Stocks Swing Trading Journal for Long 5th Wave Trade on EC
Stocks Swing Trading Journal for EC
This stocks swing trading journal is a review of a recently closed Long 5th Wave Swing Trade on EC. On the 23rd September 2018, we posted a video in our Signals membership for a potential Long Swing Trade for EC 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 Long on the Daily time frame for $EC. The original video can be viewed >>>HERE<<< . Trade triggered as per our setup on 24th September and Hit our Target 28th September. A Monday to Friday Trade….
Our Stocks swing trading 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 final support in the Amber Pullback zone, which indicates an 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. The original chart shown below shows the setup with a Long entry price of $25.45 with Stop below the Wave 4 low at $24.64. Our automated 5th Wave Target zone in Blue was around the $27.30 price for this potential Long Swing trade, giving a Risk to Reward, over 1:2
Below this chart is commentary on how the trade went and chart showing exit when price went through our automated target zone. (Click on the image to enlarge in another window)
EC Stocks Swing Trading Journal – What Happened Next
After a gap up on Monday the 24th September, the price continued to move up through our entry price and the trade was triggered. The price closed near the highs of that first day of the trade and continued to move towards the target throughout the week with great volume. We had false breakout dots form in the overbought zone on the 25th September, indicating a strong Bullish move. (False breakout Stochastic is part of our Elliott Wave Indicator Suite). Managing the trade was relatively simple in this case, as we had strong Bullish momentum from the outset, so after the rejection candle in the fist hour of the 26th September, we placed our trailing stop, just below its low, to protect profits. Then we took profit on Friday as we got into the target zone as didn’t want to carry over the weekend, with a Profit of 2% on the Trading account balance. Showing once again how powerful our Elliott Wave Indicator Suite can be on multiple time frames.
The Chart below shows our 5th wave Target being hit within one week on this swing trade on a 60 minute time frame. This really highlights how accurate our 5th Wave Target Zones can be. 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.