First day of MRNA where it broke trough very important Higher Time Frame (HTF) levels whilst having a very strong fundamental catalyst. This playbook captures two trades: a First consolidation - Morning continuation trade and a Pullback (PB) retracement. The move during the morning was huge. In the end we trended but but didn't manage to close into/near the high of the day.

1. D1 Catalyst - HTF BO
First consolidation – Morning continuation
PB retracement
Ticker: MRNA
Date: 13-12-22

2. Stock selection & Intraday Fundamentals
Catalyst:
MRNA had a positive results on their
cancer vaccine.
MRNA gapped up over 2ATR’s. And
broke two important HTF levels in
the open.
Fundamentals
Float: 346 million.
IO%: 66%.
Short float: 5%
ATR: 8,55
Gap: 13,5%
Sector: Biotechnology
Moderna Inc. is a clinical stage biotechnology company pioneering
messenger RNA therapeutics and vaccines for patients. The company's
product pipeline which is in clinical stage consists of mRNA-1647 for
Cytomegalovirus Infectious Disease, mRNA-4157 for Solid tumors, mRNA-
2416 for lymphoma and mRNA- 2752 for Relapsed/Refractory solid tumors
malignancies. Moderna Inc. is based in Cambridge, United States.

3. Bigger picture
Tuesday, we had a positive CPI print
just like last month, but the market
reacted negatively. This could mean
that the market is now more focused
on a potential recession, or we are
perhaps in a market where ‘good’
news now isn’t bullish anymore but
normal.
Powel increased the rates by 0.50bps
and the market reacted negatively.
But the market was more reacting to
the sentiment of the speech, and not
on the rate hike itself.
Yesterday we broke through the last
week lows.

4. Bigger picture : IBB showing relative strength.
The biotechnology index is showing some relative
strength last months compared to the SPY and
QQQ.
Also, it is holding up quite well last three days
when everything else was tanking. MRNA might
have played a part in this since this is one of the
biggest holdings of this ETF.

5. Bigger picture : HTF Breakout
From the October lows MRNA
made a 60% move.
Price consolidates and on D1 price
breaks out of the Higher Time
Frame (HTF) resistance level. Price
closes below another HTF level. But
on the open of D2 this level breaks
and price trends higher.
I like to see a strong daily chart
when I am trading to the long side.
I would give R1 (188) a 9/10 and R2
(197,50) a 8/10 significance.

6. HTF BO &
Morning
continuation
– Trade
Strategy
Stock selection
-Stock in play with a significant (technical) catalyst, earnings report or strong theme.
-Elevated RVOL above 3.
-Strong move from the open (0.75ATR move) OR exceptionally strong volume during open.
Breakout variables
-Stock is in an uptrend.
-Significant price level on the daily chart that makes more participants focused on this level.
-Breakout is occurring from a base. When this breakout occurs on volume it is more likely to follow through
initially.
-We are trading in a strong market. We are in a long term down trend but since October we have been
trending up. Market breadth is relatively strong.
-Time spend above the breakout levels: 2-3 min intraday at the open & 10m intraday after the open. For
swing trades look for a daily close above this level.
-Surge in trading activity when price trades through level.
-Price history has shown that breakouts from a base have been successful. Also, when the stock gapped up a
lot. Over time stocks will have many of the same participants. Traders like most humans are repetitive in
their behavior.
Morning continuation – First consolidation setup. Trade idea.
A stock has made a strong drive outside its ranges and is now trending. The stock goes through a period of
consolidation as big funds accumulate. With a new level to risk against – more traders jump in, and the big
money must continue to chase higher. This consolidation, the first in the trend, usually lasts 20-30 minutes.

7. First consolidation – Morning continuation
Trade Management
Move2move trade & expectation
-A momentum trade that can been seen on the 3m & 5m chart.
-I want to capture this momentum. My price target could be a measured move, a specific level or a decrease in momentum. I am not going to turn this into
pullbacks.
-Price trends on volume and holds the 5m 9EMA, when it closes below this level, the move is done. We might pull back/consolidate and trader higher, but this
is not relevant. This is my main reason2sell.
Risk management
Trigger: Usually a false breakdown, and lower high off the bottom of the consolidation.
Entry: As close to the bottom of the consolidation as possible.
Risk: Below false breakdown candle
Flat: New low below 1m 20 EMA.
Profit taking into psychological numbers and overextensions.
-Comes into price target/indicator and begins to reject this price.
-Heavy sellers on the tape into key level.
-Consolidation break to the downside.
-Fails to hold above a key level.
-Sharp unstainable moves higher.

8. First consolidation – Morning continuation
Strong opening drive. Already up 2 ATR
from the low of the day.
Consolidates above HTF key level on low
volume.
Consolidation is on shallow volume.
Ideal reasons2sell:
-Already up 2ATR from LOD,
2.5ATR would be a good measured
move.
-Shallow volume and a fail to hold 208
would be another good reason to sell a
large proportion. Indicated that the
momentum is slowing.
-A small percentage of risk could have
been trailed along the 1m 20 EMA

9. Trend day &
Pullbacks–
Trade Strategy
Stock selection
-Stock in play with a significant (technical) catalyst, earnings report or strong theme.
-Elevated RVOL above 3.
-Strong move from the open (0.75ATR move) OR exceptionally strong volume during open.
Trade2hold factors
- Holding above significant HTF support levels: 188,50 & 197, with 9/10 & 8/10 importance level respectively.
-Strong market, holding the lows in an uptrend.
-Strong catalyst: positive data on cancer vaccine.
- Elevated RVOL.
- Room to trend on the daily.
- Strong open through two significant resistance levels. How ever we already made a 3 ATR intraday move.
Overall thought process – Trend day
We have shown extreme strength. And the variables for a trend day are clearly present. However, we have
already made a huge move on the open. Therefore, the chance we are closing at HOD and breaking the
morning high is slim. This doesn’t mean we can’t trend intraday with higher highs and lows. But I should
choose to take profits quicker into up moves. Therefore, the most optimal trade strategy would be a mix
between a move2move and trade2hold.
Pullback variables
-Pattern is visible on multiple time frames: 1m, 5m and 15m.
-Strong open/morning.
-Consolidation period of shallow volume.
- Elevated volume when trades start working.
-Bounce of support: 5m on 20 EMA or VWAP.
-Bids reclaiming specific prices at bottom of consolidation.

10. PB retracement -
Trade Management
Optimal trade strategy: Move2move & Trade2hold
combination.
I think this can trend intraday, but I don’t think a HOD
close is likely.
Therefor I want to capitalize on the shorter/momentum
moves but also hold partials through pullbacks.
Risk management
Trigger: Usually a false breakdown, and lower high off the
bottom of the consolidation.
Entry: As close to the bottom of the consolidation as
possible.
Risk: Below false breakdown candle
Trade2hold management
If next retracement is on shallow volume and
forms a higher high, then add back so that
cost basis is below the higher low.
Flat
Exit the position when there’s a significant
close below the 5m 20 EMA:
1) either a new low is made below the 20
EMA;
2) Selling volume increases on this candle.
Exit strategy move2move trade, 67-75% of
position.
-Comes into price target/indicator and
begins to reject this price.
-Heavy sellers on the tape into key level.
-Fails to hold above a key level.
-Sharp unstainable moves higher.

11. Pullback and Intraday trend.
-Price holds support.
-In the consolidation
every fail below 199
got reclaimed quickly.
-Pattern is visible on
multiple time frames.
-Volume increases
when PB starts
working.
-Trend is done when
price closes below the
20 EMA and then
makes a new low
(14:45PM).