Contents:
- Trade Details
- Hybrid 10-Step Trading Strategy Review
- Final Trade Assessment
- Next Steps
As part of our planned 20 test trades using the Hybrid 10-Step Trading Strategy, we executed our third trade on January 23, 2025, with Universal Robina Corporation (URC). Below is a detailed evaluation of the trade, analyzing our entry decision, market conditions, and trade management.
URC Daily Chart Showing Key Retracement Levels and Trade Entry.
Trade No. 3 Details
Trade No.: 3/20
Stock: Universal Robina Corporation (URC)
Trade Date: January 24, 2025
Action: Buy
Entry Type: Anticipatory Entry
Signal: Green Tail Bar
Entry Price: 66.85
Shares Bought: 50
Position Size: Remaining 50% of target URC trading shares, completing portfolio allocation
Hybrid 10-Step Trading Strategy Review
1. Market State & Trend Context - Score: 7/10
The stock remains in a strong downtrend, making lower highs and lower lows.
The 200-day MA (97.40) is trending downward, reinforcing bearish sentiment.
The 20-day MA (74.41) is also declining, acting as dynamic resistance.
URC closed at 66.80, still significantly below both moving averages.
Verdict: The stock remains weak, but a potential short-term reversal setup is emerging.
2. Position, Location & Key Retracement Zones - Score: 8/10
The stock is testing key retracement levels:
55% retracement (67.65) is near the entry zone.
75% retracement (68.55) is the next resistance.
Hard resistance at 71.50, where an exit is planned if reached.
Verdict: The entry at 66.85 is well-positioned within retracement structure but faces nearby resistance.
3. Power Bars & Retracement Strength - Score: 6/10
A green tail bar formed near key support (67.00), suggesting buyers stepped in.
However, previous red power bars indicate that sellers still hold dominance.
Verdict: Early signs of reversal, but stronger confirmation is required.
4. Entry with Confirmation from Both Strategies - Score: 6/10
The entry was made in anticipation of a bounce, based on a green tail bar at key support.
A stronger confirmation would have been a green power bar with volume.
Verdict: Entry is slightly aggressive but aligns with retracement principles.
5. Tactical Stop-Loss Adjustments - Score: 8/10
Stop-loss level: 65.50 (aligned with key retracement failure level).
A break below 65.50 would confirm further downside risk.
Verdict: The stop-loss is correctly placed for risk control.
6. Color Change as Secondary Confirmation - Score: 6/10
The green tail bar signals possible strength, but it must be followed by a green power bar.
If the price closes below 65.50, bearish momentum would resume.
Verdict: Pending confirmation.
7. Profit-Taking Aligned with Retracement Targets - Score: 8/10
First profit target: 69.60 (100% retracement level).
Next target: 71.50 (hard resistance, planned exit).
Verdict: Profit-taking levels are well-placed.
8. Re-Entry at Secondary Retracement Pullbacks - Score: 7/10
If the price pulls back to 67.00 and holds, a re-entry could be considered.
Verdict: Additional confirmation is needed before adding to the position.
9. Tactical Position Management - Score: 8/10
Position size at 50% allows flexibility for adjustments.
Verdict: Risk is well-managed.
10. Counter-Trend Trades Only When Retracement Fails - Score: 7/10
If the price falls below 65.50, a sell signal would emerge.
Verdict: Stop-loss must be honored strictly.
Final Trade Assessment
Trade Rating: 7/10
Pros:
✅ Entry is at a key retracement level.
✅ Green tail bar confirmation suggests early support.
✅ Good risk management with a 50% position size.
✅ Logical profit-taking zones set at 69.60-71.50.
Cons:
❌ Volume is low, suggesting weak buyer conviction.
❌ Major resistance overhead at 71.50.
❌ A stronger entry would have been a green power bar with volume confirmation.
Next Steps:
Monitor for bullish continuation above 67.65.
Move stop-loss to breakeven (66.85) if price reaches 69.60.
Exit if price closes below 65.50.
Conclusion
This third trade in our 20-test trade series follows the Hybrid 10-Step Trading Strategy, and while the entry was well-positioned, it lacks strong confirmation. The trade will be monitored for momentum continuation, and risk will be managed accordingly. Future trades will focus on higher volume confirmation before entry.
Disclaimer: This post is for informational purposes only and should not be considered financial advice. Always do your own research before making any trading decisions.
Related Readings
- Micro Stock Trader: Comparing the Modified 10-Step Trading Strategy vs. Retracement Trading Strategy
- Micro Stock Trader Portfolio Tracker Page
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