Below is chart of VIAB which had earnings results on 13/Nov/2014.
It had moved up and was beyond the open and previous day's high.
It was strong from the open and then tried to reverse after the initial run up.
The general (S&P) market was up at open and moving sideways at the time.
The 4th candle rejected the prior day high and bounced.
Then we had a retest as it came back down again.
The tape showed some absorption at the 70.20 area > i.e. significant selling, but the bid held and then when it started to move up the bid size increased below.
My stop normally would have been below this absorption area for scale out, but since we had support from prev day high and open pivot and 70 level, I set my stop to be below the open.
Exited at 50c and $1 profit. Could (should) have held for the bigger move, but the deep pull from the 71.20 area shook me out in this case.
5 comments:
oh... Happy New Year.
Thk 00nr7....good to hear from you.
Happy new year.
Very clear explanation AM !!! I can better understand your mental process while selecting and trading your stocks. Thanks :)
Clear and nice explanation,I get an opportunity to lean thanks.
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