Tuesday, 25 November 2014

Setups and Trade Management

Setup 1

Stock has moved away from open and has cleared previous day's high or low.
Trade direction is always in the same direction as this move.
Taking note of how the stock is behaving relative to the market.
Taking note of any order-flow behavior which seems significant.

Entry on pullback to EMA.
Entry on pullback to prior S/R level.
Entry on pullback to open pivot.

Stop on prior swing high or low.
Stop if open pivot is breached.

Exit partial at around 50c.
Exit partial at $1.
Exit partial at $2.
(Exits are somewhat discretionary and  vary on how much a stock has moved and its typical range : so I don't always hold for the $2 move for a stock which has a smaller range for example).

Example of Setup1 below.

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