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This trade was red because 1) I was shorting into weakness thinking support would break, which of-course it did not, it was still very green on the day, very far from my criteria for S5 leg 2. 2) I was shorting during the Squeeze/Choppy session at 12:48 mid day. 3) This was not a play especially down here at this support level, I was just asking to get squeezed out. DUMB ME.
Not only was the L3 leg 1 (morning breakout) overextended, but it also had multi-day resistance from 2 days earlier. Two very strong indictors. Also the risk reward was heavily in my favor to short once it got up to these levels. Just looking for the top and taking advantage of the pullback. Also this is a scalp trade, we want to exit ASAP right when it goes back to the breakout zone and avoid the Mid day choppy/squeeze session from 11am - 2pm.
Clear resistance at 14.50, clear support at 13.25, Plan was to start in mid range at 13.75 and add into pops towards top half of the channel. Once it hit 14.50, it would reverse and go back down. Covered into the cracks after it topped out at 13.70, 13.72, 13.56. Good patience on the way down. By all means this was a play that required patience. ADDS(on):1-13.78(2500),2 -13.75(1000),3-14.28 (1000),4 -14.49(1000),5-14.54(1000),6-14.45(1000).COVERS(off):1-13.712(2500),2-13.724(2500),3-13.56 (2500)
Even though this was still green we treat it like it was S5 leg 1, we filled into strength. Support was at 13 and we know that from the pre market bottom, before market opened we got a little spike pre market. When market opened we got that hard crack, enter after hard crack and anticipate it to go down to support at 13. We are treating this like the S5 leg 1, But for sure taking off before 13, Since its still green we know 13 would hold and it would lead to mid day bounce.
This pattern was part of the market open plan hoping for a spike up into 15.50, but we got the spike pre market and I didn't fill, Only got a little downside after it topped out, Got out at the double bottom or pre market lows, knowing I would fill again once market opened and it spiked up a bit. Still got close to making mistake #1, filling size into support then having to average up.
Made a big mistake on the early entry on this. Looking for a S5 leg 1,except it was still green on the day and it failed to realize this pattern only working when the environment is red. Filled 5k after the first crack, planning to add into pops with morning open as Risk. Once it ripped through HOD cut losses quickly and attack it higher. It held up very well on that first dip. The dip was above pre day high and pre lows. Shouldn't have filled into weakness on green day with soo much. support,
Re-shorted Midday bounce after it squeezed, Took second part off here after dip held. Got squeezed a bit on the second cover, should have taken it all off on first dip and first cover. Congrats to @Tradershocker for winning on the long side and recognizing strength, He has helped me see the other side of the game and respect green days when support holds and higher lows.
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