Strategy Description: This trade applies to any stock that is respecting vwap, which will usually be when there is institutional interest and fresh news. In this particular instance it applies to a stock that was gapping up on earnings; however after this I will post a similar setup on LNKD which gapped down.
Based on the daily and the failure to retake the premarket high ($110) was looking for short opportunities. It becomes clear that the vwap zone is a pretty significant level around midday where it held early morning and then is tightly consolidating around it.
If not already short then below vwap (and holds) is the key to initiating a position and then taking profit into any downmoves and adding back around vwap.
The mistake I made while trading this is that I was looking for a solid rollover and trend lower... Accordingly I trailed stop-loss. and was stopped out at the X.
Included LNKD in this post. The intraday chart is very similar, you notice that dips to vwap are originally being bought, but the bigger picture gives different reasons to try and get short.
Daily (MDVN):
Intraday (MDVN):
LNKD:
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