Tonto Trade – ARTC (ArthroCare Corp.)

I am starting to use intraday Pivot Points following some of the guidelines from by Jamie (at Wall St. Warrior).
Last night I identified PPs in my watchlist and this morning, after looking at the gapping stocks, I took a pick to see how those PPs were doing. I noticed that ARTC have printed a red Marubozu that penetrated the intraday PP. Since that move took place with low volume, I was optimistic that it would retest the PP. ARTC did just that in the next three bars, and although the third bar touched the PP, it did not manage to close above it or the 5EMA and it also left a meaningful upper shadow. The 10:30 bar was bearish and also closed below the 5EMA so I decided to enter right there. At 12:30pm ARTC reached my initial 38% fib ext target so I took a partial. I exited a few bars after that when ARTC printed a doji-like candle (indecision). Although at the end of the day ARTC dropped more, I am glad a exited when I did because I am developing the discipline of exiting a trade once the original reason for being in it is not longer there.