Stocks Day Trading Video Journal for LMT using our Black Box Breakout Indicator in our Stocks Day Trade Signals Membership
Video journal trading journal for a stocks day trade that we did on Friday the 9th of November on the LMT Stock. My trading team and I put together both futures and stocks trades every day and send them out to our memberships.
Now with our stocks day trading membership we use different type of strategies. This one trade in particular was one of six or seven on Friday that we used our black box breakout indicator suite for. So this is LMT, Lockheed Martin, on the five minute chart. If you look down at the bottom left, the Gray candle was the open. This is our special W5 EMA cloud here.
Setting the stage for this Day Trade on LMT
We get the initial high around about 309.73 and we like that. And then we pull back down and find support in our EMA cloud. Now this is the perfect opportunity. Then our black box breakout indicator gives us our signal 309.72 was the entry and prints 308.72 as the stop loss.
Now sensibly I called out the trade here to go in just above the high of this pivot here. So slightly higher than our software indicated. Now on our Twitter feed which gives alerts directly to your phones with push notifications. We can see here on LMT the time frame five minute, the long entry was at 309.97. This is down at the bottom of this Twitter feed and stop loss at 308.70. So then we in the next five minute candle we got the entry.
Before I go on to how we managed this trade I just want to talk about these gray and blue candles. Now these are neutral candles. The black box break our indicator works with our EMA cloud. But also it works on price action and volume, and combines them all together. We get the green candle here which denotes increased volume and then we get increased volume again. So we get this signal and that’s the move here. And as you can see on the five minute chart we continued, we touched the cloud again and continued to go higher. Great looking signal.
So how did we manage this day trade?
Let’s go to the one minute chart. Once we got the entry on LMT, I managed the trade with 1 minute chart and I tweeted out changes. And so our members know how to manage this trade. Again this is a day trade. It’s a quick impulse move. And I just want to take the profits really quickly. So the first option, we adjust the stop to 310.27 as you can see where my cursor is here on the Twitter feed. So 310 27 is here. So I locked in 50 percent profit x risk.
Now what happened was we got this big move up and then we gapped up and moved even higher above the hundred percent times risk. So the first trailing stop locked in 50 percent were now risk free. Then we continued this move higher I’ll just leave this on the chart so we can see. Therefore I adjusted the trailing stop to 310 97.
So what we do now once we’ve gone from green and we’re now getting grey bars on our one minute the volume is starting to drop. Therefore this is indication we need to be really aggressive with our with our management strategy. So then the next candle, as you can see here, I adjusted the stop to 311.42 so we can see 300.42 here. Once we move through the hundred and sixty percent times profit I get this red candle which means we’ve got increased volume to the downside. Therefore this is potential exhaustion on this initial move. So I move my trailing stop to here and it got taken out. We took 160 percent profit times risk on that trade in less than 10 minutes. And you can see then we go back to the five minute chart.
More Signals on LMT
There was then a pullback that tested our cloud. Then we got another signal at three 311.43 with a stop loss 310.47. Again that entry took probably five 10 minutes to get there, but once it triggered again, we go again and we got another entry here to go higher. So we’ve got two or three more opportunities during that day to trade that one stock with our black box indicator suite.
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