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SWING TUTORIAL - ABSLAMCIn this tutorial, we analyze the stock NSE:ABSLAMC (Aditya Birla Sun Life AMC Limited) identifying a lucrative swing trading opportunity following its all-time high in Oct 2021. The stock declined by nearly 57%, forming a Lower Low Price Action Pattern, but subsequently reversed its trend. At the same time, we can also observe the MACD Level making a contradictory Pattern of Higher Lows. This Higher Low Pattern of the MACD signaled the start of a Bullish Momentum, thereby also signaling a good Buying Opportunity. The trading strategy yielded approximately 114% returns in 63 weeks. Technical analysis concepts used included price action analysis, MACD, momentum reversal, trend analysis and chart patterns. The MACD crossover served as the Entry Point, with the stock rising to its Swing High Levels of 720 and serving as our Exit too. As of wiring this tutorial, we can also notice how the stock is making a breakout and retest of the Swing High levels and trying to continue its momentum further upward trying to make a new All Time High. KEY OBSERVATIONS: 1. Momentum Reversal: The stock's price action shifted from a bearish to a bullish trend, indicating a potential reversal. 2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure. 3. MACD Crossover: The successful crossover in May 2023 confirmed the bullish trend, creating an entry opportunity. TRADING STRATEGY AND RESULTS: 1. Entry Point: MACD crossover in May 2023. 2. Exit Point: Swing High Levels - 720. 3. Return: Approximately 114%. 4. Trade Duration: 63 weeks. TECHNICAL ANALYSIS CONCEPTS USED: 1. Price Action Analysis 2. MACD (Moving Average Convergence Divergence) 3. Momentum Reversal 4. Trend Analysis 5. Chart Patterns NOTE: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing Price Action, MACD movements, and Reversal patterns, traders can pinpoint potential entry and exit points. Would you like to explore more technical analysis concepts or case studies? Share your feedback and suggestions in the comments section below.
NSE:ABSLAMCEducation
by thepranam
SWING TUTORIAL - ICICIPRULIIn this tutorial, we analyze the stock NSE:ICICIPRULI (ICICI Prudential Life Insurance Company Limited) identifying a lucrative swing trading opportunity following its all-time high in Sep 2021. The stock declined by nearly 50%, forming a Lower Low Price Action Pattern, but subsequently reversed its trend. At the same time, we can also observe the MACD Level making a contradictory Pattern of Higher Lows. This Higher Low Pattern of the MACD signaled the start of a Bullish Momentum, thereby also signaling a good Buying Opportunity. The trading strategy yielded approximately 88% returns in 71 weeks. Technical analysis concepts used included price action analysis, MACD, momentum reversal, trend analysis and chart patterns. The MACD crossover served as the Entry Point, with the stock rising to its Swing High Levels of 724 and serving as our Exit too. As of wiring this tutorial, we can also notice how the stock is making a breakout and retest of the Swing High levels and trying to continue its momentum further upward trying to make a new All Time High. KEY OBSERVATIONS: 1. Momentum Reversal: The stock's price action shifted from a bearish to a bullish trend, indicating a potential reversal. 2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure. 3. MACD Crossover: The successful crossover in March 2023 confirmed the bullish trend, creating an entry opportunity. TRADING STRATEGY AND RESULTS: 1. Entry Point: MACD crossover in March 2023. 2. Exit Point: Swing High Levels - 724. 3. Return: Approximately 88%. 4. Trade Duration: 71 weeks. TECHNICAL ANALYSIS CONCEPTS USED: 1. Price Action Analysis 2. MACD (Moving Average Convergence Divergence) 3. Momentum Reversal 4. Trend Analysis 5. Chart Patterns NOTE: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing Price Action, MACD movements, and Reversal patterns, traders can pinpoint potential entry and exit points. Would you like to explore more technical analysis concepts or case studies? Share your feedback and suggestions in the comments section below.
NSE:ICICIPRULIEducation
by thepranam
SWING TUTORIAL - MFSLIn this tutorial, we analyze the stock NSE:MFSL (MAX FINANCIAL SERV LTD) identifying a lucrative swing trading opportunity following its all-time high in July 2021. The stock declined by nearly 50%, forming a Lower Low Price Action Pattern, but subsequently reversed its trend. At the same time, we can also observe the MACD Level making a contradictory Pattern of Higher Highs. This Higher High Pattern of the MACD signaled the start of a Bullish Momentum, thereby also signaling a good Buying Opportunity. The trading strategy yielded approximately 80% returns in 71 weeks. Technical analysis concepts used included price action analysis, MACD, momentum reversal, trend analysis and chart patterns. The MACD crossover served as the Entry Point, with the stock rising to its Swing High Levels of 1148 and serving as our Exit too. As of wiring this tutorial, we can also notice how the stock is making a breakout and retest of the Swing High levels and trying to continue its momentum further upward trying to make a new All Time High. KEY OBSERVATIONS: 1. Momentum Reversal: The stock's price action shifted from a bearish to a bullish trend, indicating a potential reversal. 2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure. 3. MACD Crossover: The successful crossover in May 2023 confirmed the bullish trend, creating an entry opportunity. TRADING STRATEGY AND RESULTS: 1. Entry Point: MACD crossover in May 2023. 2. Exit Point: Swing High Levels - 1148. 3. Return: Approximately 80%. 4. Trade Duration: 71 weeks. NOTE: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing Price Action, MACD movements, and Reversal patterns, traders can pinpoint potential entry and exit points. Would you like to explore more technical analysis concepts or case studies? Share your feedback and suggestions in the comments section below.
NSE:MFSLEducation
by thepranam
SWING TUTORIAL - RALLISIn this tutorial, we analyzes the reversal of NSE:RALLIS 's 50% decline, identifying key technical indicators that signaled a buying opportunity. We'll explore how to recognize bullish momentum and optimal entry points using chart analysis. NSE:RALLIS reached its all-time high at 362 before experiencing a significant downturn. However, the stock began forming support levels near 200 in June 2022 and retested this level again in May 2023. Key Observations: 1. Support Levels: The stock consistently found support at ₹200, indicating a potential reversal. 2. MACD Indicator: The Moving Average Convergence Divergence (MACD) line showed steady upward momentum, signaling increasing bullish pressure. 3. MACD Crossover: The successful crossover in June 2023 confirmed the bullish trend, creating an entry opportunity. Trading Strategy and Results: Based on this analysis, our entry point was established at the MACD crossover. The stock subsequently rose to its swing high levels, yielding approximately 85% returns in just 57 weeks. Note: This case study demonstrates the effectiveness of combining technical indicators to identify bullish momentum. By recognizing support levels, MACD movements, and consolidation patterns, traders can pinpoint potential entry points. Would you like to explore more technical analysis concepts or case studies? Share your feedback and suggestions in the comments section below.
