Lessons learned | AVGO stock | 30 minutes - $4/ share dollar rebound and up to $12/ share - more than 2+% | Demand box | Be patient | 5 min chart EMA 50 - Take profit - $351/ share | Fib Retracement 1.618

 5 min chart 

I decided to move on AVGO to buy dip, and got caught on stop loss with $75 dollars 100 share. Of course it is too close related to ATR. 

First trade, stop loss should consider ATR - too close to entry price, stop loss means losing money. 

5 minute trade 

• 10:26 - 10:31 AM EST - 5 minute trade
• 100 share 
• Entry price: 344.1096
• Take profit: 343.32
• Profit: ($76) Loss US dollars 

Analysis: Stop loss is not carefully considered, I just gambled on the rebound and short-term profit. I did not wait long signals coming out together. Be patient. 

I came back and then noticed that demand box showed up. It is time for me to take entry price as is. 

ATR 2.10, 1.5 x ATR or 2.0 x ATR, so stop loss should be $4 US dollars, the stop loss is $4 dollars less, $340/ share

7 minute trade 

• 11:03 - 11:10 AM EST 
• 100 share 
• Entry price: 345.7522
• Take profit: 346.3701
• Profit: $62 US dollars 

Should hold the position for another 2 - 3 hours until AVGO stock hits resistance level - EMA 50 - pivot level, the profit will be $10 * 100 shares = $1000 US dollars

I did not think about how to find measured move, which should be related to pivot levels and then it is quick and easy to find using the pivot levels indicator. 

First 5 min chart EMA21 is the first resistance, if AVGO breaks up, then it should move up to EMA 50. Or using pivot levels. Actual final rebound is up to EMA 100. 

Lessons learned:

1. Set stop loss properly - using ATR 
2. Be patient, wait for confluence of long signals - demand box, FVG, order block, consolidation range lasted 60 minutes
3. Take profit - Consider first resistance level - 5 min chart AVGO EMA 21, next level EMA 50, EMA 100 
4. Compared to other stocks, AVGO stock's rebound started after 60 minutes consolidation, and it went up 2%, 10/ share. I can make 1000 US dollars in less than 3 hours with 100 shares. I should  consider the profit and then work hard and concentrate on the task.  

5 min chart - confluence

Action - order block area - VWAP 5 min second dev - Wait demand box showed up and pivot low $342.34 showed up - FVG showed up in light green color - Ready to get in - Missed EMA 5 bright color line 

Confluence to buy dip: 

1. Demand box - 5 min chart - start from bar count 16 on 5 minute chart 
2. 3 bars - volume and gain - check the indicator 
3. MTF zigzag - show 342.34/ share - Lowest pivot point
4. Light gray color - should be SMC concept - order block
5. VWAP - 2nd dev line - support 
6. Bar count No. 10 - D - No 15 - No. 16 - demand box showed up - It took No. 7 to No 16 - 50 minutes - consolidation range 
7. Bar count No. 18 - FVG - strong bullish signal - Add all positions at bar count No. 18 - Wait
8. Show clear picture from bar count No. 6 to Nov 20

The follow chart is not so clear, need a better one 

Confluence:

1. 5 min - order block
2. Demand and supply box - demand box - show strong volume in three bar pattern
3. Buy - 
4. Sell - Should be patient - 30 minutes - 400 US dollars - This time take profit should be close to 5 min chart - EMA 200 - purple color line on top of the chart - Close to $360/ share
5. Sell - Exit early - Not patient - Need to learn how to measure move of rebound - ?
6. Wait for 5 min bar showing - peaked 

Lessons learned:

1. 1 min chart is different from 5 min chart, once 5 min chart showed up demand box, I should stay on 5 min chart and let chart run without monitoring all the time. 

1 min chart 

5 min chart 

Lessons learned:

1. Compare 1 min chart to 5 min chart a few times, and then find the entry price with different signals
2. Advanced chart pattern in one minute chart showed double bottom - Second bottom is the entry price

Actual my trade should be the following:

Compared to my actual trade:

7 minute trade 

• 11:03 - 11:10 AM EST 
• 100 share 
• Entry price: 345.7522
• Take profit: 346.3701
• Profit: $62 US dollars 

Should hold the position for another 2 - 3 hours until AVGO stock hits resistance level - EMA 50 - pivot level, the profit will be $10 * 100 shares = $1000 US dollars

Replay the following one hour 1 min chart again and again, at least 10 times and then learn how to read 1 min chart and also make informed decision based on 5 min, 15 min charts information quickly. 

Take profit:

1 min chart - EMA 50 vs 5 min EMA 9 

1 min chart - EMA 100  vs 5 min EMA 20   <- First resistance level 

1 min chart - EMA  200 vs 5 min EMA 50    <- Second resistance level 

Replay another hour 1 min chart a few times:

Using pivot level  

And find next upper level pivot levels - First take profit measured move is beyond the pivot levels, then it will retrace to retest the pivot level. 

Next upper pivot level - $352/ share - Should set the measure move - $352 + ATR = close to $357/ share

1 min chart 

1 min chart 
Supply box - Sell the position 

Bright yellow - EMA 5 - 

Introduce indicator related to supply and demand 

AVGO stock - 5 min chart - Make sure that 5 min demand box showed up in green box - rectangle 

EMA 5 crossed up EMA 9 - stay above EMA 9 all the time - EMA 5 bright yellow color