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This is the fifth video of the life swing trading example using the stock GCI. Idea is that you follow the trade evolution systematically learning to apply technical analysis techniques.
For trading GCI, we are using a chart template of which the last version is presented HERE. It is possible to be informed immediately when a trade is opened or closed. Click the RSS feed button at the top right of this page and follow the instructions. Otherwise you can also look at this page to find out about the latest actions. Every weekend, there will be a video update like this one commenting the past week using a simulated account and some preview.
We will use a weekly, daily, hourly and 5 minute chart. On these charts we will use a number of indications as shown in the template and as explained in training video 034.
This is not an invitation to trade this stock, information given is to be used for training purposes only. Stocata.org will not accept liability for any loss or damage which may arise directly or indirectly from use of or reliance on this information.
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This is the fifth video of the life swing trading example using the stock GCI. Idea is that you follow the trade evolution systematically learning to apply technical analysis techniques. Receiving live trade signals is possible from an RSS link at stocata.org. Please note, this is not an invitation to trade this stock, information given is to be used for training purposes only. Stocata.org will not accept liability for any loss or damage which may arise directly or indirectly from use of or reliance on this information. Pay a visit to my website at stocata dot org and buy my book “Capturing Profit with Technical Analysis”.
April 12 11:50 EST. It looks like GCI is completing an Elliott ABC correction wave in the 5 minute chart. As you will see in the next chart, price and indicators are showing a positive divergence. At the last bottom there is a confirmed piercing line reversal candlestick pattern. Price is now also breaking the last red downtrend line. We open a long position at $17.63.
Note the positive divergence between the price and all indicators and the indicators moving up from below.
We have a possibility here to make the green pitchfork projection that most probably will give direction to the next price move.
If we add a historical Fibonacci projection between the last low and a previous top, we can see price targets at $17.85 and $18.05. This last target to be reached near the end of the session between 15:00 and 16:00 EST. Both targets correspond to previous price levels, confirming the targets.
At 15:25 EST, after a nice steady up move within the lower side of the pitchfork channel, price now falls through the uptrend line after reaching the second Fibonacci price target. Time to take profit. We close the position at $18.06. A profit of $0.43 or 2.4%. We will take this up in the result table.
Our indicators confirm the downturn, moving already down from the top.
Price went just a little bit higher, made a tweezer top and is now moving flat at the end of this trading day.
Price continued moving rather flat with no good buy or sell opportunities. Friday April 16 GCI opened the day with a big gap, but at 10:20 EST, the whole of the market was starting a downturn. In GCI we have a spinning top, followed by a doji and confirmed by a bigger black candle down. This last candle is also breaking the uptrend line and price is far away from the 50 and 100 simple moving average. In the following chart you will see that all indicators are making a downturn too. We open a short position at $19.33.
Here you can see that all indicators are making a downturn, supporting our decision to open a short trade.
Price moves down and there is some up reaction now. Price is still below the red downtrend line, there is resistance from the top of the opening gap and from the 50 period moving average. We stay in the trade if these resistance levels hold.
There was no problem since price continued the downtrend immediately. A historical Fibonacci projection from the top back to the upper side of the opening gap, gives a price target at $18.1. This target has been reached and price turns up with a bullish engulfing candle pattern. Price breaks the last downtrend line and out of the downward wedge pattern. It is time to take profit and close the short position. We buy back GCI at $18.20. This makes a $1.13 or 5.8% profit. This is taken up in the result table.
Indicators turning up from below, support closing our position.
The results of this trading week are added in the table. There is more than 20% profit now in less than a month's time.
This is the end of last week's overview swing trading the stock GCI. Idea is that you follow the trade evolution and that you systematically learn applying all technical analysis techniques. You can receive trade signals during the week via an RSS link at stocata.org. 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 more 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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