Stocks Swing Trading Journal for Long 5th Wave Trade on NE
Stocks Swing Trading Journal for NE
This stocks swing trading journal is a review of a recently closed Long 5th Wave Swing Trade on NE. Before the markets opened, on the 28th September 2018, we posted a video in our Signals membership. A Stocks Signals video a potential Long Swing Trade for NE on the 60 minute time frame. The video had a quick analysis, entry, Stop Loss and Target price for this potential 5th wave move for $NE. The original video can be viewed >>>HERE<<< . Trade triggered as per our setup in the 2nd hour of the trading session on the 28th September. It Hit our Target Zone 9th 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. Which indicates 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 $7.02 with Stop below the Wave 4 low at $6.71. Our automated 5th Wave Target zone in Blue was around the $7.40. Therefore giving a Risk to Reward, over 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)
NE Stocks Swing Trading Journal – What Happened Next
As with most stocks at this low price, the open was pretty sedate, but in the second hour we did get a strong Bullish move to take us into the trade. The price action for the remainder of the session was flat forming a Bullish pennant. We had false breakout dots form in the overbought zone on the 28th September, indicating a strong Bullish move. (False breakout Stochastic is part of our Elliott Wave Indicator Suite).
Managing the trade wasn’t easy as this was a cheap stock, correlated loosely with Oil. With this type of trade, patience is key and your looking for higher support levels on small pull backs, as can be seen on the chart below with Cyan dots. As you can see the bias was bullish with higher support levels, but the price was struggling to break to the upside, out of the range that was forming. On 9th October the price broke out the range and hit the target zone, so we closed the trade with a Profit of 1.5% 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 in 8 trading days, 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.