Hello everyone, today's trade of the day is Twitter. Anyone wants to guess what the first pattern I noticed! The inverted head and shoulders pattern showed up on the 5 and the 15 minute chart. We have a distinct spinning top forming at the right shoulders low, just before prices started heading up! That distinct spinning top, is a doji on the 10 minute chart. This spinning top formed right on the pivot point level, as well as the doji, which told me that price action is finding support there and will look to head higher. I see railway tracks on the hourly chart, that's just more confirmation of upper direction! As soon as price action peeked its way out of the neckline, that confirmed to me that prices are heading up. I executed a buy trade at $29.09 with 2000 shares. Price went up just a little and then started to head down, I knew that price is testing the neckline and will look to head higher right afterwards. Price tested the neckline, found support there in the form of railway tracks, and started to head higher. I executed another buy trade with 1000 shares. Price went up to the next available pivot point level, and that's when I got out of the trade with over $700 profit! See you tomorrow!
Good Morning Folks. Im going to start posting the charts that I'm trading, maybe someone could benefit from the hardcore technical analysis. The stock market is govern by technical analysis, although other markets react more strongly to tech analysis, especially the foreign exchange. I find that the stock market gives more meaning and more legitimacy to the technical analysis side of trading! So lets jump in to the trade of the day! Remember folks, the less you trade the more profits you keep. I find the the first morning trade is always the best! So I will stick with and accumulate! So we all know twitter had good earnings and price shot up at the time. This is the reason I'm sticking with twitter, for now at least, and because twitter is talking, about where its going that is! I took a look at the daily chart, and seen a perfect railway tracks. Railway tracks means a turn around of prices. Price goes down, then realizes it made a mistake, which actually means buyers are taking control, and price started heading up forming the second rail! This made me believe to look for technical's heading higher! Did not find anything technical on the 4 hour chart! Now the hourly chart started talking to me and showing me something. Looks like we have an inverted head and shoulders pattern forming. Remembering that I seen railway tracks on the daily chart, made me believe that this inverted H&S are valid! We have 2 signals now, the railway tracks and the inverted H&S! This is not enough to enter a trade, so I continued looking. Then I drew a trend line and I saw that price action tried to break that trend line twice already, and that if price starts to break that trend line the 3rd time, well 3rd times a chart as they say! Then i drew a neckline, and when price breaks the neck line, that's an opportunity for a trade! So we now have 4 supporting signals for prices heading higher, and were only on the hourly chart. Lets see what we can come up with from the lower time charts! The 30 minute and the 15 minute charts are showing same patterns and formations, which adds power to the buy position! Because 2 time frames are showing the same thing as other time frames, which means they are agreeing with each other! which in turn means price will head in only one direction, and that's not down! We have a double bottom forming on the 15 minute chart, which means price found support with the previous level, and will now look to head higher. We are waiting for prices to break out of the trend line, and breaking the neckline almost at the same time. So we now have 5 signals with the double bottom, and I'm not even counting the same pattern on different time frames, which I should. In reality, we have like 8 signals supporting higher prices! The 5 minute and the 1 minute are almost identical, but on the 1 minute chart we can see more! We have the formation of another inverted H&S pattern, but I did not buy on that. I waited for price to break the 15 minute neckline, and as soon as price action broke out of that neckline, it started to head higher and since I knew what was going to happen, I executed a buy trade @ $30.78 with 3000 shares. I waited for price action to head to the next available resistance area, which was an R1 pivot level. Profit target reached and i got out of the trade @ $31.02 for $720 profit! Like I always say, wait for the security in question to call you in, it will if its going somewhere!
Welcome back to another trading day. It is the same day for me as everyday, in trading that is! I wait for the stock to tell me what its doing, and where its going. Long behold, I seen a break out happening on CNC. On top of the break out, we have a great inverted head and shoulders pattern that confirmed the break out to be valid. We have MACD positive divergence occurring, another signal for higher prices! This was a pure and simple break out pattern, i dint wait for other signals, it was all clear to me what was going on! As soon as price action jumped out of the strong resistance level, I executed a buy trade @ $109.57 with 1000 shares. Mind you all this time I'm watching twitter to say something to me! Stayed in the trade very little cause i seen twitter jumping off. I closed the CNC trade @ $110.14 knowing that it will continue heading higher. Twitter was too strong of a signal, but will discuss this in the next post! Over $500 banked! Here is the outcome of the CNC trade Screenshot of TDAmeritrade in next post
Twitter stock is amazing. We have a very distinct and beutiful inverted head and shoulders pattern. The pattern its self is visually telling! Its a text book H&S pattern. I executed a trade without even waiting for confirmation! Soon after price action reached the neckline and started to penetrate it! After the execution I started to find pattern and formations supporting a move higher. I bought twitter @ $30.81 with 3000 shares! it went as high as $31.22 and then started heading down. When it got to $31.22 i had over $1000 profit and should of got out! I believed in the pattern, so I stayed. I'll tell you, with my many years experience I still get nervous and think that I made a mistake sometimes. So I got out of twitter at $30.91 when I started panicking with $300 profit. I actually forgot myself, from the excitement that stocks go back down and retest the neckline or a trend line, and that's what twitter was doing. I went in to twitter again, buying 3000 shares @ $31.02!
