I just took one trade today in the AM which was EYES short. I was actually up but only got half filled. It tanked almost a dollar from my short but since I only had half the size I wanted I decided to just keep it on instead of covering. There was a lower high which I wanted to add to because I thought that this would be the backside of the move because 15.40s were peaking now which is where the the support was for the entire day Friday. However, I noticed a pattern that I have seen before which gave me pause. It held the prior low as support and started to come off that. From there it just jumped and it went past my entry so I covered for a small loss. It would have been a decent gain even with the half size if I had covered, but no matter. To be honest I was pissed but then I realized that I was seeing the patterns in real time which was a good thing. In fact, it was a pattern that told me to go long which I wish I had but I was stuck in the short frame of mind.
You can see from the above image where I shorted (the white arrow) and what the pattern is, is when a stock washes out but then reclaims the support in a somewhat quick fashion. Originally, I thought when it popped again it would just be a lower high but it dropped for a bit and held, which showed me that there was something more going on. In addition, it is crazy how it washes to trigger the ssr and then immediately squeezes all the shorts.
You can even see the inverse of this pattern for the short in the same picture above during premarket hours. It spiked up but then sat right back down and then proceeded to flush a bit.
Things to work on:
1. Switching mindset quicker from short to long and vice versa
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