How I found the stock to play and the level
The stock price is trending down and 2 and 3 days ago the stock denied the previous support as a resistance area. Now trading at the level, having trouble to break the level.
Expected move is trend continuation on the daily - go lower
The level was tested 4 times what is visible on the 60-min chart
Entry rules
It is possible to enter blindly at the level, but after some years of experience I prefer if the price action shows me a pattern for the entry. In this case, it failed to continue higher after a hammer candle, failing to create a higher high while creating a very small candle compared to the previous ones. The stop loss is 1/10 of the ATR(14) in this case it was ~10 cents
Trade management
As the expectancy is trend continuation, I target 70% of the ATR(14), while having 1/10 of the ATR(14) as a stop loss, it means 7R effectively. The target was 11.05 while there was a huge order visible on Level 2 at the 11.00 price.
Unfortunately, there was a bounce and continuation higher, so the result was a break-even trade. Anyway this was all as planned and having no other trade management plan, I had to accept the result as it was.
Perhaps the bounce was caused by the daily VWAP being against my intentional move but being at 4-5R distance from my entry it had plenty of room for a bounce and continuation lower, but it never happened on that day and it just continued higher.
Despite the result, I am glad that I followed the plan I have for this setup so even though it made no profits, it made no damage to my account and more important to my psychology.