This post was contributed by a guest author, and does not necessarily reflect the views of Richard or MovetheMarkets.com
I am responsible for all of my trading results. Period. I lost a quick 1R in Amazon.com, Inc. (NASDAQ: AMZN) this morning.
Here’s the chart (orange line is entry, red line is stop):
I shouldn’t have traded the 5 min timeframe on this one. There were a lot of upper tails, and a few wider range bars. It was choppy, and I ignored the choppiness.
Note the setup on the 15 min:
Volume was still contracting on the higher timeframe, and the contraction is much more orderly there, but even now on the 15′ the setup still doesn’t look good.
I went long on a volume uptick and break of a narrow range candle on the 5 minute. I placed my stop at the 50% fib retrace, and price reversed and stopped me out. I was trying to pick the bottom, which is not the setup I was supposed to focus on today.
One more thing I missed: I have been putting a trend indicator on my charts lately just to try it out. It’s a paintbar band that consists of a 5 period Hull moving average and a 5 period EMA crossover. If the Hull is above the EMA, then it’s green and if it’s below the EMA it’s red. You can see that I was going long in a downtrend on this trade today. I’ll keep an eye on that more in the future.
I earned the results I got today.
Trade Summary:
AMZN Long
Entry: $72.74, Stop: $72.38, Target: $74.45
Exit: $72.38, P/L: -1.00R
Trade Grade:
I’ve enjoyed your posts. I’m not familiar with the Hull moving average. Could you explain the thinking behind your paintbar?
Thanks,
Alan
Alan: Thanks. Yes, I’ll write a post about it.