Short Day Trade

Took a Short position at the daily EMA9

Entry: 18440
SL: 18690
TP 17950

Went short because today China reacted with a tariff increase on Trump action and Tesla does not take orders in China anymore. Was thinking about shorting Tesla but I decided to stick to the index.
Entry Level was choosen because I expected the price to touch the daily ema9 again (when I woke up it was way below it). The TP is just the intraday low which I expect to be hit again. The SL is a little high, thought about taking the premarket high but considered that this might be the SL for many shorts and it might hit at market open to erase some shorts from the market.

So the Risk Reward Ratio is bad for this trade. If I weren't so bearish for the market I probably would not have taken the trade

In my opinion the upstick of the market was just market manupulation by Trump (who should be impeached over this) and the uncertainty will bring the market much lower

I trade on the 4h chart, the 1h is just to see the progress.

I will close the trade before the market closes, no matter where it is.

Trade active

On the 5 min there is a new trendline, starting at 18654 early in the morning, the top of the first run up of the day, touching 18568, 18531 and latest 18509. If price breaks this trandline I am out, so I update/lower the SL to 18520 for now.

Note

Thinking about closing the trade early although the price action goes into my favour. That 5 minutes candle with the huge upper wick of 160 made me suspicious. It was an impulsive move in the first seconds of the candle, a move of a range of complete days where the volatility isn't that crazy as this week. I will decide in the next 20 min, for now I am setting my sl to break even, 18440

Note

still in and decided not to move the sl to 18440 but 18490. trendline is at 18460 right now. Still might close the trade soon

Note

would have been stopped out right now if I weren't sitting in front of the screen. When I am sitting in front of the screen I watch where the candle closes before I close my position. Candle went up to 18497 and is closing now at 18436. Still in

Trade closed: stop reached

pulled the trigger at 18519, that 5 min candle started at 18430 and went even to 18549. crazy times

Note

So a 0.43% loosing trade, let's RECAP:

Should I have considered the trade at all? ---> NO
I violated my rule number one: Only go short when my indicator, which sets the background color, draws the color red. I opened the trade 7 minutes before the 4h candle closed, at that time it was red, 7 minutes later green. So I acted upon expectation that it will stay red.

Was the initial Setup correct --> NO
My TP was not correct. When taking a look at the 30 minutes timeframe you can see that each time a candle closed below the ema200 the price shot up and the candle closed above it again. So the ema200 should have been chosen as a TP area. It would have been a winning trade of 1.56%.

While in the trade, could I have handled it better? ---> YES
I noticed my 30min chart mistake while I was in. At that time it was still a winning trade, about 1%.

While in the trade, could I handled it in a better way? --> YES
One thing upfront, I think that

Note

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High institutional holding, potential short squeeze, great products and pipeline.

This is not a financial advice!

ape_mo

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ape_mo