Chart above was captured around 11:40am ET. But at the open price gapped down then continued a little further down before reversing. Before it reversed it looked like confirmation after yesterday's large bearish engulfing pattern with a close below the 8ema. I had to get out. Sold for $2.10 per option which was a loss of $1.10.
Now I'll see how it closes for the day. Only a close above yesterday's high would be a bullish sign for today. If it closes above the 8ema but below yesterday's high, that's not a valid candlestick signal. But over a longer period, we may be forming a cup and handle pattern which would be bullish.
If it closes today under the 8ema I should probably enter short but I'd rather just watch for another day. Sorry this didn't work out. At least we contained our loss and followed our rules, which I understand is the definition of good trading.
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