Pattern: Continuation wedge formation
Edge: There was some small insider buying in December, but nothing really material and it was at a much lower price. This is more of a textbook trade on a wedge pattern with a favorable risk to reward ratio.
Risk Management:
Entry price at $1.45 on intraday wedge breakout, but it didn't close above the wedge resistance. This was an aggressive entry. Conservative entry would be after an actual breakout based on the closing price, and then buying on a pullback. I bought a little today and leaving some cash for a potential second purchase.
Stop loss: $1.23 - breakdown below the support line of the wedge
Profit target 1: $2.27
Profit target 2: Open - let it run and if we get to PT 1, we would have already moved the stop loss up above entry price and will just continue to manually trail the stock up based on a moving average support.
Edge: There was some small insider buying in December, but nothing really material and it was at a much lower price. This is more of a textbook trade on a wedge pattern with a favorable risk to reward ratio.
Risk Management:
Entry price at $1.45 on intraday wedge breakout, but it didn't close above the wedge resistance. This was an aggressive entry. Conservative entry would be after an actual breakout based on the closing price, and then buying on a pullback. I bought a little today and leaving some cash for a potential second purchase.
Stop loss: $1.23 - breakdown below the support line of the wedge
Profit target 1: $2.27
Profit target 2: Open - let it run and if we get to PT 1, we would have already moved the stop loss up above entry price and will just continue to manually trail the stock up based on a moving average support.
交易结束：到达止损:
The stop for this was reached two days after the trade was put on. (May 13)