Trend continuation after pullback - Psychology & Price action
Hello !
Key points :
What's the plan ?
From a "daytrader" perspective (that I'm not, but I have some basic knowledge), I saw that morning panic which led to a reverse and a spike to 8.10 (5 min chart). A pullback was obvious, so I placed my buy limit at 7.95 and got filled. Now I'll let the trade unfold and will add the other half on my position once the trade advances in the desired direction. The initial target is the first encountered resistance.
***Disclaimer : This is not an advice to buy the stock. You should never ever blindly follow a trader's idea without knowing exactly what he talks about.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
Key points :
- Support on previous gaps (highlighted on the chart)
- 50% Fibonacci retracement, after starting a new trend, stocks tend to pullback halfway after resuming
- Fading volume signals the end of the current trend
- Indecision candlestick ("Doji") signals that indecision rises
What's the plan ?
From a "daytrader" perspective (that I'm not, but I have some basic knowledge), I saw that morning panic which led to a reverse and a spike to 8.10 (5 min chart). A pullback was obvious, so I placed my buy limit at 7.95 and got filled. Now I'll let the trade unfold and will add the other half on my position once the trade advances in the desired direction. The initial target is the first encountered resistance.
***Disclaimer : This is not an advice to buy the stock. You should never ever blindly follow a trader's idea without knowing exactly what he talks about.***
Thanks for reading and if you have suggestions or wanna discuss the idea, just leave a comment, I'll be happy to answer.
Trade active:
Got stopped on the gap down today and got back in on the price rejection today.