Contents:
- Trade Details
- Hybrid 10-Step Trading Strategy Review
- Final Trade Assessment
- Next Steps
Trade Details
- Trade No.: 4/20
- Date: January 24, 2025
- Action: Buy
- Entry Type: Momentum Entry
- Signal: Previous day’s green bar close and price within the 50%-75% trend reversal zone
- Stock: Premiere Island Power REIT Corporation (PREIT)
- Shares Bought: 1,000
- Entry Price: ₱2.21
- Position Size: 1/3 of PREIT test trade allocation
PREIT Trade No. 4 – Post-Trade Analysis Chart
Hybrid 10-Step Trading Strategy Review
Step 1: Identify Market State & Trend Context - Score: 9/10
PREIT was in consolidation with a slight upward bias, forming a higher low structure near the 50% pullback sweet spot at ₱2.20. The previous day’s green closing bar signaled potential momentum continuation.
Step 2: Assess Price Position Relative to Key Levels - Score: 10/10
- Price was above the 20-MA (₱2.19), indicating short-term bullish momentum.
- Price remained well above the 200-MA (₱1.98), confirming long-term stability.
- The entry at ₱2.21 was aligned with the 50% pullback sweet spot, providing an optimal risk-reward ratio.
Step 3: Power Bars & Retracement Strength - Score: 8/10
- The previous day closed with a green power bar, confirming buying strength.
- The current session started with stability, maintaining price above the 50% retracement zone.
- The absence of immediate selling pressure strengthened the trade conviction.
Step 4: Entry Confirmation Based on Retracement Levels - Score: 9/10
- Entry at ₱2.21 aligned with the 50% to 75% trend reversal zone, which historically acts as a high-probability area for trend continuation.
- Price action confirmed momentum stability at this level, justifying the 1/3 position size.
Step 5: Tactical Stop-Loss Adjustments - Score: 9/10
- Initial stop-loss placed at ₱2.13 (below 33% retracement), ensuring minimal downside risk.
- A more conservative exit trigger would be below ₱2.19, breaking short-term moving average support.
Step 6: Color Change as a Secondary Confirmation - Score: 7/10
- A red candle close below ₱2.19 would weaken the bullish thesis.
- Green candles at ₱2.20 or above would confirm bullish trend continuation.
Step 7: Profit-Taking Aligned with Retracement Targets - Score: 9/10
- First profit target: ₱2.26 (66% retracement level)
- Second profit target: ₱2.30 (75% pullback sweet spot)
- A final exit would be considered at ₱2.40, the previous high.
Step 8: Re-Entry at Secondary Retracement Pullbacks - Score: 8/10
- If price retraces back to ₱2.20, a second entry for additional shares could be considered.
- A failed breakout above ₱2.26 would trigger profit-taking and re-evaluation.
Step 9: Tactical Position Management - Score: 8/10
- If price holds above ₱2.26, an additional position could be added.
- If price breaks below ₱2.19, a manual exit would be evaluated.
Step 10: Counter-Trend Trades Only When Retracement Fails - Score: 10/10
- No counter-trend trades were taken, as the uptrend remained intact.
Final Trade Assessment
Trade Rating: 8.8/10
✅ Trade Execution: Well-timed entry within the 50% pullback sweet spot, aligning with trend continuation signals.
✅ Risk Management: Stop-loss set below ₱2.19, ensuring controlled downside.
✅ Profit-Taking Strategy: Initial target at ₱2.26, scaling out at ₱2.30-₱2.40.
✅ Position Size Strategy: 1/3 of PREIT test allocation, allowing flexibility for future re-entries.
Next Steps
📌 Monitor price action near ₱2.26. If the stock breaks and holds above ₱2.26, consider adding exposure.
📌 Watch for weakness below ₱2.19. If the stock loses momentum, reassess and tighten stop-loss levels.
📌 Look for re-entry opportunities. If price retraces back to ₱2.20 or lower, evaluate a second position.
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
