Thank you Dae for sharing this with us! It is of enormous value to the rookie schmucks like me.
What follows is a direct copy of Dae’s explanations on his trades from the 4th of January 2023:
recaps
指車
Dae Recap for 4/1/2022-VVOS
Indicators
Dashed purple line = VWAP / Pink line = 8ema / White line = 12ema / Blue line=26ema/Yellow line = 50ema/ Teal line = 89ema / Orange line = 200ema and Volume
Support and Resistance levels
Horizontal solid purple lines are either daily or hourly levels Yellow horizontal line are intraday levels, which i find using big stick 5min candles
Blue circles = Entry / Yellow circles = stops / Orange arrows = support levels for entries/White circles and arrows = 5min candles or Resistance areas to sell
Entry-Entry would be the hammer candle
Reason for entry-12ema held, hammer candle formed, the wick below support then the suck back up is nice, candle wasn’t great but it had consolidated nicely on volume
Stop – Below the wick of the hammer candle we entered on, as it is the lowest wick of that consolidation area Profit targets – Profit targets can be whatever you want, i personally like big 5min candles and daily resistance levels, you could also sell some into the PMHOD as well (edited)
Dae Entry2-If you missed entry 1 (which I did) entry 2 was a pretty nice entry as well, after breaking pre- market high, it came back and tested that level
Reason for entry 2 – A nice hammer as part of a flag set up (which i don’t usually like or trade, but volume was great, news was there) and it was now above VWAP/8 and 12emas
Stop2-Always the wick of the lowest candle in the consolidation Profit targets2-Same profit targets as the previous entry, keep in mind these lines are drawn before i take a trade and you can see how well $2.34 and $2.88 were respected as it climbed. The consolidation near the top is not a good sign and you would of been lucky enough to have multiple times to sell (edited)
Dae Entry3 – The chart is breaking down at this point, so we are now trading backside, but we had a nice doji into a hammer (when trading backside wait for extra confirmation, usually a 2 candle 5minute set up is really safe)
Reason for entry3 – The 26ema was respected here, the hammer also closed above the 2.34 area that had previously been respected as resistance Stop3-Stop as always is the bottom of the lowest wick of the lowest candle
Profit targets3 – I was patient here and actually wanted more, but if you look right, i circled $2.50, sold some there and the on the 5min candle above that, after that we start to come down, so it’s up to you whether you want to hold to see if it can keep moving up and sell at entry (which i did) or sell more as it drops (edited)
4:42 PM Dae Entry4-The next entry is the same as the last, stay patient, wait for the chart to set up, still backside trading, but still had huge volume, had a nice green candle, not really a hammer, but it was right off the $2 psych level and the 2.01 daily level i had, the hammer confirms the support Reason for entry4-2$ psych level, along with the 50ema and daily level i had, i felt quite good about this entry despite it being back side, VWAP worried me, but after you enter, worst than can happen is you get stopped out, set up was there
Stop4-Stop is always the bottom wick of the lowest candle of the consolidation/bounce Profit targets4- Big 5min candle and the previous support (now resistance) at 2.34, i sold 80% of my position and i then sold the rest after 2nd red candle that couldn’t even reach 2.34
Dae Entry5-The backside trading was actually decent on VVOS, again we had to wait for 2 candles to form, firstly an inverted hammer then we have the doji, i added the candle that opened after the doji Reason for entry5 – The 89ema had held and the same pattern for the 2 previous entries was clear, 2 bullish candles
Stop5-Stop is always the bottom wick of the lowest candle of the consolidation/bounce
Profit targets5 – First target was VWAP and i also sold some on the close of the 5min candle, resistance+5min stick candles are my favourite ways to sell
Dae Not a great day stock wise, so i stuck with the highest volume/percentage gainer we had