NSE:RALLISEducation
by thepranam
11
When Platform Position Style Trades Go Momentum: FTAIThis platform position-style trade is starting to shift to a momentum or swing-style trade, which happens frequently with platforming trends. Above is a daily chart so you can see the shifting daily patterns from platforming to momentum. The angle of ascent is getting steeper, which is best seen on a weekly chart, below. If you are holding this stock or others similar to this trend, it is time to shift gears to watch for speculative trading and other risk factors. At some point the angle of ascent will be too steep to sustain the uptrend and you will need to plan how to manage the trade: take profits or hold? Is there potential for longer-term growth? If so, a profit stop must leave ample room for the stock to adjust out the big gains.
NASDAQ:FTAI
by MarthaStokesCMT-TechniTrader
Speculation to correction risk: COSTNASDAQ:COST was over-speculated by retail groups. Extreme angles of ascent do not hold. The severity of the recent angle of ascent due to speculation warned well ahead of time that COST would have a meltdown when buyers evaporated. The first strong support level is at the black line. The Weekly chart shows stronger runs up than down. Costco is frequently speculated as there are retail gurus and chatroom groups, etc. that run the stock up from time to time. However, this stock is absurdly overpriced at this level and needs to do a split.
NASDAQ:COSTShort
by MarthaStokesCMT-TechniTrader
1
Minervini’s Trade Management and Exit StrategiesIntroduction In the dynamic world of trading, mastering the art of trade management and developing robust exit strategies are as crucial as identifying the right entry points. These skills are not just about safeguarding investments; they are about maximizing profitability and ensuring long-term success in the markets. The importance of these strategies cannot be overstated, as they play a pivotal role in determining whether a trader achieves consistent success or faces erratic results. At the heart of this discussion is the expertise of Mark Minervini, a renowned stock market wizard whose track record speaks volumes. Minervini, a U.S. Investing Champion, is not just known for his exceptional entry strategies but equally for his disciplined approach to managing trades and executing well-timed exits. His methods, deeply rooted in a thorough understanding of market psychology and technical analysis, offer invaluable lessons in how to navigate the complexities of both bullish and bearish markets. This article delves into the vital components of trade management and exit strategies as advocated by Minervini. We will explore how to effectively manage open trades, discern the right time to lock in profits, and importantly, how to recognize when a trade is not working and it's time to cut losses. The focus will be on striking that delicate balance between realizing profits and minimizing losses - a balance that is essential for sustaining success in the world of trading. Through this exploration, readers will gain insights into not just the mechanics but also the mindset required to execute these strategies effectively, drawing upon the wisdom and experience of one of the most successful traders of our time. Overview of Trade Management in Minervini's Strategy Trade management, a cornerstone in Mark Minervini's trading strategy, is the disciplined process of overseeing a trade from the moment of entry until exit. It encompasses a range of decisions and actions that a trader must consider to maximize potential gains and minimize losses. In Minervini's approach, trade management is not a static set of rules but a dynamic process that adjusts to the changing conditions of the market and the evolving performance of the stock. Minervini’s strategy, distinguished by its meticulous nature, treats each trade as a unique scenario. This approach goes beyond merely identifying entry points; it involves continuous monitoring and adjusting of positions as the market unfolds. Critical to this process is the assessment of risk-reward ratios, vigilant stop-loss management, and the strategic planning of exit points. Minervini emphasizes the importance of not only knowing when to enter a trade but also when to exit – whether for profit or to stop a loss. The essence of effective trade management in Minervini's philosophy lies in its capacity to enhance the longevity and sustainability of a trading career. It's about protecting the trading capital and compounding gains over time. Effective trade management acts as a safeguard against the emotional pitfalls of trading, such as greed and fear, which often lead to hasty decisions. By sticking to a well-defined trade management plan, traders can maintain a level of consistency and discipline, essential for navigating the uncertainties of the market. Minervini’s approach demonstrates that successful trading is not just about the number of winning trades but about how well you manage each trade, maximizing profits and, just as importantly, minimizing losses. This holistic view of trade management is fundamental to achieving long-term success in the highly competitive and often unpredictable world of stock trading. Setting Profit Targets In the realm of trading, setting profit targets is a critical aspect of a successful strategy. Mark Minervini, a veteran trader known for his meticulous approach, places significant emphasis on establishing realistic and attainable profit targets. According to Minervini's principles, the setting of these targets is not a mere guessing game but a strategic decision grounded in thorough analysis and informed by a deep understanding of market dynamics. A key factor in setting profit targets is the historical performance of the stock. Minervini advocates for a careful examination of past price patterns and trends. This analysis provides valuable insights into the potential range of movement a stock can exhibit. By understanding the historical highs and lows, along with the average percentage moves during bullish phases, traders can set more informed and achievable profit targets. Another critical aspect is the current market conditions. Minervini's approach involves gauging the overall market sentiment and trend. In a strong bullish market, profit targets might be set higher, capitalizing on the general upward momentum. Conversely, in a bearish or volatile market, more conservative targets may be prudent to mitigate risk. This adaptive strategy ensures that profit targets are aligned with the broader market environment, maximizing opportunities while managing risk. Individual stock behavior also plays a crucial role in setting profit targets. Minervini pays close attention to specific indicators such as trading volume, price action, and earnings growth. A stock showing strong fundamentals coupled with positive price action might warrant a more ambitious profit target. In contrast, a stock with weaker fundamentals or less favorable price action might necessitate a more modest target. This tailored approach to each stock ensures that profit targets are not only realistic but also optimized for each trading scenario. In essence, setting profit targets in Minervini's trading strategy is a balanced act of considering historical data, current market conditions, and individual stock behavior. This methodical approach underscores the importance of informed decision-making in trading, steering clear of arbitrary or overly optimistic targets. By setting realistic profit targets, traders can effectively manage their expectations and position themselves for sustainable success. Using Stop-Loss Orders for Risk Control In the high-stakes world of trading, stop-loss orders are a fundamental tool for risk control, and their strategic use is a hallmark of Mark Minervini’s trade management philosophy. A stop-loss order is an order placed with a broker to sell a security when it reaches a specific price. In Minervini's approach, these are not just protective measures; they are integral components of a comprehensive trading plan, designed to limit potential losses and protect capital. The key to effectively using stop-loss orders lies in setting appropriate stop-loss levels. Minervini advocates for setting these levels based on technical analysis and market realities, rather than on the amount one is willing to