Breakout Trade LOCK-NYSE

20/11/14 – My Stop Loss for this Breakout Trade was taken out yesterday giving a 1% loss on my trading account balance. This trial on a development of my strategies did not go so well and it sems the breaking of the Wav4 rule was just too much.  I will not give up on this and will keep an eye on this stock to monitor its price action over the next month to see what if indeed the Wave 4 rule is eventually broken and what I can learn from the price action for future trades.  Charts as Below.

breakout trade

15/11/14 – My Stop Buy order for this breakout trade triggered on Thursday last week and has then closed the weekly bar near the weekly high, at the trade entry level and with higher than average weekly volume. This strong close for the week above the Fib 0.618 retracement is a good sign the Wave 4 setup is failing but confirmation will come when the price opens and closes above that level and ultimately moves past the previous Wave 1 low at 18.40.  So this breakout trade is off to a good start but there is still plenty of work to do to confirm the Bullish move back to the 23.00 price level.  The next two weeks are critical for this trade.  Chart as Below.

breakout trade

10/11/14 – This potential XTL Breakout trade is setting up similarly to my first attempt at this type of trade on ADT-NYSE , which didn’t trigger.  For this LOCK-NYSE Weekly chart a Blue XTL bar has formed for last week’s bar which is shorter or average tot he preceding 20 bars (weeks), indicating a potential breakout to the up side.  The current Wave 4 pull back is about to fail if the price opens and closes above the Fibonacci 0.618 level taken between Wave 2 and Wave 3.  This week could also see the Wave 4 pull back Oscillator break the 140% level, which would conform the failure of the Wave 4.  Further observations on the Daily Chart (bottom chart) shows, again, the Wave 4 failing, a Bullish Pennant forming and a Bullish Trend indicated by the Yellow False bar at the top of the Stochastic Sub Chart.  I have opted for my simple XTL breakout trade setup with the Entry point at 50% of the length of the blue bar and projected up from that bar’s high.  this entry point is also above the Fib 0.618 level which will make the Wave 4 fail.  Stop Buy Order @ 17.67.  The Stop Loss is similarly 50% of the length of the blue bar but projected down from the low of that bar and placed @ 16.24. The initial Take Profit Limit Order @ 23.00, which is the previous and all time high for this stock and gives a Risk to reward profile of over 1:3.  This week is critical for this potential breakout trade and I need to see a continuation blue bar for the trade setup to remain valid.  Charts as below for the setup of this potential Breakout Trade on LOCK-NYSE.

breakout trade LOCK#2 daily

 

paul.bratby@hotmail.com'

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