The first chart is the daily timeframe for VMW, a watch list stock. Last night I scoped out the pivot points for many watch list stocks and set alerts. Basically, I was looking for stocks that had not done much in the last couple of days because many of my WL stocks were extended. VMW is easy to map out because there is so little to work with.The green lines are pivot points.
My alert went off in pre-market and VMW tagged both PPs in the OR. Price retraced almost 100% from the ORL to the ORH. On the 5 minute timeframe, we see that each retracement stick had a long upper shadow. The fourth bar was inside, trading just below the downsloping 5 period ema, so I decided to short a break of the inside bar as it was conveniently located on the cusp of S2. The preliminary target was the lower PP. After taking a partial. I left my stop at BE as I knew we would consolidate and retrace some at the ORL. Price eventually took out the ORL on a volume spike and carved out a tweezer reversal. Unfortunately or fortunately, as the outcome was in my favor, I missed it as I was busy looking at GES. If I had seen it, I would have closed the position, however, when I did see it, it was too late, so I tightened the stop to $65.50. As price approached the round $ number $64.00, I closed the balance of my position.
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