I took this trade today on the break of 2nd bar high but exited my position at BE. Where would you have exited (based on the candlesticks) if you had taken the trade on the break of 2/15 high. I have uploaded both 5 min and 15 min. chart but removed the stock name and price.
Yellow dotted line: Daily Floor Trader Pivot
Light Blue Dotted Line: R1
Red Dotted Line: R2
Purple Dotted Line: Previous Day High
My Trade:
I entered on the break of 2nd bar high with a target of R2. 4th bar was an inside bar in the tail of the previous bar and closed strong. This is bullish. 6th bar was a spinning top candle but on slightly lower vol. than previous candle. but when the 7th bar took out the low of 5th bar, I moved my SL a little below 20 EMA on 5 min. and was hit. Price formed a green shooting like candle before it took out the lows of the 5/15. Price reached the target easily after that. I should have moved 1/2 the shares to BE and left the remaining at original SL but I did not.
Would you have exited where I did based on the 5 min. chart?
2 comments:
No, why: that bar came down to your b/o point/pivot and reversed which would be typical. Too tight a stop. Many traders would say stop loss at break of 2/15' or as you said 1/2 at be.
Thanks bl. Better to allow retest of base before moving SL to BE.
Post a Comment