lose. This involves identifying support and resistance levels, historical price patterns, and volatility indicators. For instance, a stop-loss might be placed just below a significant support level, recognizing that if this level is breached, the rationale for holding the position may no longer be valid. Adjusting stop-loss orders is equally important in Minervini's strategy. As a trade progresses favorably, he recommends adjusting the stop-loss level upwards to lock in profits and further reduce potential loss. This practice, known as 'trailing stop-loss', ensures that profits are protected while giving the trade room to grow. It's a dynamic process that balances the desire to maximize gains with the necessity of minimizing losses. Another aspect of Minervini's approach is the consideration of market volatility. In highly volatile markets, stop-loss levels may need to be set wider to avoid being stopped out by normal price fluctuations. Conversely, in more stable markets, tighter stop-losses can be used to protect profits and capital more effectively. The use of stop-loss orders in Minervini’s strategy is not just a tactic, but a discipline. It requires traders to make pre-planned decisions, thus removing emotional bias from the equation. This disciplined approach to risk control ensures that traders do not hold onto losing positions in the hope of a turnaround, a common pitfall in the trading world. In summary, stop-loss orders, as utilized in Minervini’s trading strategy, are essential tools for risk management. They are carefully calibrated to each trade, taking into account technical indicators, market conditions, and overall trading goals. By effectively using stop-loss orders, traders can protect their capital, manage their risk, and position themselves for long-term success in the unpredictable realm of the stock market. Assessing Market Conditions Understanding and adapting to changing market conditions is a critical component of successful trade management and exit strategy formulation. Mark Minervini, with his deep-rooted understanding of market nuances, emphasizes the importance of being responsive and adaptable to the market's ebb and flow. This article explores how varying market conditions influence trade decisions and the paramount importance of adaptability in Minervini's trading approach. Market conditions can vary widely, from bullish trends to bearish downturns, and from high volatility environments to periods of market calm. Each of these scenarios presents different challenges and opportunities, influencing how a trade should be managed and when it might be appropriate to exit. For instance, in a strong bull market, traders might hold onto their positions for longer, allowing profits to run further, whereas in a volatile or bear market, tighter stop-losses and quicker exits might be more prudent to protect capital. Minervini is particularly known for his acute awareness of the market's overall health and direction. He assesses various indicators, including market breadth, leading sectors, and the performance of major indices, to gauge market strength. This holistic view helps in making informed decisions about trade management and determining appropriate exit points. If the market shows signs of weakness, Minervini might be more inclined to take profits early or tighten stop-loss orders to safeguard against sudden downturns. Adaptability and responsiveness are the cornerstones of Minervini's approach. He understands that the market is an ever-evolving entity and that strategies and plans must be flexible enough to accommodate this dynamism. This means being willing to reassess and adjust trade parameters in response to new information or shifts in market sentiment. It's not just about having a plan but also about being ready to modify that plan when the market context changes. Moreover, Minervini advocates for a mindset that is open to change and free from ego. Many traders fall into the trap of becoming emotionally attached to their positions or predictions. In contrast, Minervini's method involves a dispassionate analysis of the market's actual behavior, allowing for a nimble and unbiased approach to trade management and exit decisions. In conclusion, assessing and adapting to market conditions is an essential skill in trading, significantly emphasized in Minervini's strategy. By being observant, flexible, and responsive, traders can manage their trades more effectively and make smarter exit decisions, aligning their actions with the actual movements and trends of the market. This adaptability not only helps in capitalizing on opportunities but also plays a crucial role in risk management and long-term trading success. Criteria for Exiting a Trade Deciding when to exit a trade is as crucial as knowing when to enter, and Mark Minervini, a seasoned trader, emphasizes several key criteria for making these pivotal decisions. His approach to exiting a trade is methodical, relying on a combination of pre-set objectives, market analysis, and technical indicators. This article delves into the specific criteria that Minervini uses to guide his exit decisions, including reaching profit targets, stop-loss triggers, and the interpretation of technical indicators. Hitting Profit Targets: One of the primary criteria for exiting a trade in Minervini's strategy is reaching pre-determined profit targets. These targets are set based on a thorough analysis of the stock's historical performance and market conditions. For instance, if a stock has consistently shown a capacity for a 20% gain post-breakout, setting a profit target around this percentage would be in line with Minervini's approach. Once this target is hit, Minervini advocates for taking profits, rather than succumbing to greed and holding out for even higher gains. Stop-Loss Triggers: Equally important in Minervini’s strategy is the use of stop-loss orders as a trigger for exiting a trade. These are set at strategic levels to limit potential losses. For example, a stop-loss might be placed just below a key support level or a recent low. If this level is breached, it often indicates a breakdown in the stock's pattern or a shift in market sentiment, warranting an exit. Technical Indicators: Minervini also employs various technical indicators to inform his exit decisions. These include changes in volume patterns, reversal signals on candlestick charts, and breaks below key moving averages. For example, a high-volume sell-off or a bearish reversal pattern like a 'head and shoulders' could signal a potential exit. Similarly, a break below a critical moving average such as the 50-day or 200-day line might indicate weakening momentum and a possible exit point. Change in Fundamental Conditions: Although primarily a technical trader, Minervini does not ignore fundamental shifts. A significant change in the fundamental outlook of a company, such as deteriorating earnings or a change in leadership, can also prompt an exit. This criterion reflects the importance of staying attuned to all aspects influencing a stock's performance. Market Environment Shifts: Lastly, broad shifts in the overall market environment can be a criterion for exiting trades. If the general market starts showing signs of weakness or enters a correction phase, Minervini might consider exiting positions, even if individual stocks have not hit their profit targets or stop-loss levels. In summary, Minervini’s criteria for exiting a trade are multifaceted, integrating profit targets, stop-loss triggers, technical analysis, fundamental changes, and overall market conditions. This comprehensive approach ensures that exit decisions are well-rounded, balancing the pursuit of profit with prudent risk management. By adhering to these criteria, traders can make informed decisions, maximizing gains, and minimizing losses, in alignment with the nuanced complexities of market behavior. Managing Winning Trades Navigating winning trades is a nuanced art in the trading world. Mark Minervini, known for his strategic prowess, emphasizes several key strategies for maximizing profits while simultaneously safeguarding them. Central to this is finding the delicate balance between allowing profits to run and protecting the gains already made. This article explores the techniques employed by Minervini to manage winning trades, particularly focusing on the use of trailing stops