MRDIY Trade 20 Jan 2021 +24.36% Profit

REASONS FOR THE TRADE:

Weekly chart:
10-week MA was angling up.

Daily chart:
Price was consolidating in a potential triangle pattern at the time of the trade was considered.

See MRDIY weekly and daily charts below.

ENTRY:

Bought MRDIY on 20 Jan 2021 at 3.12 when it was consolidating within a potential triangle pattern after a strong up move. 

EXIT:

MRDIY broke out on 9 Feb 2021 to confirm the triangle pattern. The projected target was at 3.75 and 4.04. Took partial profit on 18 Feb 2021 at 3.75.

MRDIY formed a potential bearish divergence between price and MACD on 07 Apr 2021 when price made a new high but MACD traced a lower high. Having made a 5 wave advance, it suggested that MRDIY uptrend could be ending. Decided to close remaining position at 4.05 on 07 Apr 2021 when the high volume during that day with price declining suggested MRDIY was under heavy selling. 

Overall I made a +24.36% profit from the trade.

LESSON LEARNT:

Could have bought at a better price if I have waited for stochastic %K to reach oversold level and price testing the lower line of the triangle pattern. This happened on 03 Feb 2021 when MRDIY was trading between 2.87-2.97.

Disclaimer:

Trading and investment involves risk, including possible loss of principal and other losses. I shall not be responsible for any losses or loss profit resulting from trading or investment decision based on my posting and any information presented in this blog.