There a big lesson to be learned here, never break your own rules, and today i broke mine because of all excitement. I was up on twitter for over $1000 and decided to stay in and catch some more. I usually never do that but the pattern seemed strong to me! Should of got out with that profit. But since i already banked $570 on CNC and another $300 on twitter i thought I would give it a risk, and broke my own rule! No matter how much your up, or down, if your own rules say get out, then do so accordingly. Took a loss on twitter of over $1000 dollars, but in all actuality only $270 was lost today! Losses happen, its part of trading. You go outside scream your lungs out, and continue like it never happened the next day. That's the only way to survive in day trading! Its a long day for me because I'm usually done trading by 11 or 12. Today it was right up to closing! I got out when price action formed a triangle and bounced down from it, it also used a pivot level as resistance and pushed down! I would of been gone a long time but the profit from CNC and TWTR kept me in! Live to fight another day!
Good Morning, I couldn't write in my journal yesterday, because I was traveling. Yesterday I took a loss on Twitter. Started to see prices were heading higher, breaking the neckline again, but price started heading down after penetrating the neckline! I thought prices would return and i was willing to wait. Prices did not come back and I took a loss of $1300! I did rush into the trade. The point that got me into the trade was thinking price is going up big time because of the visible inverted head and shoulders! As soon as i seen signals coming in for lower prices, i got out of the trade with a loss! My second trade was SNAP. I seen that this stock has been dropping extensively, it was on the news too. I executed a sell trade at $10.96 with 9000 shares, just as price was breaking the low! I did not stay in the trade long. Waited for price to head 10 points down, and got out of the trade @ $10.86 for a profit of $900. That put me in a whole of over $500! Losses are part of trading, will continue tomorrow!
Good Morning Everyone. Today trade was Twitter yet again! Price would once again try to break the original neckline from few days before. Looks like it did break that neckline, and started heading higher! I seen there was another inverted head and shoulders forming on the 1 minute chart. Price action used a pivot point level to boost itself higher. There were multiple trend line breaks confirming a move higher, as well as a double bottom formation! I didn't know weather this will be the big move I was waiting for, but, I knew price will at least break the neckline. I executed a buy trade @ $30.54 with 3000 shares! I waited till price started showing signals for lower prices, and got out of the trade @ $30.90, with just over $1000 profit!
We got Twitter breaking out again, forming a know formation! After price action broke the neckline, price came back down and retested the neckline, it has found support there in the form of a spinning top, which was seen on the 5 and the 15 minute chart. Perfect support with candlestick reversal confirmation, which is a strong signal for higher prices! I could not let my self sit on my hands, even though this was a quick trade! On top of all this, inverted head and shoulders pattern pushed prices higher, and I knew it! Buy trade was executed @ $30.98 with 3000 shares, and got out of the trade @ $31.11 netting additional $400, making today total profit $1470.00
Lots of trading today, seen a lot of opportunities, so I went with it! The first trade was Facebook and I rushed into it! As soon as I realized I made a mistake I got out with a loss of $100 something! Second trade was JD.com. I realized that it will take a while for this trade to work out after I have executed a buy trade, so I made a decision to take a loss and continue trading because there were other stocks that presented opportunities! Took a loss of over $700. Third trade was Twitter and I only had small buying power left, because of JD. So I just executed a buy trade with 1000 shares! Twitter once again went down to retest a previous neck line, found perfect support there in the form of railway tracks and a spining top, on multiple time frames, SO I knew where it was going, and Twitter started to head up! Buy trade executed $31.36 and closed out at $31.62 with $260 profit! Forth trade was Tesla. There was an important trend line break on multiple time frames! There was also a classic MACD positive divergence occurring with the histogram as well, that also told me Tesla will head up. Price action was also breaking the high of the peak, which confirms direction! Executed a buy trade @ $299.20 with 400 shares. Trade was closed at $301.41 with over $800 profit! Fifth trade was BAS. There was a inverted H&S pattern visible from the 1 minute to the 10 minute chart. That told me price should head up for just a little. Since this was a very cheap stock, little amount of movement can mean big profit! This was all happening while price action has just found support at a pivot point level and was bouncing up from it! I executed a buy trade @ $14.10 with 10000 shares, and closed out the trade with just 6 points higher at $14.16, with $600 profit. Sixth trade was BABA. Once again there was a beutiful inverted head and shoulders forming, looked more like a cup and a handle! Looks like price action has already broken the neckline and is loking to head higher! This was happening while price action has found support at a pivot point level and boosted upward! Executed a buy trade @ $194.65 with 500 shares and closed out the trade at $194.91! Good trading day over all, see you tomorrow! $1141.50 made in profits!