Risk to Reward ratio is the QUEEN - Number two reason to tradeWhen i want to take a trade, I look for ODD ENHANCERS, the more odd Enhancers I have the more likely the market will turn in my favour.
One of the most important Odd Enhancers is proper Risk to Reward ratio. Rs/Rw means how much am willing to risk if the trade goes against me, divided by how much Reward is trade gives if it is profitable. A properly weighted Rs/Rw ratio yield a factor of 4 to 5.
In this trade on QSR traded on the NASDAQ, am risking a little over a dollar for a reward of four dollars & much more if the new formed downtrend continues.
now, we got the Rs/Rw ratio out of the way of teachings. why would i Enter this trade. If Risk to Reward is the Queen then identifying the Trend is KING.
You must of heard people say, trade the trend, swim with the current not against it & you flow.
- first step Identify the Trend on any longer term chart. (there are many techniques for this)
- Second step trade the trend corrections on the Short term chart (this is the chart I use to identify my ENTR price & my STP losses)
This is it! identify the trend on the bigger picture & look for opportunities to join.
In this Trade. according to my Trend identification technique, I observed the Week (W) long term trend to turn into a downtrend after it broke the last LH of the previous week uptrend. now the trend is down. am looking to short.
I ENT my SHRT at 59.80 with a tight STP above 61.03 my risk is tolerable when compared to my Reward if the downtrend was to continue. well, it is struggling. my trigger STP was triggered & am out. simple as that. I will take my small loss & walk away holding my head high in respect for my trading plan that does not work all the time but works enough that i can make a living doing this.
QSR
ASX:DMP - Stage 4 uptrend started- dominosStage 4 of growth has just started....?
History tells us that....
Domino's Pizza Enterprises Limited (DMP) is engaged in the operation of retail food outlets and franchise service. The Company holds the exclusive master franchise rights for the Domino's brand and network in Australia, New Zealand, France, Belgium, the Netherlands, Japan and the Principality of Monaco. The Domino's brand is owned by Domino's Pizza, Inc. which operates within the Quick Service Restaurant (QSR) pizza segment of the fast food market in Australia and New Zealand.
QSR LNG position- STP triggered. Took the LossBasic Price coming into DZ. Good odds . Price fluctuated in DZ & close below it. STP triggered. Loss carried
LONG on QSR - Took Loss
LOSS Taken 0.88
Why I took the trade?
The long-term (M) in uptrend
The trade chart(W) is in correction.
The price coming into the DZ (D) unbalanced selling. Outside BB bands
Low Risk as ENT was near the bottom of DZ
TOOK my Loss - am proven wrong.
for 2-3 weeks price stayed in the DZ, slightly breaking above it & closing.
Yesterday Price closed below the DZ
Am out.
Malaise for > quarter: Telecoms, Fast food, and Consumer staplesThese important sectors have not been booming for over a quarter (no Robinhooders around these sectors, and not worth a Reddit meme) -
- Telecommunications: T, VZ, TMUS
- Quick service fast food restaurants: MCD, YUM, WEN
- Consumer Staples (ETF is XLP): household products PG, CL, CLX: food MDLZ, GIS
QSR just more explanationsame expectation as before. just more accurate. based on this more chance to decline technically but fundamental Q1 report can change the game as well. both scenarios are visible in the chart.
1st we had a cup and holder pattern
2nd it increased on the elliot wave as expected from cup and holder
3rd both together put the pattern to the rising wedge
4th correction happened in the wedge so far. this much (4% down today) was more than 90% chance to happen from yesterday and nothing special
5th now it is more rejection than going up. but depends on the Q1 report.
sinosical pattern is also matching the high and lows
* bollinger ave band, horizontal support and fib retracement levels can act as a support in case of fall
YUM BRANDS BUYING WENDY'S..? SEE ARTICLE..GREAT FIT!Hello folks..
This morning we were sent an article from a Wall Street friend dated December 27, 2019, approx. 4 weeks ago.
