Frame of Mind: Neutral, great weekend
MRK gapped up at the open, it started going down right after. I was gonna go long at the gap fill, and since it was still trading at 40.10 I shorted it, 3 penny cut. Went down to 39.80 where I reversed to long, however it continued down to 39.50, i added another 100sh, then on to 39.20. It pulled back to 39.90 only, I was gonna get out at 39.98. Continued down from there to a low of another $1 down from my exit target. It then consolidated between 39.75 and 39.30.
What I did wrong:
My exit target might be too far, I didn’t expect this strong downtrend to materialize since it gapped up, how could it move lower than the previous day’s???? Also, the 1min candle formed a doji.
What I did right:
I cut my losses exactly where I wanted. at the re-test of the the doji