PBR Trade 5-24-18 what did I do wrong?

[sawtooth500 33]

See the below screenshot, it's 9:30 AM PBR on 5-24-18. I saw it going down... it had volume. At 9:33 I saw a pullback with less volume... then at 9:24 I saw it stalling with even less volume I and I thought... ok opening range breakdown so I went short. At 9:35 it was still lingering, so I thought maybe the pullback isn't complete and I added to my short position, and then it turned against me and it went long. I got out too late, and then I reversed to a long position.

 

So I thought that all the signals were here for an opening range breakdown, but I was wrong. Where was I wrong in my thought process?

 

[Robert H 455]

It looked like an ORBD for me as well. However, the entry at 9:35 AM @ 13.02 would place it 0.25 from VWAP. That means a profit target of 12.50 would be needed for 2:1. Given how much it had already gapped down, that type of drop would be quite improbable.

 

Also, the opening candle was 0.30 with a large bottom wick. For a $13 stock like PBR, 0.30 is quite large for an ORB.

 

Adding to your short on the new 1-min high was probably unncessary since it was making higher-highs and higher-lows on the 1-min. Nothing wrong with your thought process. Sometimes ORBs just don't work out.

[Carlos M. 232]

Robert I agree with you as well.

 

Your entry here was good this is what I look for in ORBD and this stock had the same behavior of a stock that seemed like it was going to test newer lows. It didn’t and I also got stopped out as well on PBR today.

 

The pull back after the first drop was a bit higher than I normally like. I should had waited for a better confirmation it was dropping.

 

Carlos