I thought this would be a great time to do a quick trade review on a recent idea I posted on my public twitter! The thread on this particular trade can be found here.
As many of you already know I'm a technical trader. I look for technical patterns and characteristics to find low risk, high reward ideas. My vision of a great trade is one that continues to follow the technical characteristics that I've uncovered and works in a swift manner!
"The best trades are the ones that work right away!"
This $OIH reversal swing trade idea could be considered one that worked right away. Lets review what made this trade a low risk, high reward setup!
There were 3 very Important factors that were considered in this trade.
A steep, swift 25% pullback and down 8 days consecutively!
Tagged some support levels and the 200 day MA
The energy sector has been a leading market in 2022
The ideal entry on this potential reversal would have been right on the 200 day MA, Around $234 - $235.
The Art of Trading Private community was alerted an Entry on 2022-06-17 @$237.40
our stop loss was set at $230. With an upside target of $270 - $280
The stop loss was set slightly below the Low of Day (LOD) and below the 200 day MA
The Target $270 - $280 was based on a gap down area made 5 days prior around $280 This also happens to be a 30% - 40% retrace of the move down.
On Tuesday morning 2022-06-21 $OIH gapped up, held the gap up and then made a momentum move higher with the market. Knowing how volatile and how quickly gains can come and go in this market I alerted Art of Trading Private members of a partial exit at $249.20. Locking in a partial gain of +6%!!!
We track all of our official alerts on a spreadsheet. YTD Art of Trading short term trading alerts have produced +20% in these less than ideal conditions!
When we see the entirety of this trade through I'll be sure to update you on how it went!
Cheers and Happy Trading,
Art of Trading
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