and the equilibrium between pursuing greater profits and risk management. Using Trailing Stops: A pivotal strategy in Minervini’s approach is the use of trailing stop-loss orders. Unlike fixed stop-loss orders, trailing stops move in tandem with the stock price, locking in profits as the stock's price climbs. For instance, if a stock rises by a certain percentage or dollar amount from its purchase price, the trailing stop is adjusted upward by a proportional amount. This technique ensures that profits are protected against sudden downturns, while still giving the trade room to grow. It’s a dynamic tool that adapts to the stock’s performance, embodying the principle of 'letting profits run while cutting losses short'. Evaluating Market Strength and Stock Momentum: Minervini closely monitors the strength of the overall market and the momentum of individual stocks. In strong market conditions, he might give winning trades more leeway, allowing them to run further before tightening the trailing stop. Similarly, if a stock demonstrates sustained strength and superior performance, it could warrant staying in the trade longer to maximize gains. This assessment is continually updated to reflect the latest market data and stock behavior. Reassessing Trade Thesis: A key aspect of managing winning trades is the continual reassessment of the initial trade thesis. Minervini examines whether the reasons for entering the trade still hold true. Factors such as changing market conditions, new company developments, or shifts in sector dynamics might influence the decision to either stay in the trade or take profits. Balancing Greed and Prudence: One of the most challenging aspects of trading is managing the psychological component. Minervini stresses the importance of balancing the natural inclination towards greed – wanting to squeeze out every possible gain – with the prudence of securing profits. This balance is achieved by sticking to a disciplined trading plan, one that incorporates trailing stops and continuous assessment of the trade's validity. Partial Profit Taking: Another strategy employed by Minervini is taking partial profits at predetermined levels while leaving a portion of the position open to benefit from any further upside. This approach captures some gains while still participating in potential future growth. In conclusion, managing winning trades in Minervini’s style is a multifaceted approach that requires a combination of strategic tools like trailing stops, an ongoing analysis of market conditions and stock momentum, and a disciplined mindset. It’s about striking a balance between the desire to let profits run and the wisdom to protect them, ensuring that successful trades contribute significantly to overall trading success. Handling Losing Trades In the unpredictable landscape of trading, encountering losing trades is an inevitable part of the journey. Mark Minervini, a seasoned trader, underscores several key strategies for effectively managing losing trades, with an emphasis on minimizing losses, executing timely exits, and maintaining emotional discipline. This article delves into these strategies, highlighting the importance of a rational approach to losing trades and the avoidance of common psychological pitfalls such as the "sunk cost fallacy." Timely Exits Using Pre-Set Stop-Loss Orders: One of Minervini's fundamental strategies for handling losing trades is the implementation of pre-set stop-loss orders. These orders are designed to automatically exit a trade at a predetermined price point, thus capping potential losses. By setting these levels based on technical analysis and risk tolerance, traders can ensure they exit losing positions before the losses exacerbate. This practice not only preserves capital but also helps in maintaining a clear trading plan, free from emotional decision-making. Reassessing the Trade Thesis: When a trade starts to move against expectations, Minervini advises a thorough reassessment of the original trade thesis. This involves examining whether the conditions under which the trade was initiated have changed. Factors such as shifting market trends, sector weaknesses, or changes in a company’s fundamentals should trigger a reevaluation. If the original reasons for entering the trade no longer hold, it may be prudent to exit, even before the stop-loss is triggered. Avoiding the Sunk Cost Fallacy: A critical aspect of handling losing trades is avoiding the sunk cost fallacy – the tendency to continue investing in a losing proposition in the hope of recovering past losses. Minervini emphasizes the importance of viewing each trade as an independent decision, unaffected by the amount of time or money already invested. The decision to stay in a trade should be based on current analysis and prospects, not on the desire to recoup previous losses. Emotional Discipline and Rational Decision-Making: Emotional discipline is paramount in handling losing trades. Minervini highlights the importance of separating emotions from trading decisions. Feelings of hope, fear, or regret can cloud judgment, leading to irrational decisions like holding onto losing trades for too long. A disciplined approach, one that adheres to pre-set rules and logical analysis, is essential for navigating through losses effectively. Learning from Losing Trades: Finally, Minervini advocates for using losing trades as learning opportunities. Analyzing why a trade did not work out as expected can provide valuable insights, helping to refine strategies and improve future decision-making. This constructive approach transforms losses into lessons, contributing to a trader's growth and resilience. In summary, handling losing trades in Minervini's style involves a blend of strategic planning, continuous reassessment, emotional discipline, and an openness to learning. By applying these strategies, traders can minimize losses, maintain a healthy trading psychology, and lay a foundation for long-term success in the challenging world of trading. The Role of Portfolio Analysis in Exit Strategies In the realm of trading, individual trade decisions do not exist in isolation; they are part of a broader strategy that encompasses the entire portfolio. Mark Minervini, with his nuanced approach to trading, places great emphasis on how overall portfolio performance influences individual trade exits. This article explores the integral role of portfolio analysis in shaping exit strategies and discusses the concept of portfolio rebalancing in accordance with Minervini’s methods. Assessing Portfolio Health and Performance: Minervini advocates for regularly assessing the overall health and performance of the portfolio. This analysis goes beyond simply tallying up gains and losses; it involves evaluating the portfolio's alignment with market conditions, risk exposure, and investment objectives. For instance, if a portfolio is heavily skewed towards a sector that is starting to show weakness, it might prompt reevaluation and adjustment of individual positions within that sector. Impact on Individual Trade Exits: The performance of the overall portfolio can significantly influence decisions on individual trade exits. In a scenario where the portfolio is performing robustly, a trader might afford more leeway to individual positions, allowing them to run further before exiting. Conversely, in a portfolio that is underperforming or exposed to heightened risk, there might be a more conservative approach towards exiting trades, focusing on protecting capital and reducing exposure. Portfolio Rebalancing as a Strategic Tool: Portfolio rebalancing is a critical strategy in Minervini’s approach. It involves adjusting the composition of the portfolio to maintain a desired level of risk and alignment with trading goals. Rebalancing can lead to exiting certain trades, especially those that no longer fit the portfolio's risk profile or have become disproportionately large, thereby skewing the portfolio's balance. This process is not just about cutting losses or taking profits; it's about strategic realignment with overarching trading objectives. Dynamic Response to Market Changes: Minervini’s method requires a dynamic response to changing market conditions. This might mean reducing exposure to certain sectors in response to market shifts or taking profits in over-performing areas to reallocate resources to