Managing a Trade

I have a current short position on in NIHD (NII Holdings) that is in my Swing account. This trade has had an unusual behavior to it in that it gave the appearance of solid support above the 22.50 level.

However, my perspective on this has been that it was just a normal Bear/Bull battle to hold that level. Here is a current chart showing the action on the 5 minute chart (what I watch for open positions):

As you can see, there was some really good volume yesterday. The Acc/Dist line actually was diverging from price as well. Now today you see that it finally gave up the 22.50 level and is likely going to hold the 22 level for today.

For now I have a trailing stop on the short position set to 3% and will let that ride.

2 thoughts on “Managing a Trade

  1. Hi Derald –

    Thanks for posting this topic. The Acc/Dist that you discussed here. I issued the William’s Acc/Dist indicator available on TC2000.com. So if the Acc/Dist was not diverging from the price action then the support at 22.50. On 12/5 Acc/Dist I notice that there was a battle and then gave up. Am I reading this correctly?

    Regards

    Noman

  2. You are correct with NIHD. On 12/5 the price was declining while the Acc/Dist line was diverging (going up) with some elevated volume. The next day starting the slow decline that we have seen since (I am looking at a 10d 5m chart).
    Good eye.

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