image of LEN stock trading journal header told ya so

Stocks Trading Journal for Short on LEN

This stocks trading journal is a review of a recent Short Swing Trade on the LEN Stock. On the 18th April 2018 we posted a video in our Signals membership for a potential Short Swing Trade for $LEN 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 timeframe.  The original video can be viewed  >>>HERE<<<

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 initial resistance in the Green Pullback zone, which indicates an 85% 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 before the trade triggered when the trade was set up before the markets opened on the 19th April 2018.  Short entry price of $56.97 with Stop Loss above the Wave 4 high at $58.52.  Our automated 5th Wave Target level in Blue was around the $55 level for this short trade, giving a 1:1.6 Risk to Reward.

Below this chart is how the trade went and chart showing exit when price hit our automated target zone in just one trading session…

image of LEN Stock swing trade chart with setup

LEN Stock Trading Journal – What Happened Next

Great entry into this short in the first hour of the trading session on the 19th April.  The momentum continued and in the 4th hour of the trading session, the price was through our target zone. During the 5th hour of the trading session the price started to rebound back into target zone, so trade was taken off, giving a 1.6% profit on the trading account balance for this short trade on the LEN Stock.

The chart below shows price hitting the target zone for this typical 5th wave swing trade on a 60 minute timeframe, which usually takes a few days using our Elliott Wave indicator suite.  But in this instance we got it just right with market conditions and target was hit really quickly.  That wasnt the end of this move! The Chart at the very bottom of this post shows an even lower Wave 5 that was formed. This can happen and a warning not to get out too early when using our Elliott Wave Indicator Suite, but rather use a sensible trade manegement strategy  to give trades a chance to smash through target levels

image of LEN Stock trade hitting target

image of LEN Stock chart with 5th wave formed

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.

 

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *