The idea was based on the whole number 104.00 daily area of resistance that QQQ broke and I was looking for a low risk entry.
The higher lows from the open gave me bias for long with 104 level to break and anticipate a rally.
First try was on 2 min frame pulling back into the rising 20 SMA
Strictly determined stop below 103.96 was in place since the 104 may be a failure break out.
Stop got hit, I took a loss per plan. No surprises here I consider this a good trade.
Here is the 2 min chart
QQQ the 1st short
QQQ the first stop out
Next attempt was 5 min frame same scenario as 2 min , a pull back into rising 5 min SMA.
Both entries were triggered at the break of the high of previous candle risking the same candle range.
This was a battle for 104.00 to take it and hold it for nice rally or simply take a limited planned loss
If 104.00 could have cleared and held we could have seen nice up move.
Now going long in this kind of market this way, without building a position into the pull back and having a strict stop loss feels much safer and more comfortable ( for me ) since I am having hard time going long in general.
Got stopped again which gave me a confidence that market just has no much strength today.
QQQ the second long try on 5 min stopped
Both QQQ trades were per plan, executed by rules which are to conclude:
1) higher lows
2) 104.00 a major level to trade around, I chose long because of the higher lows, price above 200 sma price above 20 sma.
3) few candles pull back on both trades into a rising 20 sma and long on break at above last red candle with stop below so having an exact limited risk and obeying it is of essence.
There was not enough up momentum I did stick to the rules and took legitimate good loss.
FB
Since QQQ could not hold the 104, and all markets were in red, and FB has been in such great rally 3 days in a row after a great gap, my logic told me it is time for a pull back and shorting for a daytrade can fit well in my plan. But sometimes trading defies any logic so again it did not work. I was shorting the pull up above 114.80. The 5 min wick candles at high of day were telling me levels above 115.00 are being sold. However it was not the case this time so I fold the 3rd time today
FB the stop
Normally I would take this long but not after 3 day rally.
FB the long set up entry but not today
This is the second attempt on $FB short and I had to fold it , it is just not working today.
FB the second attempt to short stopped out. Clearly only higher lows all day so no reason to push it.
Gotta take the bad days with the good days. Being stubborn and wanting to be green every day and trading against the rules may in fact give me a green day, but on long term it will be more damaging than productive.
Working on some swing positions will update later
Have a great week all
@DaChopa
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