Contents:
- Trade Details
- Hybrid 10-Step Trading Strategy Review
- Final Trade Assessment
- Next Steps
Trade Details
- Trade No.: 7/20
- Date: January 27, 2025
- Action: Buy
- Entry Type: Tactical Entry
- Signal: Price testing 50% retracement level resistance
- Stock: MREIT Inc. (MREIT)
- Shares Bought: 200 out of 400 allocated
- Entry Price: ₱13.50
- Position Size: 1/2 of target allocation
MREIT Trade No. 7/20 – Post-Trade Analysis Chart
Hybrid 10-Step Trading Strategy Review
Each step is scored out of 10 based on trade alignment with the strategy.
Step 1: Identify Market State & Trend Context – Score: 7/10
- Market phase: MREIT is range-bound between ₱13.18 (support) and ₱13.61 (50% retracement resistance).
- Trend: Sideways with slight bullish bias after holding above ₱13.18.
- Structure: Higher lows forming, but resistance remains strong at ₱13.61.
✅ Verdict: Moderate strength – A confirmed breakout is still needed.
Step 2: Assess Price Position Relative to Key Levels – Score: 8/10
- Price is above the 200-MA (₱13.21), indicating long-term bullish stability.
- Price is testing the 50% retracement at ₱13.61, which is a major decision point for continuation or rejection.
✅ Verdict: Good setup, but needs breakout confirmation above ₱13.61.
Step 3: Power Bars & Retracement Strength – Score: 6/10
- No strong green power bar today. Volume increased, but price remains stuck below ₱13.61.
- Buyers are defending the range but haven’t broken resistance.
✅ Verdict: Weak confirmation – momentum needs to improve.
Step 4: Entry Confirmation Based on Retracement Levels – Score: 7/10
- Entry at ₱13.50 is slightly below the 50% retracement level (₱13.61), which is a tactical but unconfirmed level.
- A breakout above ₱13.61 is needed to validate the entry.
✅ Verdict: Decent risk-reward, but requires confirmation.
Step 5: Tactical Stop-Loss Adjustments – Score: 9/10
- Stop-loss set below ₱13.30 (previous support level).
- Ensures controlled risk while allowing price fluctuation within the range.
✅ Verdict: Good risk management – effective stop placement.
Step 6: Color Change as a Secondary Confirmation – Score: 6/10
- Today’s candle is neutral with no decisive movement.
- A strong green bar tomorrow would confirm the bullish case.
✅ Verdict: Lack of a clear confirmation bar is a concern.
Step 7: Profit-Taking Aligned with Retracement Targets – Score: 8/10
- Target 1: ₱13.83 (75% retracement level).
- Target 2: ₱14.04 (100% pullback level).
- Exit plan is aligned with major resistance zones.
✅ Verdict: Profit-taking plan is well-structured.
Step 8: Re-Entry at Secondary Retracement Pullbacks – Score: 7/10
- Possible re-entry zone at ₱13.18 (0% retracement) if price dips.
- Adding on strength if ₱13.61 breaks is also an option.
✅ Verdict: Opportunities exist but require more patience.
Step 9: Tactical Position Management – Score: 7/10
- Half of the allocation was bought at ₱13.50, allowing flexibility.
- **Adding the remaining 200 shares only if price confirms above ₱13.61.
✅ Verdict: Well-managed entry sizing strategy.
Step 10: Counter-Trend Trades Only When Retracement Fails – Score: 9/10
- No counter-trend trade needed since MREIT is range-bound.
- The stop-loss below ₱13.30 limits downside exposure.
✅ Verdict: Strong adherence to trend-following principles.
Final Trade Assessment
Trade Rating: 7.4/10 (Moderate Setup)
✅ Trade Execution: The entry at ₱13.50 is within the retracement range but lacks a confirmed breakout.
✅ Risk Management: Stop-loss at ₱13.30 ensures a controlled downside.
✅ Profit-Taking Strategy: Initial target at ₱13.83, scaling out at ₱14.04.
✅ Position Size Strategy: 1/2 allocation used, keeping room for further adjustments.
Next Steps
📌 Monitor price action near ₱13.61. If price holds above this level, consider adding exposure.
📌 Watch for weakness below ₱13.30. If price fails to break out and momentum weakens, consider exiting earlier.
📌 Look for re-entry opportunities. If price retraces back to ₱13.18, a second tactical entry can be evaluated.
🚨 Final Thought: MREIT’s price action remains neutral-to-bullish, but a decisive move above ₱13.61 is required to justify further buying. If resistance holds, expect sideways consolidation. 🚨
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
