27/09/14 – Last weeks price action for this ADT Stock resulted in a lower movement and grey bar being formed on this weekly chart. Again this potential trade is not plain sailing and I have cancelled the current Stop Buy order and will keep a close eye on this over the coming weeks for another potential entry. Chart as Below
20/09/14 – Another first Blue XTL Breakout bar formed on this Weekly Chart for the ADT Stock. I have therefore re-calculated the levels and put the following order back on for this potential trade. Stop Buy order @ 38.13 with the Stop Loss @ 35.90 and the initial take profit Limit Order @ 50.00. With this new combined strategy I feel this may be a “on the bus – off the bus” situation as far as orders. Chart as below for this new setup on this potential Long trade for the ADT Stock.
14/09/14 – There was major indecision in the markets for this ADT Stock which is highlighted on the Weekly chart below showing both a a Doji being formed and a that same Doji Weekly bar turning grey. I have decided to cancel the Stop Buy order for now whilst the market decides what it wants to do and I get another blue bar form if e get some Bullish momentum. Chart as Below.
06/09/14 – As part of the continual development of my trading strategies I am putting this trade together on the ADT Stock as an XTL breakout strategy on a Weekly chart, something I have not trialed so far. I will be using my main “with trend” strategy indicators and observations combined with XTL breakout rules as a base for this trade. There are observations and charts on Monthly and Daily time frames discussing the evidence gathering for this potential Long Trade on the ADT Stock on a Weekly Chart. This statement will remain at the top of this diary and hopefully as the trade progresses the top post below this paragraph will be the latest update. As I have had a great quarter so far and the potential Risk to reward on this trade is at 1:6, I m going to trade this trial trade on the ADT Stock.
06/09/14 – ADT Stock – Weekly Chart Setup – This overall Bearish trend on the Weekly chart represents the Wave 4 pull back on the Monthly Chart mentioned below. The first XTL Blue Breakout bar has formed on this weekly chart and it meets the main requirement of being smaller or average to the preceding 20 bars. All three of the TJ’s Ellipse have been broken through indicating this Wave 4 pull back is failing and breaking the overall Bearish trend on this weekly time frame. It is also important to notice that the Elliott Oscillator is about to break the 140% line and will do so with more Bullish momentum next week, which again indicates this wave 4 is about to fail. Also the Fib 0.618 line taken between Wave 2 and Wave 3 is looming, which again is a failure for this Wave 4 on the Weekly time frame. The 50 Day Moving Average (Yellow MA line) has also been crossed and impotently the price has opened and closed above this level for several bars. There are two price targets included on the exploded view , where the top zone at 50.00 is the main target on this Weekly time frame and gives a Risk to Reward Ratio of 1:6. The the zone at 44.00 is taken from the Wave 2 pivot high on the Daily Time frame and will act as resistance but still sits above a Risk to Reward ratio of 1:3. Combining the observations from the other two time frames mentioned below, the observations from this Weekly time frame and XTL setup on this Weekly time frame, I have decided to put a Stop Buy order on for this potential Long trade on the ADT Stock. Stop Buy order @ 37.88 with the Stop Loss @ 36.08 and initial Take profit Limit Order @ 50.00. Charts for this ADT Stock Setup on the Weekly time frame as below.
06/09/14 – ADT Stock – Daily Chart – This chart is a reflection of the Bearish Wave 4 pull back from the Monthly chart. Looking at this chart in respect of the Bearish trend, I can see that the Wave 4 pull back rules for this Daily chart to return to its Bearish trend have been broken. Namely the price has gone beyond and closed above the Fibonacci 0.618 line taken between Wave 2 to and Wave 3. Also a False Bar stochastic has formed indicating now that a strong Bullish trend is present on this time frame. I have included the entry and stop loss points on this chart taken from the weekly chart setup and one important point is the entry point is above the low of the Daily bar before the gap down, which then closes that gap. As most analysts say a gap will always be closed!. The Daily Chart for this ADT Stock trade as Below.
06/09/14 – ADT Stock – Monthly Chart – The broad observations for this chart show a strong Bullish trend since the ADT Stock was listed in 1991 until a Wave 3 high was formed in March 2013 at which time the market has been taking profit. The ADT Stock has been on a Wave 4 pull back since then and found an extreme in March 2014 and since then has been breaking through to return to the main Bullish Trend with a first Blue XTL breakout bar forming on the August bar, indicating Bullish momentum on this Monthly time frame. The False Bar Stochastic (yellow bar at the top of the Stochastic chart) also indicates a very strong overall Bullish trend to which the price is trying to return to. The entry and stop loss points for the trade setup have been included on this Monthly chart and clearly shows the entry point is above the high of the Monthly Bar of August. Monthly Chart for this ADT Stock as below.