A new trade idea for you to consider and evaluate on KO.
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We all love the market when the Bulls, price, and the trend are working together. For the swing trader, this is a dream come true.
The SPY has closed over the top t-line once again on the daily chart following the France vote and strong earnings. Yesterday’s candle pulled back slightly at the end of the day after walking into resistance. The hourly chart may be suggesting a little profit taking could be just around the corner. Below $238.40 today could be the profit taking trigger.
TWLO 2-day chart – April 7 a Bullish Harami was printed creating a double bottom below the t-line bands. Follow through pushed price over the top t-line band and put the chart into a Rounded Bottom Breakout.
Note we bought TWLO yesterday.
WYNN – Following our post to the HRC members in the trading room WYNN has rallied on a T-Line Run with only minor passes. We sold WYNN yesterday for a 29.88%
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We post to HRC members 10-15 swing trade ideas each day and post them in the member’s area of the website.
10-15 trade ideas below – for members only
A trade idea watch list is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame. That time could be one to 30 days for example.
From that watchlist, we wait until price action meets our conditions for a trade.
Controlling emotions and maintaining a trading discipline during earnings season challenges all traders. Over the next couple weeks prepare of an earnings barrage. CNBC will be pulling out it’s most dramatic bumper music, and the talking heads will be issuing predictions left and right. How can an average retail trader cope with this tsunami of data?
Have a plan and be disciplined enough to stick to the rules. Personally, I turn off the news and avoid the talking heads like the plague. I am responsible for my trading. No one cares about my money more than me. Consequently, I must stay focused on my plan and my rules! For me, that means digging into the charts and studying price action. Chasing big wins requires the willingness to take big losses if you’re wrong. I don’t know about you, but that is not part of my plan! The truth lies in the price action; everything else is just noise that can bias your decision process.
The hump day Economic Calendar is a quiet one. The Petroleum Status at 10:30 AM Eastern is the only number of consequence today. The last reading showed a decline in supplies and as a result helped the overall market by lifting some of the big oil companies. Another declining report today could give us a little hope that a trend is developing. Perhaps, we could look to energy stocks for some tasty gains in the near future! The Earnings Calendar continues to Ramp with 299 companies reporting today. Stay sharp because some the media darlings will start reporting and they will affect the overall market.
I have been a net seller into this sharp rally taking some very nice gains. I’m now very light on risk in my account as I’m expecting the market to pullback or at a minimum consolidate the recent move. At least that is my plan, but earnings could easily toss a big monkey wrench into that plan. Clearly, earnings are unpredictable. As traders, the best we can do is stay focused on price action clues while maintaining our discipline to avoid getting caught up in the drama. I’m confident we will be entering several new stock or options positions over the next few days. Please keep in mind that during earnings season trades can move very fast. Stick to your low-risk entry rules and avoid chasing.
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Doug
With the help of the French election the SPY is painting a Bullish W Pattern (clearly seen on the 3-day chart), follow through is needed. Yesterday price also closed over the 50-SMA and the upper T-Line Band. And the closing price $237.17 in also back above the cloud.
The battle is not over; A bull-Bear winner has not stepped forward.
SEDG – A Rounded Bottom Breakout Strategy, broke out above the 200-SMA setting up for a Bullish J-Hook Breakout. 3-day chart pictures a beautiful Morning Star that launch price back above the upper T-Line Band.
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IMGN – Following my post to our subscribers that IMGN was likely to move higher in the coming weeks, it moved 97% higher and is now showing signs of even moving higher from its current breakout. Note the Doji Continuation Pattern
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Members trade ideas below reserved for subscribed members
Scanned from Tc2000 | 10-15 trade ideas daily
A trade idea watch list is a list of stocks that we feel will move in our desired direction over a swing trader’s time frame. That time could be one to 30 days for example.
From that watchlist, we wait until price action meets our conditions for a trade.
© 2007 – 2017 Hit & Run Candlesticks INC. – Right Way Options – Strategic Swing Trade Service – Trader Vision – All Rights Reserved. Terms of Service Investing and Trading involves significant financial risk and is not suitable for everyone. No communication from Rick Saddler, Doug
The Green Eyed Monster of Envy can destroy your trading! Last night I was talking with a fellow trader that was very disappointed with their trading. As we progressed through the conversation, it became clear that his disappointment and frustration was self-inflicted. Although he had turned the corner from a consistently losing trader to a net winning trader, it was not enough. Like all of us, he wanted more.
