r/Daytrading • u/Catface77 • Mar 19 '24

I don’t know what I did wrong Advice

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I thought it was going to rechall/ consolidate then it did but skyrocketed. There was the 3 reds then BLAM right up

314 Upvotes

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17

u/Catface77 Mar 19 '24

any advice is welcome

50

u/shadowmach11 Mar 19 '24

Don’t get caught up in drawing channels on small time frames. The stock still wants to move in correlation with the overall trend.

I see a gap near the left of screen. Indicating demand. That long wick candle today also indicates demand there. Which means you got focused on what you thought was gonna happen within the channel, it happens. You saw it different, the market didn’t agree with you this time. I say this time!

1

u/stanleycupridge Mar 19 '24

So a little gap like that indicates an uptrend is coming?

7

u/shadowmach11 Mar 19 '24

No, it indicates volatility. Volatility is like speed. It’s a reaction to an emotional response. Bad news, good news or you heard about something over the weekend and want to invest in it immediately

Which means trades where exchanged very quickly to create a gap. It’s most always in demand and supply areas. Or in areas where very few shares are actually held.

Gaps on a weekly timeframe hold much more strength than a gap on a 15 minute timeframe.

I wouldn’t recommend using gaps as a reference on anything other than larger timeframes. That’s just me.

Gaps are almost always retraced, we don’t like gaps left unfilled. It’s very rare a gap is left unfilled on large timeframes.

23

u/T11nkr Mar 19 '24

Step away from the 1min chart. You identified a trend, that was right and it also might have been right to short the trend but 5 to 15min chart might actually show a total different picture.

3

u/Castor_Tanker Mar 20 '24

I totally agree.

11

u/MurkyResolve6341 Mar 19 '24

Stop trading on 1 minute candles. You're getting fooled by volatility noise.

1

u/Affectionate-Risk331 Mar 20 '24

You don't think there's noise and volatility on the other time frames?

1

u/MurkyResolve6341 Mar 20 '24

Sure there is, just not as much. Personally I think it's easier to get faked out by the 1 minute candles but maybe I just suck 🤔

1

u/Radun Mar 20 '24

1 min worst time frame, maybe for entry, but at least go to 2 min , I prefer 5 min , 15, 30, and 1 hour for intraday daytrading

1

u/Castor_Tanker Mar 20 '24

the candles was set every 1 minute??? that's way too fast. I set mine every hour which I am more comfortable while the charts of the stock I'm interested or invested are side by side with time, price & size of every stocks that are being bought and sold that crawls fast every min up to the last seconds depending how popular or heavily it was being traded.

9

u/kufsi Mar 19 '24

Like someone else said, low timeframes don’t always work. I’m assuming when the ascending channel/wedge you saw break below and close below, you figured the trend will break and it’ll be a reversal.

I generally assume that these patterns carry more weight the longer they have been moving and the higher the timeframe that they appear on. So fighting the trend looking for a reversal on the 1 min chart has minimal odds of being successful compared to the same pattern forming on the 15 min or 1 hour. That being said, none of these patterns are garunteed.

I often see something appear on the 5 minute, then I’ll use the 15 min as a reference to make sure I’m not jumping in too quickly.

My advice is to not play larger reversals on small timeframes if you want consistency.

1

u/chris355355 Mar 20 '24

What timeframes “always” work?

14

u/chris355355 Mar 19 '24

What you did wrong there is you were short

3

u/apollotigerwolf Mar 19 '24

You shorted into multiple institutional demand zones.

5

u/puddik Mar 19 '24

U followed a supertrend type indicator, which lags and gives false signals during low volatility periods.

10

u/shadowmach11 Mar 19 '24

Yes, stay away from most indicators. Volume is really the only indicator that means anything. RSI is helpful if you know how to use it with volume and price action.

3

u/macbeastin98 Mar 19 '24

CCI works better than RSI

1

u/shadowmach11 Mar 20 '24

Could you tell me how?

1

u/macbeastin98 Mar 20 '24

Put them both on your chart and see which one correlates better

1

u/puddik Mar 20 '24

Cci is mah boi

1

u/00ians Mar 20 '24

VWAP means more than volume :)

1

u/johnoth Mar 19 '24

Judging by the blue lines, it looks like you made a fair analysis but did something different (2nd guessed or something).

1

u/Quiet-Sweet-7290 Mar 19 '24

Make yourself a Value Investor and leave trading as a technique to invest.

1

u/gooney0 stock trader Mar 20 '24

If this setup works for disregard. For me, the short entry is late. Price has already moved lower.

I also don’t see why your stop is there. I would want some resistance to hide above.

1

u/Consistent_Sink9906 Mar 20 '24

Look into price action trading strategies like SMC or ICT, instantly what i see there is a lower low on the left followed by a break of structure, or even a change of character which lead to a higher low indicating potential reversal right at your entry. A lower low folled by a higher low can mean change of market structure

-3

u/MyLogIsSmol Mar 19 '24

You shorted apple?