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 market open  7th November 2018, we posted a video in our Signals membership. Complete setup for a potential Long Swing Trade for AAL on the 60 minute time frame. The video had a quick analysis, Entry, Stop Loss and Target price for this potential 5th wave move Long 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. The 5th wave is the highest probability move in a “with trend” trade.  The Wave 4 in this case pulled back and found final support in our Green Pullback zone. Therefore indicating 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.  The Stop Loss below the Wave 4 low at $34.81.  Our automated 5th Wave Target zone in Blue was around the $38.20 price. Therefore this potential Long Swing trade, was 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

Strong entry and price momentum on the 7th November with AAL forming a bullish flag on the 60 minute 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. This 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. Our Swing trade for AAL hit our target zone during the trading session on the 13th November.  We usually see airline stock prices rise when oil dives. 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. This 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.