The Setup
This one brewed fast.
After a steady push up in JNJ through the afternoon, I noticed price stalling just below $159.40. It had extended from the VWAP, and momentum was slowing – MACD was flattening, and price was clinging to the 9 EMA like a tired climber.
I was watching for signs of weakness, and when we saw that rejection candle paired with increased volume and a MACD curl down, I took the short.
The Trade
- Entered as price rejected the 9 EMA and lost structure
- MACD flipped red, confirming momentum shift
- Volume increased on the first red candle – not massive, but enough confirmation
- TP was just above VWAP, where I figured buyers might step back in
It wasn’t a huge range, but it was clean.
The move dropped about 1.13 points, or 0.71%, in under 40 minutes. That’s all I needed – I was in, protected my risk, and didn’t overstay.
The Lesson
This one was about not forcing it. I didn’t chase the move up, didn’t short too early. I waited for price to tell the story, then just followed the script.
Sometimes it’s not about massive percent gains – it’s about being right, being quick, and being done.
Trade Summary
Time in Trade: 39 mins
% Gained: +0.71%
Volume: 75.35K during move
Setup Type: EMA rejection + MACD confirmation
Strategy: Short fade into VWAP
Final Sip
This JNJ short brewed up nicely – not too strong, not too weak. Just the right dose of confirmation and timing. More of these, and I’m caffeinated enough for the week.