My trade of the week 9/2024 $UPST Parabolic reversal
2-attempts parabolic reversal with a mistake
How I find the stock to trade
3 and more 5-min candles up
into a resistance on the higher time frames (daily)
close or around daily ATR(14) move
In the direction of the daily trend or in a range
Entry rules
Using overlap rules, I want to see first candle of the 5-min cycle on 1-min chart green and enter on the break of that candle. This time it triggered my entry but got stopped on the next minute but as it was going to end as reverse hammer, I re-entered.
Trade management (and the mistake)
Usually I target
5R
VWAP (blue line)
50% retracement of the previous move (yellow line)
whichever comes first.
Being down-1R on the first attempt, and having a nice runner 5R before VWAP, the greed in me won, and I started to question my target. I felt it can go, but was not prepared for that. After it touched the 5R, I decided to move stop to 4R and accept the faith. It was 4R at the end. But the move was over 15R at the end. So I have left 1R on the table for being not prepared for the bigger move. It is usually best to follow the plan as the plan is prepared when things are calm and no emotions are involved.