more promising opportunities. Portfolio analysis in this context is an ongoing process, demanding vigilance and responsiveness. Risk Management through Diversification: Integral to portfolio analysis in Minervini’s strategy is the concept of diversification as a risk management tool. Diversification involves spreading investments across various sectors and asset classes to mitigate risk. This diversification influences exit strategies, as it might necessitate exiting trades in over-represented areas to maintain a balanced and diversified portfolio. Periodic Reviews and Adjustments: Regularly reviewing and adjusting the portfolio is a key aspect of Minervini's approach. This includes reassessing individual holdings, sector allocations, and the overall risk profile, ensuring that the portfolio remains aligned with strategic objectives and market realities. In conclusion, the role of portfolio analysis in shaping exit strategies is a fundamental aspect of Mark Minervini's trading approach. It involves a holistic view of the portfolio, considering not just the performance of individual trades but also their impact on and alignment with the overall portfolio. Through strategic rebalancing, risk management, and dynamic responsiveness to market changes, traders can ensure that their exit strategies are well-informed, balanced, and conducive to long-term trading success. Common Mistakes and Pitfalls Navigating the world of trading is fraught with potential missteps, especially in the realms of trade management and exit decisions. Even experienced traders can fall prey to common errors that can adversely affect their trading performance. Mark Minervini, through his years of trading experience, has identified several such pitfalls and offers valuable advice on how to avoid them. This article outlines these common mistakes and provides guidance on steering clear of them. Letting Emotions Drive Decisions: One of the most prevalent errors in trading is allowing emotions like fear, greed, or hope to dictate trade management and exit strategies. Emotional decision-making can lead to holding onto losing trades for too long or selling winning trades too early. Minervini advocates for a disciplined, rule-based approach where decisions are made based on analysis and strategy, not emotional reactions. Failing to Set or Adhere to Stop-Loss Orders: Another common mistake is not setting stop-loss orders or ignoring them once set. Stop-losses are critical for risk management, and disregarding them can lead to significant and unnecessary losses. Traders should adhere to their pre-set stop-loss levels, ensuring they exit losing trades as planned to protect their capital. Overtrading or Micromanaging Trades: Overtrading, often driven by the urge to constantly be in the market or to recoup losses, can lead to diminished returns and increased transaction costs. Similarly, micromanaging every small market move can prevent trades from reaching their full potential. Minervini emphasizes the importance of patience and allowing trades to develop based on the initial analysis and strategy. Ignoring Market Conditions and Trends: Neglecting the broader market context is a mistake that can lead to poor trade management decisions. Minervini underlines the need to align trade strategies with overall market conditions, adapting exit strategies based on market trends and volatility. Setting Unrealistic Profit Targets: While optimism is a positive trait, setting unrealistic profit targets can lead to disappointment and poor decision-making. Targets should be based on thorough analysis and realistic expectations, considering historical performance and current market dynamics. Not Learning from Past Trades: Every trade, whether successful or not, offers valuable lessons. A common pitfall is not taking the time to analyze and learn from past trades. Minervini advises reviewing both winning and losing trades to understand what worked and what didn’t, thereby refining future strategies. Lack of a Well-Defined Trading Plan: Perhaps the most fundamental error is not having a well-defined trading plan. Such a plan should include clear criteria for entering and exiting trades, risk management strategies, and how to respond to various market scenarios. Trading without a plan is akin to navigating without a map, likely leading to inconsistent and unguided decisions. To avoid these common mistakes, traders should cultivate discipline, adhere to a well-thought-out trading plan, remain aware of market conditions, set realistic goals, and continuously learn from their experiences. By embodying these practices, traders can significantly improve their trade management and exit decision-making processes, aligning their actions with the principles of successful trading as advocated by Mark Minervini. Conclusion Throughout this exploration of trade management and exit strategies, guided by the principles of Mark Minervini, we've uncovered the vital components that contribute to successful trading. This journey has emphasized the necessity of a disciplined approach, not just in selecting trades but in managing them through to their conclusion, whether that be in realizing profits or mitigating losses. The key points we've covered underscore this disciplined approach: Strategic Trade Management: Effective trade management is central to success. It involves setting realistic profit targets based on thorough analysis, using stop-loss orders to control risks, and continuously reassessing trades as market conditions evolve. Considered Exit Strategies: Exit strategies must be adaptable, responding to the ongoing performance of the trade and overarching market trends. These strategies hinge on a balance between reaching predetermined profit targets and responding to technical or fundamental signals that suggest a change in strategy. Emotional Discipline: A critical aspect of trading is the ability to maintain emotional discipline. Decisions should be driven by strategy and analytical insight rather than emotional responses, a challenge but a necessity for consistent success. Continuous Learning: Each trade, whether a win or a loss, is a learning opportunity. Reflective analysis of past trades is essential for refining strategies and improving future decision-making. Holistic Portfolio Management: Effective trade management also involves considering each trade’s role within the broader portfolio. Regularly reviewing and rebalancing the portfolio to align with strategic objectives and risk tolerance is crucial. Awareness of Pitfalls: Recognizing and avoiding common trading mistakes, such as emotional decision-making, neglecting market conditions, or failing to adhere to a trading plan, is vital for long-term trading efficacy. In summation, the teachings of Mark Minervini offer more than just tactics; they provide a framework for disciplined trading, incorporating both technical skill and psychological fortitude. This comprehensive approach to trade management and exit strategies is not merely a set of rules but a philosophy of trading that emphasizes thoughtful decision-making, risk management, and adaptability. Embracing these principles equips traders with the tools and mindset necessary to navigate the complexities and challenges of the market, paving the way for sustained success in their trading pursuits.
NASDAQ:QQQEducation
by JS_TechTrading
Exit Strategies to Consider on Each Trade: a Complete GuideEnter, monitor, and exit are three vital steps to follow while trading. While most traders focus on how and when they can enter a particular setup, they pay less attention to their exit strategy. Today, we are gonna look into some popular exit strategies that we utilise in our personal trading. 1) Breakeven closure When the price is moving in our direction and is already a few key zones away from the entry zone, we make the trade risk-free by moving the Stop Loss level to the price of entry. If the Stop Loss gets hit, we exit the trade with neither a gain nor a loss. 2) Manual Closure In the process of monitoring, if the price does not play out according to our plan, we tend to make quick decision and exit the trade earlier than planned. 3) Target Profit We set a Take Profit (TP) order that closes the transaction as soon as it gets triggered. 4) Stop Loss
 We set a Stop Loss (SL) order that closes the transaction as soon as it gets triggered.
