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With this video am introducing a life swing trading example using a simulated account with the stock GCI over a future period of time. Idea is that you follow the trade evolution and that we systematically learn applying all technical analysis techniques, hopefully with success.
GCI or Gannett Co., Inc. is an international media and marketing solutions company. We will swing trade this stock in a series of videos applying all technical analysis techniques explained in the previous videos.
We will use a daily, weekly and eventually an hourly chart. On these charts we will use a number of indications.
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This is the text:
Sylvain Vervoort with technical analysis part 34. With this part I am introducing a life swing trading example using the stock GCI over a future period of time using a simulated account. Idea is that you follow the trade evolution and that we systematically learn applying all technical analysis techniques, hopefully with success. Pay a visit to my website at stocata dot org and buy my book “Capturing Profit with Technical Analysis”.
GCI or Gannett Co., Inc. is an international media and marketing solutions company. We will swing trade this stock in a series of videos applying all technical analysis techniques explained in the previous videos. We will use a daily, weekly and eventually an hourly chart. On these charts we will use a number of indications. The first thing is of course the price chart and generally we will use a candlestick chart. Here we will mainly look for candlestick reversal patterns. Basically we will also use Bollinger bands to look at price volatility. With trending prices, the bands will be wider as a result of the higher volatility in price, moving farther away from the mean, whereas during consolidation periods, bands will be narrower as a result of smaller price moves closer to the mean.
On the price chart we also use three simple moving averages. The blue 50, the 100 red dashed and the red 200 bars simple moving average. We will use these averages looking for support and resistance. In the uptrend here, bouncing up on the 100-bars average and finding resistance against the 50-bars average.
On the level of price we will of course use support lines, resistance lines and trend lines and eventually trend channels.
We will maintain an Elliott wave count. To facilitate the count I will be using my Elliott wave count indicator. This indicator is available at stocata.org/metastock/formulas.html.
Point of view risk management, we will use an initial stop and we will keep an eye on two trailing stops. My modified ATR trailing stop and my TRENDS trailing stop. Depending on the ATR multiplication factor, we can use the ATR trailing stop as a medium term trailing stop, while TRENDS will be used mainly as a trailing stop for short term swing trades. The formulas for these trailing stops are available at stocata.org/metastock/formulas.html
To find support and resistance levels in a price correction phase, we will make use of Fibonacci retracement levels.
We will of course also use Fibonacci price projections to find future price targets. We will not only use the standard price projection but also the historical Fibonacci projection that I introduced here.
The use of the Andrews pitchfork will help us to estimate the future price inclination and the median line price target. Together with Fibonacci targets and trend lines, the Andrews pitchfork will also help us to estimate when a future price target may be reached.
We will use a weekly chart to have a better long term view and to have a better look at the long term Elliott wave count. As well as finding main support and resistance levels.
Occasionally we may use an hourly chart. This can help us to find earlier buying or selling points mostly applying a short term Elliott wave count. On each of the price charts, daily, weekly and hourly we are using all the same technical tools as we have shown on the daily chart.
The second part of the price chart is a chart with 4 sub-windows holding 8 indicators. These indicators will show overbought or oversold levels, divergences and showing that there is a better chance for an up move or a down move. The first upper window holds the price bars as a reference for this chart and a 50-period stochastic with a 3-period slowing oscillator. High and low levels in this oscillator will rather follow the medium term price moves. The 14-periods ARSI indicator in the same sub-window is used as a fast short term indicator that will show many useful divergences. It can be found at stocata.org/metastock/formulas.html.
The third sub-window has volume bars that will show if a price move is yes or no supported by volume. It also holds my SVAPO indicator. This is a smooth fast indicator that takes into account the volume. You can find this indicator at stocata.org/metastock/formulas.html.
In the fourth sub-window we have a Bollinger bands %b indicator based on the average heikin ashi closing price. This is a fast leading, volatility based indicator, most of the time showing very early divergences. This indicator will become available first in an article to be published in Stocks & Commodities magazine. The inverse Fisher transform RSI indicator switches very fast from one side to the other, creating clear buy and sell points. Again this indicator will become available first in an article to be published in Stocks & Commodities magazine.
We skipped the second sub-window. In this window we have two more indicators, the SVE_RSI_Swing, giving fast swings based on the RSI indicator. And the SVE_TrendBreak indicator that signals short term trend breaks. For the time being these two indicators are not publically available.
This is the end of the introduction of a life swing trading example using the stock GCI over a future period of time. Idea is that you follow the trade evolution and that we systematically learn applying all technical analysis techniques, hopefully with success. Tell your friends about these videos and while visiting my website order my book “Capturing Profit with Technical Analysis”. See you in the next video for the start of swing trading GCI.
Risk Disclosure: Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. no representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results. There are numerous other factors related to the markets in general or to the implementation of any specific trading program which cannot be fully accounted for in the preparation of hypothetical performance results and all which can adversely affect trading results.
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