Strategy Description: With a big gap there's obviously three things it can do. Trend down, bounce and squeeze, or range bound. It's about using price action along with news, float short etc to determine what's a likely scenario.
Yesterdays close was around $75, so a pretty significant gap down. Earnings interpretation isn't a skill of mine so for now not too worried about that. But with an ATR of around $2.0 it seemed reasonable to begin to fade it as a starter position after it had moved $2. So as it put in a bottom I put in some bids with a stop-loss below the lows.
I was positioned correctly for the initial bounce, but didn't take any sales despite that it was testing vwap and resistance from the earlier bounce; and hadn't quite changed trend yet, aka it needed more time!
Was eventually stopped at the low before a clean trend change occurred and it reclaimed vwap.
Things I would change about this trade. I would start in smaller, with a wider stop-loss and definitely take sales in resistance, then I would look to add back on trend change; again taking sales into resistance (vwap ish); then on a reclaim of vwap I would try and add back, this time even larger for a move to the high.
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