AVGO Stock Trading Journal – Short Swing Trade

Stocks Trading Journal for AVGO Stock Short Swing Trade

This stocks trading journal is a review of a recent Short Swing Trade on the AVGO Stock. On the 28th April 2018 we posted a video in our Signals membership for a potential Short Swing Trade for $AVGO. The video had a quick analysis, entry, Stop Loss and Target price for this potential 5th wave short on the 60 minute time-frame.  The original video can be viewed  >>>HERE<<<

Our TradeTheFifth strategy involves trading the 5th Wave of the Elliott Wave sequence. Above all, as it is the highest probability move in a “with trend” trade.  The Wave 4 in this case pulled back and found resistance in the Green Pullback zone. Therefore indicating an 85% probability that the 5th Wave will go on and make a new low in this current bearish trend. The Pullback zones are part of our Elliott Wave Indicator Suite.  The original chart shown below shows the setup before the trade triggered when the trade was set up before the markets opened on the 28th April 2018.  Short entry price of $230.40 with Stop Loss above the Wave 4 high at $234.40.  Our automated 5th Wave Target level in Blue was around the $233 level for this short trade, giving a 1:1.8 Risk to Reward.

Below this chart is how the trade went and chart showing exit when price hit our automated target zone in just one trading session…

AVGO Stock Trading Journal – What Happened Next

Great entry into this short in the 3rd hour of the trading session on the 30th April.  The bearish momentum stalled a little towards the end of the trading session. The next day was a similar picture with initial strong Bearish momentum followed by a Pullback. The price gapped up on the 2nd of May, but didn’t take out the Stop Loss and quickly closed the gap. Therefore returning the price action to the intra-day bearish trend.  On the 3rd of May we see a gap down and hit the price target in the first hour of the trading session. Therefore a great opportunity to take 1.8% profit on the trading account balance.

The chart below shows price hitting the target zone for this typical 5th wave swing trade on a 60 minute timeframe. For instance, this usually takes a few days using our Elliott Wave indicator suite.  We can see the price bounces off our 5th wave target zone for the start of a potential shorter term trend reversal. Similarly also trade-able using another strategy included in our online course.

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.