12/22/2023 Review
Disclaimer: These are not trades I took, but these are a review of trades that may have yielded a good outcome throughout the day. This is to train my eye to see the patterns so I am able to recognize them as they are playing out.
Day started with gap up and strong push to the upside, doesn’t give any chances to get in
Maybe first chance at the 13 EMA on the 3m since trend was strong, but 13 EMA on 3m is usually pretty risky which means a tight stop loss is needed which led to a small push to the upside, but wasn’t able to break through prior high.
Since there was a big long trend, I would like to stay long. Better entry point came at the 48 EMA on 3m (circle), 13 EMA on 10m, and IB low. Since there’s confluence here it is worth a long. However we see that it got to VWAP and then got sold off heavily with a large red candle. This is a sign of weakness, and should get out of trade if long.
As the day progresses we see that the 48 EMA on 3m is broken which led me to believe a break was coming, but we actually recovered. It was possible IB low was able to help with the support here. VWAP was also about 8pts away which may have led to the recovery. I entered puts which I had to cut for a loss as it recovered.
Best entry was the Vomy forming at the orange rectangle on the 3m. We see no close above 13 EMA 3m, and once it broke the 48 EMA 3m, we could see a liquidation break coming to at least the 48 EMA 10m, which it did.
At the 48 EMA 10m, it attempted to recover but could not break above IB low, leading to another liquidation break to 4740 which is the LIS in Volland.
From the Volland LIS, there was a fast recovery back to the Open where it chopped for the rest of the day.
Trade Opportunities
C trade - Bounce from 48 EMA 3m
A trade - Vomy setup at orange rectangle
B trade - Long from LIS