13/09/14 – This potential Short Trade setup failed during Friday’s session by breaking Elliott wave rules. the Wave 4 pull back made new high which were beyond that allowed in the previous bearish trend. As you can see from them chart below my software has now automatically labelled this new High as a Wave 3 and is now classified to be in a Bullish trend. I expect a false bar stochastic to form at the beginning of the week at the top of the stochastic study that further give weight to a Bullish trend. As these rules have now been broken and some of my indicators, namely PTI and TJ’s Ellipse, are now not in play I have cancelled the order for this potential short trade. Chart As Below.
10/09/14 – A new Wave 4 High was made on this potential short trade in yesterday’s session. The price did then fall back to form a Doji, indicating the markets indecision about the direction of the VRX-NYSE stock price in what was a very negative session for the US markets overall. I have adjusted the Stop Loss to compensate for this new Wave 4 and is now @ 121.69 for the order. The Risk to reward is just at the minimum of 1:1.6 for this potential Short trade with all the original 8/9 indicators in the green. I may look to adjust the entry point up in the next couple of days closer to the 6/4 MA Low line to achieve a better risk to reward, but I just need to see the price action in today’s session first. Chart as Below.
05/09/14 – This potential Short trade on VRX-NYSE is setting very well with 8/9 of my trade setup indicators in the green. The Wave 4 extreme found resistance at the 0.5 Fibonacci retracement taken between Wave 2 & Wave 3 and also a mid term Trend resistance line ( Dark Blue trend line) taken from Wave 2, which took in 2/3 of the major pivots of the Wave 3 movement. Again, like the potential short trade setups for EDU-NYSE and HAS-LSE , I am looking to enter very conservatively into this potential short trade. The entry point I have chosen is way out of the Trend Channel for today’s bar position, below the 6/4 MA Low line and below the lows of the preceding 8 bars (trading days). Stop SELL order @ 114.80. The Stop Loss has been placed just above the Fib 0.5 line @ 121.19. The initial Take profit Limit order is @ 103.00, giving a Risk to Reward Ration just over my minimum 1:1.6. With the 6/4 MA Low line being crossed before this potential short trade is triggered, I will have 9/9 indicators in the green upon entry into the trade. Charts as Below for this potential short trade setup.