The workshop gave me plenty to think about, particularly in better establishing my rules and general trading approach. In the coming weeks, I'll try to share some of the lessons learned over the past two days.
Maybe it's a dead horse by now, but one last quick follow up on ININ. I asked Mike Coval about the trade, getting stopped out and whether or not to re-enter. It was while Dave Johnson was speaking, so we looked at the chart very briefly.
He felt that my biggest fault was assuming the new potential support would hold and setting the stop loss level based on that. Particularly with how the stock has reacted to new highs for the last year, with steep pullbacks, I should have had a stop at or under support at 17 or so.
I tried to make a quick, quiet case for the ascending triangle being broken on big volume with a pullback and a successful test of new support. But he didn't seem too interested in that and pointed to the high MACD and Stochastic turning down. I should point out that we didn't look at it on the interactive chart.
If I were to follow what I learned at the workshop, I would consider it both a confirmed hammer and a bullish engulfing pattern, which is a self-confirming pattern. New support. But I don't know that I will take the trade. Dave Johnson talked about that a bit. Seeing the signal but not taking the trade. However, I'm still wrestling with this and won't attempt any psycho-talk.
Anyway, as Dave Johnson said many times today, patterns and candlesticks are subjective. Everyone is entitled to a slightly different view and all can be "right."
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