As a very competitive person he was comparing himself to other traders and the results they were posting. Envy was destroying his success! He was ready to quit trading because of the frustration even through his account was growing. Although we all work to help each other improve as traders in the trading room, trading is a single person activity. We all start from a different place, and we all have different goals. Comparing yourself to another trader is like comparing apples and oranges.
A trader must compete with themselves not others. Your goal should be to see improvement in yourself and your trading account. A good place to start is by setting small achievable goals for each week or each month. Record your results. If you only made $10 last month that is a Huge Improvement if you have been a losing trader! If in the next month you see a gain of $15 that’s a 50% improvement over the prior month. Small incremental improvements build confidence and over time builds big accounts.
Today on the Economic Calendar we have the Case-Shiller numbers at 9:00 AM Eastern followed by New Home Sales and Consumer Confidence at 10:00. Although they are all important, the big number of the day is the New Home Sales and the one most likely to move the market. Earnings are starting to ramp up with 190 companies reporting today. Keep checking!
Futures remained positive all night and continued to push higher in the premarket as earnings roll out. How great it will be to have a follow through day after all the choppiness of the last couple months! I will be looking for new trades today. However, I will be watchful for signs of a pullback to test support because it could happen at any time. Yesterday was saw the Dow close up more than 200 points. It would not be out of the question to see some profit taking.
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Doug
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The “cup and handle formation” is a bullish signal pointing to a continuation of the current trend. It may extend over several weeks or even months and contains specific attributes.
As with any continuation pattern, you rely on a confirmation in one form or another. This may occur as a second technical price signal, a candlestick continuation, volume spike, or change in momentum.
There are several parts to the cup and handle. First is the cup, which is a rounded bottom extending over time. As the shape of the cup is completed, expect the handle to emerge. This is a swing trade in the opposite direction, characterized by a specific channel between resistance and support, forming as a pennant or similar channel movement and, quite often, separated from the “cup” with an upside gap. As the handle declines and concludes, price reverses, moving again to the upside and setting up as a breakout from previous resistance.
Cup depth should represent retracement of about one-third of the prior advance at the most. In some especially volatile cases, retracement could also be much greater, so the one-third guidance is not an absolute requirement.
The Handle
Handle should be understood as a consolidating offset against the bullish movement in the greater scheme of price behavior. As a pullback, the handle is a short-term aspect of the pattern. Because it is a retracement, the caveat for all retracements applies here. Expect a relatively short-term period of time in order to predict a strong continuation of the bullish trend.
At this point – the conclusion of the three phases (cup, handle, breakout), look for confirmation in the form of a bullish continuation signal. While this may develop as an ascending triangle, it is more likely to appear as one of many bullish candlestick continuation signals. This confirms the cup and handle as the initial bullish indicator.
Some chartists like to set price targets following the cup and handle, based on duration of the pattern, degree of price movement, and strength of the subsequent continuation. However, as an initial effort, recognizing the pattern is essential for identifying and then confirming its value in predicting price direction.
The initial bullish trend moved price from $61.75 to resistance of $63.75 in approximately a two-week period. At that point, the rounded bottom of the cup began to form. It lasted approximately 1 ½ months.
The handle formed after a strong upward gap and formation of a short-term bearish island cluster of two sessions (defined as movement away from price range with gaps on both sides). The handle moved price from $64.50 down to $62.50 over less than one week.
A breakout followed, moving price above resistance of $63.75. The bullish continuation initiated by the cup and handle was confirmed at the point of breakout by a thrusting lines candlestick, a bullish continuation. The ensuing bullish trend, marked by the trendline, continued into March, when a retracement appeared. This was followed immediately by another bullish thrusting lines pattern, indicating that the bullish trend was not ending.
Every cup and handle is slightly unique, so do not expect the exact configuration to occur in every case. So much depends on volume and volatility in effect at the moment. Economic and fundamental news (or rumor) also determine how acute the rounded bottom of the cup will be, and how long the handle will ensure.
Can the cup and handle fail or turn out as a false signal? Yes. All reversal and continuation patterns are indications only, and cannot ever lead to 100% confidence. However, as with all strong signals, reliance on the initial pattern and confirmation improves your chances for a successful timing of entry and exit and overall improvement in chart reading capabilities.
To learn more about the cup and handle in its many forms, go to Bullish Cup and Handle Pattern for an e-book on the topic. This e-book provides an in-depth analysis of the pattern and how you can use it to trade with greater success.
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