PCYR - Nov 24 Opening Sustainable Momentum

Nov 19, 2024

• Trade Idea
• Weak businesses that benefited from the Trump rally unravels.
  
• Use the lack of elevated bull volume as an additional indicator of weakness
  
• We are making a bet that at this stage of the Trump rally, it is harder to sustain buying forces for weak companies and so we will see a price reversion to the mean.
  
• We were looking at basket of other potentials - PYCR, ASAN, PENN and FWRG.
  
• Technical entry for PYCR, is based on the momentum of the H2 opening candle closing below the key level.
  
• Our Stop Limit order did not activate for PYCR on Friday, so where I saw continual bearish momentum just 0.25 Fibs away, I entered.
  
• RUT and SPX also showed bearish confluence on Friday but not today
  

Opening Sustainable Momentum 🧑🏻‍🚀

Strategy
Signals identify market opening H2 candles through momentum and behaviour change that potentially could indicate a shift in the current price overall structure (Price gaps and ADR %).

Risk
We use the signal candle's highs and lows for entry and stop loss. If price hits the stop loss, it is clear that the shift we expected did not come to fruitation.

Current SL is at 0.25Fib

Focus
Focus is never on the signal candle alone, but it's role in the larger structure and the direction it is inclined towards with a minimum Risk & Reward of 2R.

Stock must be in a pull back or consolidation area waiting for a broad market momentum to ignite it forward.

Character
Trend, Positive Skew

Nov 22, 2024

Trade closed: stop reached

21 Nov Exit
Similar to ASAN I need to stop trying to be right and take bets, because this mentality of trying to be sure is resulting in me getting into trades late.