Stocks Swing Trading Journal for NBL
This stocks trading journal is a review of a recently closed Short Swing Trade on NBL . 11 October 2018, before markets open, we posted a video in our Signals membership for potential Short on NBL. The video had a quick analysis, entry, Stop Loss and Target price for this potential 5th wave move Short. This was on the Daily time frame for $NBL. The original video can be viewed >>>HERE<<< . The Target Level for the Trade was smashed through after only 10 Days….
Our TradeTheFifth strategy involves trading the 5th Wave of the Elliott Wave sequence. Above all the 5th wave is the highest probability move in a “with trend” trade. The Wave 4 in this case pulled back and found final resistance in the Red Pullback zone. Which indicates an 75% 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 with a Short entry price of $30.93. With Stop above the Wave 4 low at $32.81. Our automated 5th Wave Target zone in Blue was around the $27.22 price for this Short trade. Therefore giving a 1:2 Risk to Reward.
Below this chart is commentary on how the trade went. With a chart showing exit when price went through our automated target zone and was was re-printed a wave 3. (Click on the image to enlarge in another window)
NBL Stocks Swing Trading Journal – What Happened Next
After the initial entry on Thursday the 11th October. The price closed flat to the entry price and then had a little full back over the next few days. This is sometimes the case when trading the fifth wave, but as normal the pull back was with lowering volume. Momentum with price action and volume really started too build on the 18th October with price heading back down below our original entry. When we get these quick 5th wave moves we must be ready to take profit at target zones quickly as the price tends to bounce of these levels.
So on Wednesday 24th October, the price did smash through our target zone and profit was taken between the 1:2 and 1:2.5 Risk to reward. So for a risk of $1000 this trade would have yielded a $2000+ reward. This quick exit made sense due uncertainty in the markets with mid-term elections, Amazon earnings the next day and so on.
The chart below shows the exit for this Short swing trade after 3 days using our Elliott Wave indicator suite from our Thinkorswim version. This is another great example of how powerful our Elliott Wave Indicator Suite is and how our Stocks Scanner Membership is a very useful tool for our users (Click on the image below to enlarge in another window)