2R day for me today on 2 trades.
The first was CROX. This one was frustrating when it stopped BE and eventually when back up and hit target. I'll steal Luke's write up. Good Daily Gap. Nice double bottom, breaking above the 21EMA with higher lows. Would have been nice if the 2’ Triangle at $75.00 had broken to the upside.
The second trade was the SRPT that Anmol called. Entry was over 87, I used stop of 85.50. It got to my 90 target pretty painlessly. I loved the strong bounce back after breaking the LOD.
Earlier I had called a short in SRPT under the LOD. I got extremely lucky and got skipped on the trade as it broke down sharply but bounced right back up. The bounce was so strong, which is why I decided to go with Anmol's call.
My thinking at the time was if it got under the low it was a failed gap on a stock that was extremely weak the prior day. It did have enough room to get to target. Flawed logic obviously so I thank my luck stars for getting skipped.
2 trades for me today with +1.5R total
1st Trade QCOM +2R
148.39/149.97 exit 143.25
12% gap down under pivot support and 50ma after a strong daily double top rejection,. I took it on a congestion breakdown with a fairly wide stop, leaving my 2R target 50c over its ATR, slow but consistent move down with great RW, hit my target on the penny before it bounced.
2nd Trade AQB -0.5R
9.40/9.70 exit 9.56
I rarely trade stocks under $10 and even more rarely short them. I liked this daily chart as it broke its uptrend channel and stayed under a strong 9.50 support line enough room to its daily 50ma. I entered after a pullback with a fairly wide stop but only 1/3 of its ATR used at the time. It failed to break down with the strong market open and stayed in a narrow range.
I actually broke my plan with this trade as I lowered my stop to a pivot where price made a big bounce earlier at 11am with a large seller sitting there. My thought was that if it breaks that level again then it will likely...
1 trade for (-1R)
I took a BD on QCOM. I was worried about the target being close to the daily range, so I took a tighter stop on the 2 min chart. I am looking through PTS right now, most of the examples have 2 options for where to put your stop. It looks to me like one of the stops would be at the bottom of the main consolidation area, and the other at the bottom of where there has been a shakeout or turnaround bar (if there has been one). Due to the daily range I took the tighter one on this. In hindsight it seems obvious to take the wider stop, but in the moment it looked ok.
I was then looking at the 15 min 3BP on QCOM, but the reason I used a tighter stop in the first place was because of the range. The 15 min 3BP would have needed to have gone even further than the wider stop on the 2 min BD, so I didn't take it.
