19/03/15 – CRZO NASDAQ – A new wave 4 low was formed in yesterdays session before the FOMC led recovery for the price. However the PTI has dropped below 35 indicating that the price action in the wave 4 profit taking pull back is too severe compared with the price action in the wave 3 Bullish move and could indicate a Bearish trend is forming. This is now a low probability trade and therefore I have cancelled my trade order and put this one to bed. There is no point in trying to hard to make a trade work for you, especially when you have over 15 open trades already! Chart as Below
16/03/15 – CRZO NASDAQ – A new Wave 4 low was formed during Friday’s session but the market did reject this price and it closed very near the open price to form a Doji. 7/9 of my trade setup indicators remain in the green and I have adjusted the order to compensate for this new Wave 4 low and the 6/4 MA high line for toady’s bar position. Stop Buy order now @ 48.71 which is above the 6/4 MA High for today’s bar position and the high of Thursday. Stop Loss @ 45.58 and the initial take profit Limit order is now @ 55.50 giving a Risk to Reward Profile of 1:2. Chart as below showing the adjustments to this order for CRZO Nasdaq.
13/03/15 – I have been looking at this stock all week and finally it seems to have found support at the Fibonacci 0.5 Retracement level taken between Wave 2 and Wave 3 extremes. With 7/9 of my trade setup indicators in the green, this potential long trade on CRZO Nasdaq is looking strong. It is also worth noting that the 50 Day Moving Average (yellow MA line) was tested and acted as support at the wave 4 extreme. The price did break out of the Trend Channel during yesterday’s session but then closed below the daily open back inside the Trend Channel. I have decided on a relatively conservative entry strategy for this potential long position which is way out of the Trend Channel and some distance above the 6/4 MA high line for today’s bar position. This entry strategy will ensure 8/9 of my indicators in the green should the trade trigger. Stop Buy Order @ 49.21 with the Stop Loss @ 45.88 and the initial Take Profit Limit Order @ 55.20 giving a Risk to Reward Profile over my minimum required 1:1.6. Charts as Below for the setup of this potential long position on CRZO Nasdaq.