BITSTAMP:BTCUSDEducation
by Investroy
16
Bounce Risk for Selling ShortStocks that are falling rapidly often have the illusion that they will never stop falling. The panic that settles into the mindset of an investor who is watching his or her profits and capital erode overnight can overwhelm a stock’s price action. So for a brief time, the stock can behave outside of what the chart patterns would suggest was reasonable. But the higher risk is always the bounce. Stocks can bounce without warning. Huge up days that form in a downtrend can cause significant losses for short sellers. A stock bounces because it hits a price point where: 1. b uyers are waiting to go long 2. where large-lot short sellers are preparing to exit Monthly and yearly highs are areas where there is risk for a bounce. These bounces are often caused by small-lot investors and traders perceiving this as a good place to buy a stock that has corrected. The old adage, “buy low and sell high,” prompts the uninformed to buy as a stock is running down without understanding the dynamics of a downtrend. So they buy at monthly and yearly highs when they are called out by the various news and trading chat forums: “XYZ has hit its 52-week price, this is a good time to buy XYZ.” Another big bounce area is far more important: the monthly lows and yearly lows. This is the price range where the wiser bargain hunters and bottom fishers lurk around. They know that low area is solid support and that a downtrending correction isn’t going to last on a strong company. Therefore, lows pose even bigger risk of bounces that actually can reverse the downtrend, especially if the steep descent has been underway for some time. A stock may nearly pierce through a sturdy support level, reach the yearly low and then suddenly make a V-shaped short-term bottom or shift sideways depending upon the strength of the stock and company. These sudden changes of trend catch many short traders unaware and create larger losses than monthly and yearly highs. Sideways patterns also create sturdy support levels where large bounces can occur for the rapidly falling stock. Moving averages for long-term trendlines are another area of strong support where bounce risk is high. How to avoid bounces for selling short: Identify each area where a stock could bounce. This includes the highs and lows of sideways action from prior years. Identify long-term moving average support on weekly charts. Identify monthly and yearly the highs and lows. After you have identified all support areas, determine if this support will be weak, moderate, or strong. Weak support will seldom cause problems for a falling stock and usually a resting day, at best, will form. Moderate support can cause a bounce that can take out tight stop losses and strong support can potentially wipe out a wider stop loss for a bigger loss. It is important to calculate the point gain to the lean side when selling short because bounces can occur before the support is actually touched. And do not be fooled by the falling stock that runs just beyond the support level--often a small run beyond the lowest low is just a ‘gottcha’ sell short entry for bargain hunters. This is the area where you will find the larger reversal candle patterns. Selling short is a faster-paced trading condition. It can be more lucrative with faster profits than the upside at times, but you must have plenty of experience to watch for high-risk areas in the downtrend and a strong mental attitude that allows you to cut losses quickly.
NYSE:DACEducation
by MarthaStokesCMT-TechniTrader
BABA: Bottom's in, now what?The bottom formation is confirmed with rising Accumulation/Distribution and a nice, controlled base at the low. This is evidence of a Dark Pool Buy Zone, aka accumulation zone, where bargain hunting has occurred. But a bottom formation is a sideways pattern first, before it becomes a sustained uptrend. Resistance overhead is strong, so swing traders should be planning their exit strategies at this time, to get out soon profitably if you took the trade as it moved out of the base. Position traders will have stronger entries with lower risk when bottoms breakout to "complete." We have a market that is range-bound for most stocks, most of the time, which can be a difficult market for KEEPING profits. Bottoms provide some of the most lucrative trades, but it's important to follow a set of rules according to your intent for the trade, to get the best results. You can learn more about this at my website.
NYSE:BABA
by MarthaStokesCMT-TechniTrader
Anatomy of a Crypto Crash: How to Exit Bitcoin GracefullyBitcoin (BTCUSD) has all but invalidated the most bullish PURPLE setup that was discussed in our last update that had us looking at a nested 1-2,i-ii setup in both BTC and ETH. While officially, that would mean that we are in the GREEN alt pattern (not shown) which calls for an ending diagonal up for our final 5th wave, the RED alt pattern has become SIGNIFICANTLY more likely! This pattern calls for a continuation of the pullback that started after our April 2021 top all the way down into the 20k range! The RED alt pattern sees the entire rally from summer into November of 2021 as having been an ABC corrective B-wave rally, or a fake-out. That would make the next movement a ferocious C-wave crash down. As C-waves are always 5-wave patterns, we would look for an impulsive 5-wave movement downwards as the 1st subwave of this larger C-wave. And it appears that we more or less have that in place now in BTC and ETH! How to Make a Graceful Exit: From our Nov 10th top to right now, we can easily count a 5-wave impulsive drop that seems to fit appropriate Fibonacci targets. If this really is Wave-1 down of our larger C-wave down, expect a big Wave-2 bounce up to nearly 60k before the final drop begins. This would take the form of a 3-wave zigzag up and offer us a "gentleman's exit" to unload any holdings in preparation for the ensuing crash. However, there is a small chance that we don't get the bounce; if we break below the 32.7k - 35.9k region directly, I'm exiting my positions! That may be an indication that the 3rd wave down of the larger C-wave has already begun! In summary, don't panic, but please do have your exit strategy prepared in case things turn bearish! Know when you will sell or IF you plan to sell. If you plan to 'hodl', then commit to it! There is a small chance that we have a 5-wave impulse take us right up through our 68k ATH, which would immediately kill the RED pattern, but until we see that, stay on your toes! (I'll be publishing a similar analysis on Ethereum as well soon!) Check out my explainer video on YT! I use Elliott Wave analysis to project price levels for different assets and asset classes. EW is a form a technical analysis that is absolutely NOT based on fundamentals. Please be aware that this is not intended to act as financial advice. I am not a trained or certified financial professional. You may invest based on a strategy tailored to your own skill and risk-tolerance levels. #bitcoin #cryptocurrency #blockchain #crypto
BITSTAMP:BTCUSD
by Critique-al-Thinker
CTRE (BUY) - Entrance + Exit StrategyCTRE is a REIT focused on adult care facilities. Overview beyond the technical analysis: In the past, CTRE it has been recommended by highly experienced real estate attorneys as a long-term REIT for holding/dividends. Given the aging boomer population and focus on healthcare amidst the pandemic, this REIT stands out from others. Technical Analysis: CTRE is approaching a golden cross in the coming week. Even if history does not repeat, it often rhymes. 2 of the 3 previous golden crosses for CTRE have resulted in 60% increase over the period of several months. At the current price point, CTRE may be able to expect new ATHs in 2022.
