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Stocks Trading Journal for Short on PFF

This Stocks Trading Journal is a review of a recent Short Swing Trade on PFF.  On the 08 Feb 2018 we posted a Video in our Signals Membership for a potential Short Swing Trade on $PFF which had quick analysis, entry price, Stop Loss and Target price for a potential short swing trading on the 60 minute time frame.  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 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 before the trade triggered when the trade was set up before the markets opened on the 8th Feb 2018.  Short entry price of $36.96 with Stop Loss above the Wave 4 high at $37.18.  Our automated 5th Wave Target level in Blue was around the $36.45 level for this short trade, giving a 1:2 Risk to Reward.  Below this chart is how the trade went and chart showing exit through trade management as part of this stocks trading journal.

image of PFF stocks trading journal chart for entry

PFF Stocks Trading Journal – What Happened Next

The short swing trade moved through the entry level during the 2nd hour of the trading session on the 8th February and proceeded to move down and close near the low of the day.  When markets are bearish like this and a short trade closes near the low, there is a high probability that the bearish momentum will continue into the next seesion.  On the 9th February PFF gapped up slightly then sold off heavily in the first hour of the session.  After the first hour a simple trade management strategy for this type of Swing trade is to use trailing stops just above the high of the closing candle.  In the chart below we can see the price got very close to our automated 5th wave target with a small Djoi candle during the 4th hour of the trading session.  This was a sign of exhaustion and sticking to the trade management strategy, mentioned earlier, meant the trailing stop was taken out at $36.60, giving a great 1.6% profit on the account balance, as per the chart below.

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.

image of PFF tradng chart for swing tradng journal

 

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