DRC 5/6
Came into today no expectations. Just wanting to find a good setup. Decided to start looking at gappers again. With SPY not moving yet, I didnt give up looking for longs but did not have many good setups at all going into today.
SPY
Still not doing anything special. Broke that rising wedge into consoldiation. If I was to anticipate any momentum it would have been lower. But was still looking for longs as well.
BA
BA had failure all over the map, first failed triangle break lower mid april, then failed higher and came right back to the lower end of the range. PA and levels werent super clean and obvious so I waited to see what would be in play, where wed fail and what not.
At the start BA just lost it. Held for about 15 minutes then lost all 3 levels I was watching for. Had to wait on some PB action for a longer term trade but I couldnt ignore the scalp opportunity on a new LOD push. Went for it and had a nice move, but couldnt really stick anything lower so ended with a small win.
It pulled up past all 3 levels again, got above vwap and held it. SPY at this time had done the same and failed under for a moment. I noticed that BA failed to make a HH and had a nice downtrendline from HOD in play as R. I also noticed the rejection wicks on each attempt higher and lack of volume so I decided to get an early entry starter and add if its starts working.
It started working, lost vwap added more. Added more on a new range low and waited for a pb to add more. SPY started ripping higher and BA had no reaction so I knew I had something. Made a nice new range under the previous one, added more on a failed pop from it. Retraced a bit higher to other HTF level / previous range high from earlier and failed. Added more once it dropped. Added again on HTF break lower, and again on new range break lower.
Was not majorly huge but I managed risk very well adding to my winner as it kept proving itself. Now just waited for either more adds or PT at new LOD.
The whole move lower was pretty uneventful. Very slow and steady, saw sellers saw buyers so wasnt too impressed but we kept rejecting higher.
Eventually made our way to LOD. No volume cues, and a large buyer preventing a bigger move lower. I exited half.
Later the downtrend lines came into play and volume was seriously drying up, no longer seeing selling and buyers were here defending the .50. I spotted a hidden seller at 123 and decided that would be my out. It connected with the top TL as well so it was a great spot for me to look to exit on all the warning signs I was seeing.
Normally I would look to re enter right away if it proved itself and saw rejection. But considering the relative strength and lack of sellers and lack of volume cues, I decided against it. Maybe a re entry much higher back at HTF level or vwap. I did not expect it to drop again and make new LOD. When it did do that it was 1:1 with SPY doing the same. If I dont see the trade, im not going to take it. Im happy with how I traded this.
SPY
Still not doing anything special. Broke that rising wedge into consoldiation. If I was to anticipate any momentum it would have been lower. But was still looking for longs as well.
BA
BA had failure all over the map, first failed triangle break lower mid april, then failed higher and came right back to the lower end of the range. PA and levels werent super clean and obvious so I waited to see what would be in play, where wed fail and what not.
At the start BA just lost it. Held for about 15 minutes then lost all 3 levels I was watching for. Had to wait on some PB action for a longer term trade but I couldnt ignore the scalp opportunity on a new LOD push. Went for it and had a nice move, but couldnt really stick anything lower so ended with a small win.
It pulled up past all 3 levels again, got above vwap and held it. SPY at this time had done the same and failed under for a moment. I noticed that BA failed to make a HH and had a nice downtrendline from HOD in play as R. I also noticed the rejection wicks on each attempt higher and lack of volume so I decided to get an early entry starter and add if its starts working.
It started working, lost vwap added more. Added more on a new range low and waited for a pb to add more. SPY started ripping higher and BA had no reaction so I knew I had something. Made a nice new range under the previous one, added more on a failed pop from it. Retraced a bit higher to other HTF level / previous range high from earlier and failed. Added more once it dropped. Added again on HTF break lower, and again on new range break lower.
Was not majorly huge but I managed risk very well adding to my winner as it kept proving itself. Now just waited for either more adds or PT at new LOD.
The whole move lower was pretty uneventful. Very slow and steady, saw sellers saw buyers so wasnt too impressed but we kept rejecting higher.
Eventually made our way to LOD. No volume cues, and a large buyer preventing a bigger move lower. I exited half.
Later the downtrend lines came into play and volume was seriously drying up, no longer seeing selling and buyers were here defending the .50. I spotted a hidden seller at 123 and decided that would be my out. It connected with the top TL as well so it was a great spot for me to look to exit on all the warning signs I was seeing.
Normally I would look to re enter right away if it proved itself and saw rejection. But considering the relative strength and lack of sellers and lack of volume cues, I decided against it. Maybe a re entry much higher back at HTF level or vwap. I did not expect it to drop again and make new LOD. When it did do that it was 1:1 with SPY doing the same. If I dont see the trade, im not going to take it. Im happy with how I traded this.
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