03/10/14 – This EDU Stock Short trade has stopped out giving a 1% loss on my trading account balance. This trade once triggered, never really got going and one observation to learn from here is that the trade took far too long to trigger in the first place from crossing the 6/4 MA low line. In future with conservative entries I need to put a limit on the amount of bars before trigger, especially when the markets are so uncertain in which direction they want to go. Having a conservative entry like this is a double edged sword as on one hand you want to make sure the movement is well on its way with still enough RR and then on the other if it takes too long it may just run out of momentum. There is a call now to say that in fact this has now actually closed the previous gap and formed a complex wave 4 and there is a potential for another Short trade. i will work on this after the weekend as I want to see the price action on Monday first. Chart as Below
16/09/14 – This Short trade on the EDU Stock “Tip Toe Triggered” during yesterdays session hitting a low of just $0.01 below the entry point, then retreating to close at 21.92. This short trade joins the other two open trades HAS-LSE and INFA-NYSE with a potential fourth in HOG-NYSE by the end of the week. The momentum is still with the Bearish movement for this EDU Stock price towards a new Wave 5 Low and would look to see the price close below the entry point in the next couple of sessions. Chart as below
03/09/14 – This potential SHORT trade on the EDU stock is setting up extremely well with 8/9 out of my indicators in the green at the moment. As this Short trade is against the overall market direction I want to be very conservative with my entry point, whilst still allowing for my minimum Risk to Reward ratio. Firstly the entry point is way out of the Trend Channel, below the low of the (iv) pivot and also Below the 6/4 MA Low line (Red MA line) which will then give 9/9 of my indicators in the green, on entry, for this potential Short trade on the EDU Stock. Stop SELL order @ 21.74. The Stop Loss is @ 23.89 which is above the Wave 4 extreme high for this pull back and slightly higher than to low of the Daily Bar before the gap down. The initial Take profit Limit order is at 17.35 which gives a Risk to reward ratio of 1:2 for this potential trade, even with this ultra conservative entry strategy. I have been scanning for shorts over the last week or so and have seen a sharp increase in potential short trades, which also out number potential long trades by 3 to 1. So although cautious at this stage, this potential Short trade on the EDU stock is a high probability toe dipping trade into the potentially turning market. Charts as Below.