 'oh well, shit happens' and move on. 

What can you improve on?: I'm not sure the original entry was correct. I'm very much learning about this pattern.

Questions?: What would you have done? Exited and protected your capital, or held on until your stop was triggered? 

I actually like your second entry much better than your first. In your first you are entering after very little pullback when the price is extended from the 9ma. You were just lucky that the price didn't reverse earlier. The second looked entry looked good, there was an appropriate sized pullback, the price dipped below the 9ma and you entered. Could have gone your way, however the biggest thing that was going against you was that PLTR had already had a $5 move, and the ATR of PLTR is only $2.74. The best ABCD entry for this setup I feel was on the 6th bar.

[MattfromNZ 55]

OK, BBBY was the major part of my disaster of a trading day this morning. I lost 4R on this thing.

Started off with ORB that got stopped out. Fair enough. I re-entered then bailed after 5mins when I thought to myself "this thing isn't breaking out, I don't have a strategy here". In retrospect it would have worked out, but I had no way of knowing this.

I made a chasing trade of an ABCD that I bailed on at break even.

I made two 1R loss trades by ignoring double bottom/tops.

I tried to trade VWAP, and to be fair this was only my second attempt. I had convinced myself that the price had made a W shape, and was doing a VWAP reversal, but as you can see it ended up being a clear lightning bolt pattern that I did end up taking short, It was just unlucky the move was so small.

My final trade was a long on a potential ABCD. I need to make a rule that after say, 10am, any ABCDs have to be backed up by the 5min chart. This would have been a good trade, but I just entered too early. After the price formed a reverse hammer I bailed on it.

[MattfromNZ 55]

I also had a few trades like this today where I entered, and bailed because of lack of confidence. 

[Adam Lewis 64]

7 hours ago, MattfromNZ said:

OK, BBBY was the major part of my disaster of a trading day this morning.

Sorry it didn't work out today Matt. Take stock and figure out where you went wrong. This is all part of the journey remember!

One general comment overall, as opposed to looking at any of the trades here (your notes are pretty clear already) - at which point here would you say 'you know this isn't working out, let's stop for today'? Your second ORB entry is better than the first (I think the first entry is too tight for an ORB), and it does move into profit before falling back and stopping out. Ok, so two trades didn't work out on the open, but they were disciplined trades that followed a strategy. The third trade, yep that's a bit of a chase and you did well to come out B/E. So three trades in, none of them have worked out and the third one was beginning to lack a little discipline. Is this the point where you either say 'I'm done with BBBY today', or even 'I'm done today'? I speak from experience, in the past I've wondered why I've kept digging once in a hole!