CLong
by lydiascherr777
XRP EXIT STRATEGY 21/22 BULLRUN Afternoon people, I'd just like to say firstly thank you for all the support and for taking the time out of your day to consume my content. It's most appreciated. Diving right into the charts here we are looking at the weekly chart for XRP. As we can see for quite some time we have been pretty much moving sideways, since we broke out and retested the 3 year trendline that had formed from the previous ATH. Price has been coiling up and the longer this goes on for the more violent the breakout will be. Going by the mechanics of the market cycle for XRP, I would be anticipating a parabolic move to the upside, in line with the majority of the market during this bull run. Since price has moved above the trendline it broke out of, an entire year has nearly elapsed and price is still nowhere near its previous ATH. Is XRP dead? hah far from it. The infants in this market and those who are impatient/emotional have lost faith in XRP. Not that you ever needed faith anyway, if you truly know what you're invested in. You know that time is on your side and all you have to do is position yourself the right way and wait. Historically in bullruns XRP moves last and it moves violently. Only once BTC hits it's top and begins to retrace, will XRP begin to move. Patience is key. What we need to understand about XRP is that it is positioned to stand as the beating heart in the new financial system. When you think of Ripple you should think of Amazon. Ripple are going after all the money and will be to finance what Amazon is to everything else (lel). It is quite clear from looking at the charts, not even considering the fundamentals that have been appearing throughout this cycle. That XRP is heavily being manipulated. The SEC who's main function is to protect investors, have actually achieved the antithesis of this. This is all a show though, the SEC have been called in to stall the price of XRP whilst behind the scenes banks & financial institutions prepare. Soon the world will never be the same again and the new financial system will be here. The case for XRP this bull run is a simple one and it is all programmed into the charts. The charts never lie and until they do, I will follow my exit strategy which I will include at the bottom. We know (as illustrated in the chart) that after XRP hits its ATH it drops 95/97% and finds its bottom after this percentage drop. This has happened twice in the past, of course past doesn't guarantee future performance. But until I see the charts show me something else, this is what I will follow. Keep this percentage drop in mind because it further strengthens the case for a 3 digit XRP this cycle that I will present later. (I know, I know bare with me). Once the bottom has formed on XRP we can draw a fib from the ATH to the bottom to predict where price is going next. If you look at the 2017 run, once the bottom was formed you can lay out the fib and this presents price targets. XRP found resistance and support at the 1.272 & 1.618 before finishing its run with a move to the 2.272 (call it $3). After the ATH was hit there was a drop of around 96% to the bottom. At which point the fibs can be thrown on the chart again to plot future targets in the next bull phase of the cycle. As it stands XRP still has it's previous ATH to overcome but once we see a close above this level, I expect a move to the 1.272 ($8), 1.618 ($27) & 2.272 ($242) during this bull phase. I initially believed that we would top out at $27 dollars and go no further, but upon further looking in to the charts. I believe that it's not only possible we hit the 2.272 as the top. It's highly likely. The factor which causes XRP to go parabolic to the 2.272 will be the result of the SEC case. I believe until we have a resolution we will be playing around the 1.272 and 1.618 fibs, but once we get the news. I expect a powerful move to mark the end of the entire bull market. Most coins at this point will already be in decline. But doesn't a $242 XRP mean the market cap would be around 12.5Trillion. Isn't that impossible? Well market cap doesn't mean the same as it does in stocks for a start so using this metric as a limit to how far a coin can go is redundant. Plus it's very simple. Once the case is settled (at the height of the bull run) XRP will receive the clarity it so desperately needs. Once it gets this status, not only will all of Ripples partners go live with XRP, new investors will flood in and also XRP aside from BTC and ETH will be the only crypto in the space with clear definition. It seems a lot of money is about to pour into XRP and leave the disbelievers wondering how they didn't see it happen. They'll say we got lucky, we know luck has nothing to do with it. I expect us to get some sort of case settlement around the deadline date of 14th Jan. Worst case scenario is that we don't get the deadline and they push it back further. If this happens I expect XRP to stay above the 1.272 @ around $8. I call this one the launch pad. We will wait patiently to see how this plays out but know that as soon as the case is settled, XRP is off. Many will jump on the train too late, I have positioned myself in a way where I wont have to chase the market. I wait and let the market come to me. No emotions. To further strengthen the case that XRP is going to $242. referring back to previous drops from ATHs. XRP bottoms out around the 1.272. It never revisits its previous ATH at any point whilst finding its bottom. Has illustrated on the chart. You can see that the only price point that allows XRP to fall by around 97%, has the 1.272 as the bear market bottom and still bottom out nowhere near the previous ATH @ around $3 is if we top at around 2.272 ($242). All the other fib extensions could be the top but it would mean either XRP falls below the previous ATH for the first time ever in its history. Or the drop isn't as deep as it has previously been in the last two cycles. These are possibilities to be considered and therefore my exit strategy accounts for this. For this to happen however, XRP would have to do something it has never done in any cycle ever. Again until the charts start lying, I will follow what they show me. My exit strategy using 10K XRP example: Split holding 50/50 Strategy 1 5K XRP 10% @ $4 20% @ $8 40% @ $13 30% @ $27 Strategy 2 5K XRP 1250 @ $10 1250 @ $15 1250 @ $20 1250 @ $25 Strategy 3 Upon a retrace from $27 (1.618) to $8 (1.272) I will buy back 50% of my original holding. This will have a sell target of $240 (2.272) Bitcoin = 233K TOP XRP = $242 TOP So to clarify this is for educational purposes only. Don't forget to take profits and thanks again. Happy trading :) Yours truly, Chartster
BITSTAMP:XRPUSDLong
by PrinceParisOfTroy
7
Why shouldn't we rely on others when trading?Two traders can enter at the same price, one taking buys trade, the other one a sell trade. Only one can profit, right? Nope. The price can move both ways at different points of time from the initial entry, and both traders can profit. On the other hand, a desperate premature exit can cause both traders to lose. So, it is a matter of your own trading system. Remember, it doesn't matter if your edge is the total opposite of other ones as long as, you comply with your system. The entry, as well as the exit, should be well worked out. An exit strategy that will yield profits in the short term, can give heavy losses in the long term. So, the exit strategy is quite important.
