Why Not Better Profit? – Week of 8/5/22

On Friday morning, the market gapped down after jobs numbers were released. This put most stocks back to the middle of their ranges, not giving any immediate set ups for open. TSLA had been on a 200 point run the last couple of weeks, so it would be one to look for a short if the market was going to remain weak for the day.

My top watch was COIN. I was looking for trade below Thursday's low at 86.78, which coincided closely with the pre-market low. This would give it a chance to fill the gap from Wednesday to 82.25. COIN put in an opening range low of 86.52, before running up to 98.87 over the next 45 minutes. I scalped around this, never allowing it to confirm the opening range low. The first entry was a trade just to take a trade, in anticipation of a break below the opening range low, and ended up being a loser. After a few more scalps, I was essentially break-even, and had spent a bunch of mental capital taking these lesser trades. At that point, I decided that the day was going to be a wasted day, and just watched the rest of the day.

Meanwhile, TSLA tested the 903 pivot from the low on Wednesday, putting in a low of 896.12 30 minutes after open, before printing its first green candle at the top of the new hour.

On the first candle of the next hour, TSLA made a new low of 895.09, with proper entry the very next candle on the break below. TSLA never saw above 895 the rest of the day, putting in a low of 856.63.

TSLA 5 Minute Chart 8/5/22
TSLA 5 Minute Chart 8/5/22

I did not take this trade, because I had already burned my mental capital for the day taking a trade on anticipation, before it confirmed, and then scalping to get back to break even.