Wanted to take a quick minute to breakdown the eBay trade from today. This one was setup really well after a big run up early in the day. Let's jump into the before and after breakdowns.
As you can see above is the 5 minute chart. So what I was looking at on this trade was the Candlestick pattern. We had a big run up on EBAY and then We saw a Doji candlestick which started to show buying volume slowing down, followed by a red hanging man candlestick which is bearish at the top of an uptrend, then waited on the next candlestick for confirmation of the newly started downtrend. We got the full bodied red candlestick and that was the trigger to enter the trade.
Above is the current EBAY 5 minute chart. As you can see the entry was pretty much timed perfectly and I entered right at the top of the chart today. Now the exit can become slightly trickier as hindsight is 20/20 and we truly don't know how far this stock would fall. Also factor in current market conditions and how violently everything tends to swing these days locking in any profits you get is recommended. My personal way of day trading and identifying points to lock in profits is usually in a put situation locking in on the first Green candlestick. So in this case I sold at $37.05. But that candle was actually a fake out and the stock continued to fall further. In this case only selling part of my position and allowing myself to lock in larger gains would have been the better strategy.
Hope this analysis and breakdown helps you on your trades and identifying entries and exits in the future. Thanks for listening!