Trade Recap featuring CLDX

I want to try and feature a trade recap of 1 or 2 stocks, preferably from my watch list that turned out to be great trades that particular day. These trade recaps will be to train our minds on how to spot entries and exits in stocks which are in play. They say the best way to learn is by teaching, so here I go! My best shot!

CLDX---Last night I had this one for a long play. My idea was for a R/G move out of the gate. My reasoning behind this scan idea was the daily chart. I loved the look of the daily it had just started to break out and I thought wow this has potential here for some more. I wasnt too crazy about the 30 min chart ( which I use to better time my entries) I did however fall in love with the daily. Here is a snap shot of it as of 2pm

Now lets zero in on the intraday move. I use the 3min chart intraday to time my entries. I want to make it clear that as of now I am trading on a simulator while I practice and get in my reps before going live again. So any mention of entries and exits are all on sim.

Notice how the stock started red, many may think of that as a short set up forming , what you always HAVE to remember , and this is what made all the difference in the world to me, is , what is the BIGGER picture telling me. The daily , was it overextended? was bad news released ...and the answer to those questions is NO. In other words there would be a higher probability to look for the R/G move than to look for a short. And we are all about taking higher prob set ups. Would I have taken it short if it failed to go green? No, because that wasnt my plan and I had no plan for a short in CLDX. If it collapsed to 0 I would just have to watch it.

Did CLDX offer any other opportunities to enter? Sure it did!

R/G plays are now turning into one of my fav plays, perhaps because of how bullish this market environment is. Maybe in the future I will love G/R plays , who knows. This set up is great when you spot a daily chart which could still possibly go higher. I dont know too much of the psychology behind them, but what i understand is that the buyers from the day before are simply taking profits, however , new people who still see potential take advantage of the dip to buy in. Simple enough :) Hope you enjoyed my first Trade recap