Here's the link...
www.restaurantbusinessonline.com
Wendy's is in an uptrend moving into earnings.
YUM Brands, with a market cap of over $30 Billion, could buy Wendy's without hesitation.
Keep a close eye on Wendy's because YUM buying Wendy's we feel would be a great fit.
Best of luck with your trades!
$QSR Is A Smart Long-Term Play$QSR owns, operates, and franchises quick service restaurants under the Tim Hortons (TH), Burger King (BK), and Popeyes (PLK) brand names. The company operates through three segments: TH, BK, and PLK. Its restaurants offer blend coffee, tea, espresso-based hot and cold specialty drinks, donuts, Timbits, bagels, muffins, cookies and pastries, grilled paninis, classic sandwiches, wraps, soups, hamburgers, chicken and other specialty sandwiches, french fries, soft drinks, chicken, chicken tenders, fried shrimp and other seafood, red beans and rice, and other food items. As of December 31, 2018, the company owned or franchised a total of 4,846 TH restaurants, 17,796 BK restaurants, and 3,102 PLK restaurants in approximately 100 countries worldwide and U.S. territories. Restaurant Brands International Inc. was founded in 1954 and is headquartered in Toronto, Canada.
In recent news:
Burger King (NYSE:QSR) restaurants are adding the Impossible Whopper sandwich to its well-known 2 for $6 promotion.
The development is another move forward for Impossible Foods (IMPF) into the mainstream.
We also expect the Popeyes chicken sandwich to drive same-store-sales.
Notable shareholders include Bill Ackman's Pershing Square with a 5.05% stake and Warren Buffett's $BRK with a 2.83% stake.
As always, trade with caution and use protective stops.
Good luck to all!
QSR Potential Long Stocks Swing Trading IdeaUsing our ElliottWave Indicator suite for the TradingView platform we have put together a long term stocks swingtrading opportunity for QSR on the Weekly timeframe.
The wave 4 profit taking pullback has found support in our Red probability zone, which represents a 75% probability that the price will return to the main bullish trend and hit our automated elliowave 5th wave target zone now printing in Blue on the chart. The pullback on our Elliottwave Oscillator during the wave 4 is between our 90-140% criteria.
Our False Breakout stochastic indicator shows yellow dots in the overbought zone, denoting strong bullish momentum. then when, during a wave 4 pullback, the stochastic pulls back against those false breakout dots and crosses in the oversold zone, it is highly likely the stochastic will return to the strong overbought zone.
All of these factor using our extensive Elliott Wave Indicator suite represent a high probability long swing trading opportunity on QSR.
We must still, however, be conservative on the entry due to the deep pull back into our red zone. Therefore a long entry at $71.45 is considered safe with a stoploss of 63.65. This still give a risk to reward of 1;1.6 to our automated target zone at $84.
Learn more about our Elliott wave Indicator Suite for the TradingView Platform >>HERE<<
QSR - Downward channel breakdown short from $64.87 to $56.57QSR was running within an upward channel formation for a while. However its getting weaker, and Twiggs money flow showing strong divergence.
We think it has good down-side potential from here.
* Trade Criteria *
Date First Found- November 9, 2017
Pattern/Why- Upward channel
Entry Target Criteria- Break of $64.87
Exit Target Criteria- $56.57
Stop Loss Criteria- $66.47
Please check back for Trade updates. (Note: Trade update is little delayed here.)
QSR - short if it reaches to $44 area & show weakness. QSR seems forming a head & shoulder formation. It crossed down MA 50 & 1000, and moneyflow is down to the negative side. WE think it can decline to 37 or lower.
For ideal trade entry we would like to reach to 44 area to make its next shoulder formation & decline from there. For trade we would consider Jan/April 45 puts when it reach to $44 area.
You can check our detailed analysis on QSR in the trading room/ Executive summary link here-
www.youtube.com
Time Span: 9:30"
Trade Status: Pending