More Losses But Good Losses

SPY gapped down from the previous day but remained within the previous day's price action. I waited for price action to confirm the reaction zone around the 585.50 level.

Price generated these reaction zones the previous day and confirmed them today. I entered for the breakdown (green circle) as soon as we broke. We did not get any follow-through and ended up closing the trade for a loss.

This loss sucks but was a B setup at best since we did have a 1-hour reaction zone at 585 so there was a chance for resistance or a bounce.

585 seemed like a solid demand zone, and we reached the intraday reaction zone around 586.50. This reaction zone was formed the previous day and confirmed today, so I waited for the break. I missed the initial break but decided to get in on the pullback (red circle). Once again, there was no follow-through, and I ended up closing out for a loss.

The Trades:

Green: RZ Breakdown (intra/PD) [Loss -5%]

Red: RZ Breakout (intra/PD) [Loss -5%]

I executed my trades well and stuck to my mitigation/exit system. Yes, this resulted in losses, but they were good losses. Coming off of an undisciplined trading session yesterday, the hole I dug this week is getting bigger.

I must reset and hone in on A+ setups ONLY. These trades must have clarity as their main components. That means no additional reaction zones near the break of interest or mid-range reaction zones that often signify choppy price action.

Comments

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