Play: Mean Reversion to Auction Fade
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Market Narrative
Price made a mean reversion move due to the open sentiment and hitting H4 200MA pre-PNYC. With PNYC reversal coming up and price faltering on LTF the sentiment is for a possible Auction Fade. Due to a possible D1 Phase 4, the H4 Bull Engulf can be somewhat negated.
How was the Entry?
Entry could have been better. I could have waited for more of a pullback. Even better so would have been an entry based on E TPO closing as an Inside Bar with long selling wick combined with M5/M15 faltering PA to get a better entry. Then monitor for a possible Single Print Fade.
I waited for a Single Print Fade before entering and didn’t even see it and just went in on the Three Outside Down.
How was the SL placement and sizing?
This was okay expecting a move further down and a retracement would have invalidated my trade idea.
How was the profit target?
2.8R at IB edge
How was the Exit?
Time-based as there was no Single Print Fade I cut it off. Scratched at ‑0.1R.
What would a price action-based exit have done for the trade?
Time-based overruled
What would a time-based exit have done for the trade?
-0.1R
What did I do well?
I did well to take the trade
What could I have done better?
I could have gotten a better entry as outlined above.
Observations
Using Single Print Fade as a continuation tool
Missed Opportunity
N.A.
TAGS: Possible D1 Phase 4, Trend is UP 2/3, Huge Imbalance, Below Value, Outside Range, Potential Single Print Fade
Premarket prep on the day
Daily Report Card on the day