APHA Swing Trade Recap
TraderNoxtreme with a quick, successful, swing trade recap.
We dumped hard on APHA (which was already pretty deep in a downtrend) during the first 30 minutes of the trading day friday.
This brought our 1 HR RSI to 20 and our 4 hr RSI to 31. I wanted to wait for 30 RSI on the 4 hour but after seeing 11 5 min candles with consistent bull volume and getting back within the lower VWap I decided that this was likely the volume climax of our downtrend and we should get a more significant bounce considering how much ground APHA has lost on the longer term time frames. I also thought, with how quickly we bounced back up into the VWap, it is unlikely we would drop straight down to form a lower low compared to 6.25 being that the 1hr came of a pretty extreme oversold levels and the 4 hr was already almost oversold.
I entered right before another small dip (see the wick there) but was confident that I had made a good choice as RSI was back oversold on that wick.
APHA was in a pretty strong uptrend the rest of the day after that. There was also good strength into the end of the day so I decided to hold through the weekend expecting the strength to continue and it did. Looming CGC earnings did make this a higher risk hold then it would have been otherwise but it worked out.
My exit was late. I literally had a sell at 7.22 which I let be for over an hour when the 1hr RSI was overbought but bulls just ran out of gas and could not fill it. Once the stock became weak at the end of the day I had to chase the price down and eventually market sell adding 5 cents of slippage to my exit which ended up being 7.05 unfortunately.
What prompted my exit was the fact that we rejected for the 50 MA on the daily near the end of the day after two strong bull days. If we turn around and break the 50sma on the daily tomorrow I will consider re-entering expecting a test of the 200sma on the 4 hour and then a potential test of our 7.54, 7.68 and 7.98 resistance levels before we have some good room to run and even a gap to fill.
I expect we will make a higher low around 6.91 before we get that continuation IF we get continuation.
I have started a discord chat for skilled and new traders alike. If you want to share your knowledge or learn please join.
discord.gg/QWmu8B
We dumped hard on APHA (which was already pretty deep in a downtrend) during the first 30 minutes of the trading day friday.
This brought our 1 HR RSI to 20 and our 4 hr RSI to 31. I wanted to wait for 30 RSI on the 4 hour but after seeing 11 5 min candles with consistent bull volume and getting back within the lower VWap I decided that this was likely the volume climax of our downtrend and we should get a more significant bounce considering how much ground APHA has lost on the longer term time frames. I also thought, with how quickly we bounced back up into the VWap, it is unlikely we would drop straight down to form a lower low compared to 6.25 being that the 1hr came of a pretty extreme oversold levels and the 4 hr was already almost oversold.
I entered right before another small dip (see the wick there) but was confident that I had made a good choice as RSI was back oversold on that wick.
APHA was in a pretty strong uptrend the rest of the day after that. There was also good strength into the end of the day so I decided to hold through the weekend expecting the strength to continue and it did. Looming CGC earnings did make this a higher risk hold then it would have been otherwise but it worked out.
My exit was late. I literally had a sell at 7.22 which I let be for over an hour when the 1hr RSI was overbought but bulls just ran out of gas and could not fill it. Once the stock became weak at the end of the day I had to chase the price down and eventually market sell adding 5 cents of slippage to my exit which ended up being 7.05 unfortunately.
What prompted my exit was the fact that we rejected for the 50 MA on the daily near the end of the day after two strong bull days. If we turn around and break the 50sma on the daily tomorrow I will consider re-entering expecting a test of the 200sma on the 4 hour and then a potential test of our 7.54, 7.68 and 7.98 resistance levels before we have some good room to run and even a gap to fill.
I expect we will make a higher low around 6.91 before we get that continuation IF we get continuation.
I have started a discord chat for skilled and new traders alike. If you want to share your knowledge or learn please join.
discord.gg/QWmu8B
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