In this chart for $WPCS you can see the initial breakout to 3, followed by consolidation holding 2.4 very well. Later in the afternoon the DMA 50 and SMA 20 lines cross and it began to make some higher lows and uptrend, At this point I noticed quite a few similarities between this stock and and $SGNL's chart from yesterday and decided that if it fell below the SMA 20 and DMA 50 lines and those two lines crossed I would short it. You can see two times where this comes very close to happening, accompanied by a double top and then a breakout past that. I reserved my shares when it double topped and I honestly did not think it would go much higher, but I was wrong, so I am glad that I was patient and followed through with my entry plan 100% because I would have been squeezed if I got cocky and entered before my actual indicators in attempt to get a higher entry. IMO the entire runup past that double top was due to SSR, hype, and simply momentum traders so I knew it couldn't stay up forever. In the last 10 minutes it fell below DMA 50 and SMA 20 and the lines crossed, I shorted 2K shares exactly there at 3.2 and nearly instantly it began falling. In A/H it got a bit of a jump and I was preparing to cover but it did the exact same thing as on its way up but in reverse... the DMA 50 and SMA 20 got quite close to reversing the cross but failed and it tanked, I covered at 2.17 making my most successful trade yet.
In all I can say I went in to this trade with a very detailed plan and that is why it worked.
Join now or log in to leave a comment