AAL Stocks Trading Journal – Hit 5th Wave Target

Stocks Swing Trading Journal for AAL

This stocks swing trading journal is a review of a recently closed Long 5th Wave Swing Trade on AAL. Before the markets opened, on the 7th November 2018, we posted a video in our Signals membership for a potential Long Swing Trade for AAL on the 60 minute time frame. The video had a quick analysis, entry price, Stop Loss and Target price for this potential 5th wave move Long on the 60 minute time frame for $AAL. The original video can be viewed  >>>HERE<<<   . The trade entered during the first hour of the trading session on the 7th November and hit our 5th wave Target on the 13th November

Our Stocks swing trading strategy involves trading the 5th Wave of the Elliott Wave sequence as it is the highest probability move in a “with trend” trade.  The Wave 4 in this case pulled back and found final support in the Green Pullback zone, which indicates an 85% probability that the 5th Wave will go on and make a new High in this current Bullish trend. The Pullback zones are part of our Elliott Wave Indicator Suite.  The original chart shown below shows the setup with a Long entry price of $36.02 with Stop below the Wave 4 low at $34.81.  Our automated 5th Wave Target zone in Blue was around the $38.20 price for this potential Long Swing trade, giving a Risk to Reward of 1:2

Below this chart is commentary on how the trade went and chart showing exit when price smashed through our automated target zone. (Click on the image to enlarge in another window)

AAL Stocks Swing Trading Journal – What Happened Next

We had a strong entry and price momentum on the 7th November and AAL closed the day forming a bullish flag on the 60 minute intra-day chart (as below).  We endured a pullback during the next couple of days, in line with bearish markets and the price found support around our original entry price, which is no coincidence as it is a strong support and resistance level.  Then, with the oil price weakening on the 12th and 13th November, the Bullish momentum resumed on our Swing trade for AAL and it hit our target zone during the trading session on the 13th November.  We usually see airline stock prices rise when oil dives as, in theory, the markets believe they will make more profit due to lower fuel costs.

The Chart below shows the 5th wave move on our swing trade for AAL and is typical of this type of trade on an Intra-Day time frame . Remember, the original signals video can be viewed  >>>HERE<<<   . (Click on the image to enlarge in another window).

This is a great example of our 5th Wave Stocks Signals service combining with our Elliott Wave Indicator Suite, which is available for NinjaTrader, ThinkorSwim, TradeStation and MultiCharts.