Monday, October 10, 2016

PETX weekly and daily chart



Here is a sample of what I look for in Swing trading. This is PETX, Trend is up then forms a tight bullish triangle. I take the break on the weekly chart above the congestion line and place my stop below the yellow trend line or 20 day moving average on the daily. Target, about a 5-1 ratio is the yellow circle. As you can see it broke above and the sellers knocked it down. Hope to see it break out again and keep moving!! Once I am in the plus Territory I will move up my stop and follow the gains. Can either use the weekly or follow the 20 day daily moving average to trail your stop. Why do I trail my stop....because greed never works and nothing is as demorilzing as getting to 80% of your target and it whip around and drop back to my stop and wipe out all the profit and face a loss.
Left chart is the daily and right chart is the weekly chart.



* You don't have to trade everyday. If the conditions don't feel right or if you're unsure of the current days trading environment then PASS on the trade. Missed money is better than lost money.  Day trading and the stock market is not a "war" that you must win at all cost. Trading should be fun, wait for only the good setups. Follow your rules, stick to your stops, and know that everyday the market presents a new chess board.

2 comments:

Joshua said...

I like that chart. Nice balance formed on the daily. You had a high spread high volume climactic move out of balance, which resulted in a dry up of demand. Now we pushed back to that balance range on decreasing volume. I'd watch that swing high for a test of new demand. If they find it a target of about 11.80s makes sense. Best of luck

How I Day Trade said...

thank you for your feedback

Disclaimer

I DO NOT MAKE RECOMMENDATIONS TO BUY OR SELL SECURITIES - I JUST POST TRADES I MAKE OR FIT THE RULES OF MY TRADING PLAN ON A DAILY BASIS. DO YOUR OWN DUE DILIGENCE - YOU ARE RESPONSIBLE FOR YOUR TRADES, INVESTMENTS, AND DECISIONS! ALL CHARTS COURTESY OF TRADESTATION, SCHWAb & TD AMERITRADE