LB – Stocks Trading Journal – Short Swing Trade
Stocks Trading Journal for Short on LB
This stocks trading journal is a review of a recent Short Swing Trade on LB. On the 7th March 2018 we posted a video in our Signals membership for a potential Short Swing Trade for $LB 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 short on the 60 minute timeframe. The original video can be viewed >>>HERE<<<
Our 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 in this case pulled back and found initial resistance in the Amber Pullback zone, which indicates an 80% 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 7th MArch 2018. Short entry price of $43.98 with Stop above the Wave 4 high at $45.61. Our automated 5th Wave Target level in Blue was around the $40.50 level for this short trade, giving a 1:2 Risk to Reward.
Below this chart is how the trade went and chart showing exit when price hit trailing stop after price hit our automated target zone.
LB Stocks Trading Journal – What Happened Next
GReat entry into this short in the second hour of the trading session on the 7th March. The price then became range bound at the entry price for the remainder of the session. On the 8th March the price made a big move down and broke the previous wave 3 low and closed near the lows of the Day. On the Friday 9th March we already decided that we would use an aggressive trailing stop to mange this short swing trading on LB as we didnt want to carry it over the weekend, In the 2nd hour of the session the price touched out automated target zone, so a trailing stop was placed just above the high of this hourly candle to lock in profites. During the 4th hour of Friday’s trading session the trailing stop was taken out, giving a 1.5% profit on the trading account balance for this short trade on LB.
The chart below shows trailing stop position and exit for this typical 5th wave swing trade over 3 days using our Elliott Wave indicator suite.
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.