04/09/14 – Another potential SHORT trade setting up, but this time on a LSE Stock, HAYS PLC. There are 7/9 of my trading indicators in the green for this potential Short trade with the wave 4 pull back just inside the parameters of the Elliot wave RULES . This is far from an easy trade setup as far as the entry point is concerned as today’s bar did break out of the Trend Channel but then closed back up at the open price forming a Doji inside the Trend Channel. This indicated indecision in the market for today’s session, but importantly the bar formed a lower low and a lower high continuing the momentum from the Wave 4 pull back. As this Short trade is against the major market direction and similar to the test Short trade setup with EDU-NYSE , I want to be conservative with my entry to ensure the price action is moving in the direction of my trade setup. So the conservative entry point for this potential LSE Stock Short trade is below the 6/4 MA Low line (red MA line), which will give 8/9 of my indicators in the green on trigger and also below the lows of the previous 7 bars (trading days) giving a Stop SELL order @ 128.60. The Stop loss is above the Wave 4 pull back extreme and is set @ 137.60 with the initial Take profit Limit Order @ 101.00 which is just above, what is an emotional support level for traders at the 100.00 price. The Risk to Reward ratio for this potential Short trade on the LSE Stock is 1:3. Charts as Below for the setup.
09/09/14 – LSE Stock – The Sell Order on this Short trade triggered during today’s session and importantly the price closed below the open price and near the day’s low. This is the first of four potential Short trades orders to trigger in what has been a negative day in all markets today. This was a relatively High volume bearish movement today, which gives me confidence that the Bearish momentum on this LSE stock is building. A long way to go on this Short trade with the remainder of this week critical to its success with lower lows and lower highs needed. Chart as Below.
26/09/14 – LSE Stock – This Short trade has made good progress over the 12 trading days it has been open. Even though it didn’t quite reach the 50% to target zone line today I have decided to place a trailing stop which now makes this a “Risk free” trade. The price did approach the 50% line today, which is also around the Support level from the previous Wave 3. Already the price has broken through a support level taken from the pivot B on the Wave 3, which is now a Resistance level so I have decided to put my trailing stop above this level for now. The trailing Stop is placed @ 126.38 which is also above the high of the 22 Sept (post Scottish referendum upset to markets) and importantly slightly higher than the low of that pivot B on the Wave 3. Even though the price closed on a slight pull back up today, the bar still has kept the Bearish momentum trend with lower highs and lower lows. Chart s Below for this Trailing Stop placement of this LSE Stock Hays PLC.
30/09/14 – LSE Stock – A good Bearish session for this stock today has closed very near the low of the day, with average Daily volume. This trade has now been on for 15 bars (days) and not quite reached the 50% to target line even though it had a good go at it last Friday. At this stage I need to be a little mind full of this and adjust my Trailing Stop a little more aggressively too lock in more profits on this LSE Stock. I have therefore adjusted the Trailing Stop to 121.87 which is above the highs of the last 5 bars and just above the 6/4 MA Low for tomorrows bars position (blue vertical line). This now locks in 0.75% profit on my trading account balance moving into next month and the new quarter. Chart as Below.
01/10/14 – LSE Stock – A small increase in volume in today’s session pushed the price down to make a new low (only just) for this current Bearish Wave 5 movement. We have seen lower lows and lower highs for the 3 sessions this week with increased volume each day, so we could see this pushing through the support level at 114.00 , however I must also consider my time stop strategy as well as the possibility that this support level will hold. I have decided on a more aggressive Trailing Time stop now at 119.62 which is just above the high of Monday’s session and level with the 6/4 MA Low line for tomorrows bar position. If the momentum is with this trade then it should not test my stop, but if it does I have locked in 1% profit on my trading account balance for this LSE Stock Short trade. Chart as Below.
03/10/14 -LSE Stock – HAYS PLC – The price gapped up today for this trade but then after an initial rise it fell and closed near the low of the day with average volume. The run of lower lows and lower highs this week has been broken which could see an end to this Bearish trend that did make a new Wave 5 low yesterday. However during this 5th wave this one day attempt at a pull back has happened before but then the next session the bearish trend was resumed. With all of this in mind I have adjusted the Trailing Time Stop aggressively to 117.82, which is just above today’s high as if this is broken it has then indeed broken this current bearish movement. This now locks in 1.2% profit on my trading account balance for this trade. Chart as Below
06/10/14 – LSE Stock – My Trailing Time Stop has been taken out within 5 minutes of the open of the session, giving a 1.2% profit on my trading account balance. The Support level at the Wave 3 low was indeed too strong at this moment in time and the price may recover before another push, however I don’t want to be along for that ride and feel totally justified in placing my aggressive Trailing Time Stop. At the time of writing this update I have had 3 of the 4 Short trades closed with a NET 2% profit on my trading account balance, so even if the remaining open Short trade goes against me I will still be in profit for these short trades. This was a toe dipping exercise with strong setups on short trades to try and catch the potential turn of the markets to the Bear side and although in NET profit, it still shows the markets are undecided. Chart as Below.