11/09/14 – I decided to time stop this trade on the Salesforce Stock just before the end of the session to take 1.05% profit on my trading account balance, The Chart for this is the second chart below. In addition to the time stop window, I had other factors affecting my decision, one of which was the imminent failure of the SBUX-NASDAQ trade, which in fact did take out its stop loss just before the close of the session. The second factor was the completion of a Harmonic pattern within this complex Wave 5 movement similar to the GOOGL-NASDAQ where I was a little too conservative with the Trailing Time Stop. The Chart below shows some strong Harmonic observations, the Fib retracement between the Wave 3 high and the Wave 4 low, shows the correction pivot B (in yellow) at the Fib 0.618 line and the Fib Extension between Correction points B & C sees the price at the Fib 1.27 target line for the D pivot. I will be considering this observation in my time stop strategy from now on when these corrective/complex Wave 5 movements occur and I have been in the trade for more than 13 bars without getting 50% to the target zone. Chart as below for this observation with the other tech indicators stripped out.
05/09/14 – This week has seen a slight improvement from the close of last for the salesforce stock price, closing on a relatively positive note. I have adjusted the Trailing Time Stop aggressively to 58.63, just below the low of this week which was 58.75. Another week has passed and this trade doesn’t seem to have the momentum yet so I want to give it a chance but at the same time protect as much profit as I can. Some would question this aggressive time stop strategy which only gives an extra 0.15% profit on my trading account balance. However I know from experience that I may do this, on average, to around 20 of my profitable trades each year. This adds up to an extra 3% a year profit a year, which is more than you would achieve in a so called high interest account in a bank over the same time period! This new Trailing Time Stop level locks in 0.65% profit on my trading account balance. Chart as Below.
02/09/14 -This trade on the salesforce stock has been on for 15 bars (weeks) and has not reached the 50% to target line. As I have mentioned on other trades, an average Wave 5 movement takes around 20 bars. If the movement isn’t even near half way to the target Wave 5 price at around the 13/15 bar point in the trade, then I must consider a time stop. In this case I have decided to give the trade some space to work whilst still now adopting a Trailing Time Stop and thus making this trade a “Risk Free Trade”. So I have placed the Trailing Time Stop @ 57.65 which is below the low of last weeks bar and locks in 0.5% profit on my trading account balance. I have been quite aggressive with the placement of my Trailing Time stop on this salesforce stock trade as last weeks bar formed a Doji, which indicates indecision in the market as to where this price is going. A fine balancing act for this placement to lock in as much profit as possible whilst also giving the trade space to work. Chart as Below.
22/05/14 – This salesforce stock Long trade trade tip toe triggered today by just beating the high of last weeks bar. With this trade I would like to see the week (bar) close near the entry point and positively above the close of last weeks bar. As Below
13/05/14 – So far this week the price for this potential trade on the salesforce stock has had strong positive movement and there still 7/9 indicators in the green. I have adjusted the BUY order entry level to 54.50 which is a more aggressive entry out of the Trend Channel but increases the Risk to Reward Ratio to approx 1:2.5, giving better potential profit. Stop Loss remains the same @ 47.90. As below
04/05/14 – Last week saw the salesforce stock price drop from the open and form a new W4 Low However by the end of the week the price pulled back to close near the open price, giving the signal that the sellers lost the battle last week and their seems to be no strength in a further negative price movement. I have adjusted the BUY order for next weeks bar position (blue vertical line) to an aggressive entry out of the Trend Channel @ 55.85. Also to compensate for the new W4 Low, I have adjusted the Stop Loss to 47.90, which still gives a Risk to Reward ratio above 1:1.6 with the Take Profit limit Order still @ 70.00, As Below
26/04/14 – Another potential trade who’s price found resistance at it respective Fib 0.382 line taken between W2 and W3. Again a conservative entry is needed for this potential trade on the salesforce stock out of the Trend Channel and above the Fib 0.25 line. BUY order on a Sept contract @ 7.82 with a Stop Loss @ 52.21 and a Take Profit Limit Order @ 70.00. The price has closed low for the weekly bar, which may indicate further downward movement next week. I will keep an eye on this and adjust my order if necessary next weekend, if the current indicators are still in the green. As below