ZEN Stocks Trading Journal for Massive 5th Wave Trade

ZEN Stocks Trading Journal

This stocks trading journal is a review of a Long 5th wave trade on ZEN. Before markets opened, on 31 January 2019, we posted a video for a potential Long Swing Trade for $ZEN. The original Signals Video can be viewed  >>>HERE<<<   . The Signal came from our Black Box Breakout Indicator for ZEN on the 60 minute time-frame. We also had a deep but still valid wave 4 pull back on our Elliott Wave Indicator Suite.

In the original chart screenshot below we can see that ZEN had found support in our automated probability pullback Red zone on its wave 4. This indicates an 75% 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. 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. In this case we used the notion of a 5th wave move alongside the signal from our BlackBox Breakout Indicator.

The original chart shown below shows the setup with a Long entry price of $67.02 with Stop at $64.18.  Our automated 5th Wave Target zone in Blue was around the $81 but the recent wave 3 was an initial target. Therefore giving a Risk to Reward of 1:2.

Below this chart is our commentary on how the trade went and trade management decisions.

(Click on Chart to open full size in a new window)

ZEN Stocks Trading Journal – What Happened Next

Price gapped up just below the long entry on the 31st January and then moved through the entry price. So our trade was triggered within the first hour as the price moved through our entry order.  There was modest movement in the price over the next 3 days of swinging this trade.  Earnings was after the Bell on the 5th February, so we took half of our position off with profit and let the rest ride with earnings. ZEN had great earnings data that night and gapped up massively in post market trading. During the Pre-Market stocks trading session the price moved up further.  It was decided to close the rest of the position just after the open at the 350% profit x Risk line as per the chart below.

This was the second earnings play with this strategy in as many weeks from one of our free daily stocks signals videos.  The first being Facebook and you can read trading journal HERE.

(Click on Chart to open full size in a new window)