Education
by PrabuddhaPeramuna
ZOOM VIDEO FLAG AND POLE Hello All Hope the last trading week was in the green for all of you. Back with a flag and pole on a daily and weekly time frame on ZM (this chart is on a daily). Good entry point if the daily takes support of the trend line and closes above the previous low. Stop loss just below the support trend line of the flag ( see red horizontal line ) . My entry is at the yellow horizontal line. Risk management rules fit well to a 2% rule if you start with a small to medium position for now. Can always pyramid on more while the stock is on its way up after a breakout of the resistence trend line of the flag with zero risk. ( stop loss = entry point ) or even add a trailing safe zone stop loss for profit taking. The target beautifully meets the previous resistence as you can see in the picture ( marked green horizontal line ). If you like the idea and would want more of such entries and exit ideas , please leave a like and a comment. Your support is greatly appreciated. Happy Trading
NASDAQ:ZMLong
by FoxxInvest
2
Entry and exit strategy for Bitcoin pt2Hello everyone, In my last post I've provided an update regarding Relative Strength Index (RSI) and how two overbought signals on monthly chart can be used for exit strategy in cryptos, especially Bitcoin. As you can see at the bottom of the new chart, we are quickly approaching the first RSI bubble and value of the RSI is already around 91 points (1st April 2021). This time I would like to share with you the newest version of the aforementioned analysis, which includes Reverse Pi Cycle Top Indicator. The Standard Pi Cycle Top indicaotor (i.e. 2x EMA250 / EMA111) was already very good and quite precisely indicated top of the Bitcoin bubble when those two exponential moving averages crossed. However, with logarithmic scale and reverse function we observe and blue line that has to cross EMA250/EMA111. When blue line dives and cuts through exponential movinf averages then the top of the price is ultimately achieved! Thanks to this indicator we can precisely estimate how long will it take for the lines to cross instead selling before the price peak. Another great indicator that can be used for our exit strategy is Net Unrealized Profit/Loss NUPL, however access to on-chain data is not available via TradingView and additional website i.e. Glassnode would have to be included. I believe we are very close to the top of the first RSI bubble, this information is supported by Reverse Cycle Top Indicator, NUPL or Puell Multiple www.lookintobitcoin.com and other e.g. MVRV Z-Score www.lookintobitcoin.com From my perspective, soon we are going to see higher price of Bitcoin, potentially up to $70k or even a bit more, however we should not get greedy and sell the coins before the price drop by 50-60%, exactly as in previous cases when RSI was overbought or Pi Cycle reached it's peak. Don't wait for too long with selling of your cryptos as there may be a massive sell off and exchanges may get clogged/blocked due to amount of volume and people dropping their coins at once. Regards Simon_says
BITSTAMP:BTCUSD
by Simon_says
1
AAL: Anxious about it? Here's how to proceed!Hello traders and investors! Let’s analyze AAL again! In this analysis, I’ll share some exit strategies you can use on it. Ok, as we have been saying since my first analysis, in the end of January, AAL finally hit its natural target at $ 22.80, and it is trading even above it today! My analyses on AAL were all public, and the link to them are below this post, if you are curious. How to proceed now? Well, it is not a buy opportunity at all. Now it is time for those who bought it under $ 17 start to think about booking their profits. Since it defeated the target at $ 22.80, this could be your stop-gain , and if AAL loses this support, then you may sell it. Another key point is the previous gap, which we still don’t know its type. If it is an Exhaustion Gap , it’ll be filled quickly, today or tomorrow, indicating a sharper pullback ahead. Use it in your favor too. Or, if you have the stomach for it, wait for a clear reversal sign , like a lower high/low to book your profits, and buy it back when it hits the 21 ema in the daily chart. Speaking of daily chart: Another exit strategy is a trailing stop , and you may book your profits if AAL loses the previous day’s low. For instance, if tomorrow it loses the $ 24.21 (today’s low, so far), then just sell it. Again, pullbacks are opportunities to buy when a stock is in a clear bull trend. Don’t buy now, near a top level, and if you want to buy, wait for it to get closer to the 21 ema or one of its supports again. And if you liked this analysis, please, support it with your like ! And remember to follow me to keep in touch with my daily studies. Thank you very much.
NASDAQ:AAL
by Nathan_The_Finance_Hydra
6
PLUG: 3 exit strategies you can use now!Hello traders and investors! Let’s see how PLUG is doing today! The stock is performing amazingly well, and so far, we didn’t see any reversal or pullback signs around. And I got some strategies you can use here if you are anxious or afraid of a pullback. First, I would put a trailing stop on the previous day’s low, and if PLUG closes under it, I would just get out of it and wait to buy back after a pullback to the 21 ema. Or I would use the hourly chart to guide me: As long as we don’t see any bearish pattern around, we are fine. PLUG is in a strong bull trend, doing higher highs/higher lows, and you could wait for a bearish pivot to appear to sell your position. Or you could wait for it to lose the 21 ema in the hourly chart , if you are more anxious. But since PLUG is in a very strong bull trend, if it drops, I would only see an opportunity to buy more. Pullbacks are different from reversals, and just like Dow stated on the 6th tenet of the Dow Theory: The trend will persist until a clear reversal occurs. If this analysis helped, remember to follow me to keep in touch with my studies, and please, support this idea if you liked it! You’ll find more analyses on the links below. Thank you very much.
NASDAQ:PLUG
by Nathan_The_Finance_Hydra
5
TSLA: The split is here! Now what?Hello traders and investors! So, today is the famous split! But what are the consequences of it? Well, first and most important, splits don’t change a company’s fundamentals . It is the same old Tesla. Splits are just a strategy a company uses to increase the liquidity of its stocks and made it more accessible to the public. More than $ 2k on one stock is quite expensive, so, let's split it! Yes, more people will have access to it, but the speculation will increase as well . In fact, this is one of the reasons why Warren Buffett never did splits on the BRK.A stocks, which are now costing $ 320k! He wanted to keep speculators out of it. But in the end, there’s no big deal here. You may think that more people will buy it, rising the price of the stock - or you may say that since more people will buy it, the institutions will take opportunity to sell their stocks to the public, book their profits, and it will drop next. It doesn’t matter in the end, anything is possible. Let’s just stick to the technique, ok? Tesla is just doing a pullback to the 21 ema in the hourly chart. The trend is still bullish, and nothing changes. This pullback is the reason why the daily chart is so bearish: This is a Dark Cloud Cover, and if triggered, a sharper pullback might occur. But it could be just the hourly chart resting, so we need to wait for more confirmation. Again, I’ll say that the most important point right now is the purple line , which is the previous top / resistance. If Tesla closes under this point, then you may just book your profits. Now, the weekly chart: There’re no bearish signs around. Triggered what look like a Pennant chart pattern, and the weekly chart don’t tell too much. I would just rely on the daily chart now for an exit strategy. And if you liked this analysis, please, support it! And follow me for more daily analyses! Let’s see how Tesla will behave after the split! These are the scenarios for the stock right now, and I hope this idea helped you. Recent public trades (links below): XP: +30% AAPL: +10% LB: +45% UKOIL: +62% Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate! BECOME A MEMBER! Remember to follow me , I’m a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). Like this idea if it helped. Thank you very much. * LIKE this idea and FOLLOW me, because: - Here, you will see clean charts; - Trades with clear risk management; - The best of Dow Theory, Price Action and Candlestick psychology; - Chart patterns with statistics. * * My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
NASDAQ:TSLA
by Nathan_The_Finance_Hydra
10