Stocks Swing Trading Journal for AMT
This stocks swing trading journal is a review of a recently closed Long 5th Wave Swing Trade on AMT. Before the markets opened, 29th October 2018, we posted a video in our Signals membership for a potential Long Swing Trade for AMT. The video had a quick analysis, entry, Stop Loss and Target price for this potential 5th wave move on the Daily time-frame. The original video can be viewed >>>HERE<<< . Trade triggered as per our setup in the 1st hour of the trading session on the 29th October. Consequently Smashed through our Target Zone 30th October.
Our Stocks swing trading 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 support in the Green Pullback zone. Therefore indicating an 85% 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 $151.45 with Stop below the Wave 4 low at $148.66. Our automated 5th Wave Target zone in Blue was around the $156 price for this potential Long Swing trade. Therefore giving a Risk to Reward of 1:1.6
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)
AMT Stocks Swing Trading Journal – What Happened Next
We had a strong entry into the trade during the first hour of the trading session on the 29th October. Then we had sideways price action for the remainder of the session forming a bullish flag. In the first hour of the trading session on the 30th October, we had a gap up, move down that didn’t take out stop out, then a massive move that smashed through our 5th wave target zone. As you can see by the chart below our Elliott wave indicator suite has re-printed the Elliott wave count and showing we are on a Wave 3. A great deal of traders ask us, “How can we trade the 3rd wave”. And this is how….. When a 5th wave target is smashed through with momentum it turns into a 3rd wave and the profits increase dramatically!
There was no need to manage this trade. We simply took profits on the 30th October when the price became range bound again at profit of 3.5% x risk. A massive winner. But look at the Bullish flag formed again!! We will be looking for a breakout trade on the 31st as a Day Trade in our Stocks Day Trading Service, to compliment this already BIG winner
The Chart below shows our 5th wave Target being smashed through and new Wave 3 formed. This really highlights how powerful our Elliot Wave indicator suite can be. Remember, the original signals video can be viewed >>>HERE<<< . (Click on the image to enlarge in another window).