Stocks Trading Journal for WYNN Short Swing Trade
Stocks Trading Journal for WYNN
This stocks trading journal is a review of a recently closed Short Swing Trade on WYNN. On the 8th August 2018, before the markets opened, we posted a video in our Signals membership for a potential Short Swing Trade for WYNN 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 time frame for $WYNN. The original video can be viewed >>>HERE<<< . During the trading session on the 8th August, the WYNN Stock produced a slightly new Wave 4 high, so the stop loss for the order had to be adjusted to 157.02, to compensate for this new W4 high. The Short Swing trade on WYNN did eventually trigger on the 10th August through our original entry price stated on the video.
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 final 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 with a Short entry price of $150.87 with Stop above the Wave 4 low at $154.68. Our automated 5th Wave Target zone in Blue was around the $144 price for this Short trade, giving a 1:2 Risk to Reward.
Below this chart is commentary on how the trade went and 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)
WYNN Stocks Trading Journal – What Happened Next
After the Stop for the order was adjusted to compensate for the slightly new Wave 4 high posted on the 8th August, the price started to move down away from the Wave 4 resistance level on the 9th August. On the 10th August, the price gaped down to just above our original entry price and took us into the trade with good momentum during the first hour of the trading session. Our original target zone of $144 was reached on the 14th August whilst forming a Bearish pennant, indicating further downward movement was likely, so the trade was carried over.
A trailing stop placed just above $148 was placed for the next day’s session to protect profits and make this short swing trade on WYNN, risk free. Another gap down on the 15th August, in line with the markets, gave us a move down below $139 and our software re-printed the move as a Wave 3 as per the chart below. Many new users ask how we can trade the Wave 3 and this is a prime example of getting in a high momentum 5th wave move that just keeps going and turns into a longer wave 3.
At this stage Profit was taken on the 15th August giving a 2% profit on the trading account balance.
The chart below shows the exit for this Short swing trade after 4 days using our Elliott Wave indicator suite. Moving forward now we need to keep an eye on a potential 4th wave pull back against the main Bearish Trend. Once this occurs and resistance is found, we look for another Short Swing trade entry on WYNN. (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.