15/10/14 – My Trailing Time stop was taken during yesterday’s session on this TRW Automotive stock trade, giving a 0.4% profit om my trading account balance. Although this stock seems to holding well against the very negative markets it is a good time to get out to free up margin for other potential trades. Together with the one scalp on this trade further down the trade diary, I made a 2% profit on this original setup. Chart as Below.
09/10/14 – With positive price action in yesterday’s session and the success of the scalping trade I have decided to be more aggressive with the Trailing Time Stop adjustment for this trade on the TRW Automotive stock. Trailing Time Stop adjusted to 101.33, which is still below the lows of the last 3 days which have been very negative in the markets. Chart as Below.
09/10/14 – I decided to conduct my live trials with my evolving scalping strategy on 5 minutes charts, on trades that are currently open. One of the main criteria for scalping is to understand the overall direction that the stock price is going and that is done by me actually being in a certain trade and trading with the overall trend. The next criteria is to look for strong setups for potential breakouts on the 5 minute charts for these currently open trades to scalp a trade within the main trade. In this case on the TRW Automotive Stock, I was witnessing very strong contraction period yesterday with a tight trend line resistance (top of triangle) and an equally strong Trend Line support (bottom line of triangle). This is classic setup for a potential Break out to the Bullish side. I decided to place a conservative entry @ 101.80, which was way above the Trend line resistance level and above the highs of 5 bars out the last 20 that found resistance just below this level. Stop Loss was tight @101.66, just below the Wave C low. As this is a version of scalping I wanted to be strict on a quick movement and take my minimum 1.6% profit and so set my Take profit Limit order @ 102.04. The trade triggered with a strong movement at 13:45 and took out the Take profit Limit order at 14:10, giving a quick 1.6% profit on my trading account balance on this trade within a trade. I will continue to look for these setups on current and future open trades as a turbo boost for potential profits or indeed as a hedging mechanism for potential 1% losses. I have included this in the trade diary as it is trade that I carried out and is a reflection of my trading activities and I want to capture all the Good, Bad and UGLY (HOG-NYSE) in my diary to learn from. I have also adjusted the Trailing Time stop on the main trade and discuss that above. Chart as Below
25/09/14 – This TRW Automotive stock price has been in what many traders would call a Bullish flag formation and has pulled back to the Fib 0.618 retracement of the Flag pole (large bullish green bar). The majority of Bullish Flag formations pop out to the upside when they have pulled back steadily 50% of the length of the pole (bar), which in this case has been broken. It is also worth noting that the price has broken the 6/4 MA low line (Red MA line). This trade has also been on for 16 bars (days) and so inline with my trade management strategy I need to consider a Time stop strategy as the price hasn’t reached any way near the 50% to target zone line. An observation to help with the initial placement of a Trailing time Stop is that the price has been above the 50 Day Moving Average (Yellow MA line) since it triggered and also above it for the majority of the Wave 3, the price level for this currently is 100.94 and so if it does break this line then this pull back could be more severe. I have placed a trailing Stop stop @ 100.82 which locks in 0.3% profit on my trading account balance and makes this a Risk Free trade. This point is 12 pennies below the 50 Day MA and still allows for the trade to pop out of this Bullish flag formation if it is not too late. It is worth noting that the previous Bullish flag formation during this wave 5 movement did not close below the 61.8% retracement of its flag pole length.
03/09/14 – After a very strong session yesterday for this potential Long trade on the TRW Automotive stock, the trade has triggered during the first 15 minutes of today’s session. With the 6/4 MA High line being crossed before entry there are now 8/9 of my trading indicators in the green upon the trigger of this trade on the TRW automotive stock. The main target I have for this trade for the remainder of this week is to maintain its momentum of higher highs and higher lows going into the weekend to secure this open. Chart as Below for this TRW automotive Long trade.
28/08/14 – The Wave 4 pull back on this TRW Automotive stock has been simple compared to the complex Wave 2 which is a strong Elliott Wave Theory observation. Furthermore and a very strong indicator, the Wave 4 extreme seemed to have bottomed out between the Fibonacci retracement 0.25 and 0.382 lines taken between Wave 2 and Wave 3. Currently there are 7/9 of my trade indicators in the green for this potential Long trade on the TRW Automotive stock, which is setting up well. There maybe potential for the Wave 4 to pull back more towards the TJ’s Ellipse’ which haven’t been taken out yet, but not all of my “with trend” trades take out the TJ’s Ellipse. With this in mind though, I have decided on a conservative entry into this potential trade which has been helped by the fact that the Risk to Reward ratio is approx 1:2.5 with this setup. The entry point is above the highs of the last 9 bars (days), out of the Trend Channel for today’s bar position (blue vertical line) and above the 6/4 MA High line which will give 8/9 indicators in the green upon entry. Stop Buy order @ 99.30 with the Stop Loss @ 94.24 and the initial Take profit Limit Order @ 112.60 Charts as below