• Trading Software
    • TradingView
    • NinjaTrader
    • MT4
    • Thinkorswim
    • TradeStation
    • MultiCharts
  • Online Classes
  • Trading Courses
  • Free Resources
    • Economic Calendar
    • Blog
    • Webinars
    • Newsletter
  • Sign Up
  • Sign In
Trade The FifthTrade The Fifth
  • Trading Software
    • TradingView
    • NinjaTrader
    • MT4
    • Thinkorswim
    • TradeStation
    • MultiCharts
  • Online Classes
  • Trading Courses
  • Free Resources
    • Economic Calendar
    • Blog
    • Webinars
    • Newsletter
  • Sign Up
  • Sign In

Education

Home » BITA – Short Stocks Trading Idea of the Week 15th Jan 2018
image of BITS stocks trade idea trading chart

BITA – Short Stocks Trading Idea of the Week 15th Jan 2018

  • Posted by Paul Bratby
  • Categories Education
  • Date January 15, 2018
  • Comments 0 comment
0 shares
  • Share
  • Tweet
  • LinkedIn
  • Reddit
  • WhatsApp

BITA Stocks Trade Idea – Short

The Wave5trade Elliott Wave Indicator suite has been used to put together this SHORT Stocks Trade Idea on BITA.  As per the chart below the overall bearish trend can be seen and the automated Elliott Wave count indicates the BITA (Bitauto) stock has pulled back against the main Bearish trend on a Wave 4.  The wave5trade 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 has pulled back and found resistance in the Amber Pullback zone, which indicates a 80% 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.  We will discuss the remainder of the potential Short trade setup on BITA below this chart.

image of BITA Daily Trading Chart with Elliott wave count

There are quite a few elements that are included in our Elliott Wave Indicator Suite for the NinjaTrader NT8, Thinkorswim and TradeStation Platforms. Lets discuss in order to build up the picture of this potential Short trading opportunity on BITA.

 

  1. The Wave 4 pullback has found resistance in the Amber Zone of our Specially programmed zones to indicate a 80% probability of the 5th wave making a new high.
  2. The 5/35 Oscillator (included in our indicator suite) shows the Wave 4 pullback is between 90% and 140% of the lowest point on the oscillator during the 3rd wave.
  3. The Stochastic has crossed over in the oversold zone and is heading up.
  4. The Risk to Reward is 1:2 to the automated Target zone that our Elliott Wave Indicator Suite plots on the chart. So risking 1% of trading balance between stop loss and entry gives a potential reward of 2% into the target zone.  The minimum Risk to Reward suggested when trading the 5th Wave is 1:1.6 so in this particular case we are over this into the target zone.
  5. The Entry strategy is developed using previous price action AND importantly below the 6/4 Moving Average Low (Red MA line on chart) which is also part of our Elliott Wave trading indicator suite.
So in this case we can see that we have a great deal of evidence that the Wave 4 has behaved as expected and we have a good risk to reward for the trade.  This gives a high probability of success for a Short Trade on BITA with the following.

 

Short Entry at $33.92, which is below the 6/4 MA Low and above the whole $34 psychological support level.

Stop Loss at $38.42 which is above the wave 4 high.

Target Zone $24

This can be Seen more clearly on the chart below (click to enlarge, then backspace on your browser to return to this post):

image of BITS Daily trading chart showing pullback zones and trade entry

Please watch the Video Tours of our First Ever Elliott Wave Indicator Suite for these trading platforms by clicking on the link below.

VIDEO TOURS >>>>HERE<<<

Tag:Short trading idea, Stocks trade idea, Swing Trading, trading education

  • Share:
author avatar
Paul Bratby

Previous post

BIDU - Long Stocks Trading Idea of the Week 8th Dec 2018
January 15, 2018

Next post

Long Setup on $CAG - 18th Jan 2018
January 18, 2018

You may also like

?Potential Long SwingTrading Opportunity on $W Wafair Inc
19 January, 2021

Brief video setting up a potential Long Swingtrading opportunity on the Wayfair Inc Stock using our Elliottwave Indicator suite

?Elliottwave indicator suite calculates and prints the elliottwave count
16 December, 2020

Quick video to show how our Elliottwave indicator suite calculates and prints the elliottwave count, the probability pullback zones and the automated 5th wave target zone..

image of tradingview stocks swing trading chart trade management
Trade Management for Stocks Swing Trading
9 July, 2020

Leave A Reply Cancel reply

Your email address will not be published. Required fields are marked *

Categories

  • Blog
  • Daily Videos
  • Education
  • Trading Journals
  • TradingView
  • Uncategorized
  • Videos
  • Webinars

Archives

Trade The Fifth Logo

USA Office: 19 W 34th Street, Suite 1018,
New York, NY 10001
US Phone: +1 (415) 992-7787

Ireland Office: Unit 3D, North Point House,
North Point Business Park, New Mallow Road,
Cork, T23AT2P, Ireland

Copyright © 2021

Learn More

  • Trade Ideas
  • Contact Us
  • About Us

Legal

  • Privacy Policy
  • Terms of Service

Latest Tweets

Tweets by tradethefifth

Swing trading, Day trading, short-term trading, options trading, and futures trading are extremely risky undertakings. They generally are not appropriate for someone with limited capital, little or no trading experience, and/or a low tolerance for risk. Never execute a trade unless you can afford to and are prepared to lose your entire investment. All trading operations involve serious risks, and you can lose your entire investment. No trades are recommendations or advice and we cannot be sued for losses of capital. All trades are for educational purposes only. Contact your broker or RIA for execution, margin, and other capital requirements. All users and viewers of wave5trade.com adhere to ALL terms of service on www.tradethefifth.com

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results. Past performance is not necessarily indicative of future results.

Testimonial Disclosure:  Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.

Trade The Fifth