Trade Journal: Long BIG - 1/15/2020
Aktualisiert
I went long BIG based on the Bullish Candlestick Patterns and the chart pattern on the 30m timeframe. In the past 2 days, BIG has printed 2 Inside Day Candlesticks in a row near highs. These candlestick patterns are a predictor of future volatility and usually prices goes in the direction of the current trend. Zooming into the 30m timeframe, a flag pattern is forming right above the previous breakout trendline. Furthermore, price is clearly rejecting this trendline with high volume hammer candlesticks. I went long BIG at 29.85 with a stop loss at 29.15 below the previous low. My target on the trade is 34.00.
In hindsight, I probably hit the trigger too early on this trade. Price is currently right below a strong level of resistance at 30.50 and looked like it rejected this area on Monday. When I start new trades, I usually want to see no nearby levels of resistance where the price could have trouble (Clear skys). I should have waited for this resistance to be cleared or skipped this trade. Depending on the price action tomorrow, I may choose to close this position early.
In hindsight, I probably hit the trigger too early on this trade. Price is currently right below a strong level of resistance at 30.50 and looked like it rejected this area on Monday. When I start new trades, I usually want to see no nearby levels of resistance where the price could have trouble (Clear skys). I should have waited for this resistance to be cleared or skipped this trade. Depending on the price action tomorrow, I may choose to close this position early.
Anmerkung
30m Timeframe Trade geschlossen: Stop wurde erreicht
Stopped out BIG 29.15. Rejected the key resistance stated earlier and failed.
Haftungsausschluss
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