CTO trade ideas
$COST coming to the end of a parabolic runIs this it for Costco? - consolidation for several weeks/months is what I'm expecting.
COST is tough to readIn one hand, its seems like its in an ascending wedge; accumulation is occurring more. However, a clear triple top can be seen, and bearish MACD divergence is clearly seen. 297 seems like a great value/low-risk area, but if a triple top is confirmed, we could see it dip to 270.
COSTIm looking at the channel break as possible fake out move and once back into the channel could run to the upper edge of the channel.
LONG COSTLong on breakout of ascending triangle. TP height of triangle.
Entry 307.44
Exit 298.56
TP 334
26.56/8.88 = 2.87R
More on COSTAdded extension targets...again, would be great to see a monthly break and close above prior highs
COST Cup and HandleCup and Handle. Great name. I'd like to see a break above $307.34 and a monthly close above that level. That would get me more excited for an eventual extended move higher.
Costco Breakout tradeEntry level $309 = Target price $332 = Stop loss $301.60
Costco has been bashing against the $304 level for some time and today could be the day the breakout comes.
Indicators are bullish and in reversal .
COST - Long setup Trading Room November 14,2019
Time: 01:13:25"
Entry: $307.45
Target: $335
stop loaa: $198.27
COST - trendingThis one will be short and sweet. Bullish if we stay above the white trend-line. On balance volume is the indicator I look to to gauge trend strength, it looks pretty strong at this level. I will note the double top, but I don't think its a brick wall. I will also note the slight RSI divergence, which is typically a hint to bulls that the ride is nearing its end. But I don't think we're quite there yet.
Buy at the trend-line not when price has deviated away from it. Make sure you have entry and exit parameters established prior to entering.
COST MACD divergence downLooks to be diverging down some from the double top. Picked up some 290 puts that expire November 15 for 25c.
COST Fb already done,but maybe...If there will be one more level break, i will go short, partly fixing the position on the way down.
Williams R% indicator on COSTThe Williams R% makes the read of the trend line changes easier. This chart for example, demonstrates that each time the indicator goes over the top in whichever direction it follows, a change of the trend line may occur.
Here, in point A goes from a upper trend followed by the indicator to a down trend immediately the R% shows that the trend changes is happening. The moment the R% shows that the trend is followed then we can place our order.
COSTCO 1D ASCENDING TRIANGLE LONG TRADEAscending Triangles, Triangles, Descending Triangle and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
COST headed up from channel bottomCOST will likely reach $315-$320 within the next two weeks. I believe this is the bottom before a swift run up to $312.5+ within the next 13 days. If you want to maximize profit from this move, I recommend buying the $310 calls expiring November 1st for around $0.50. (where they are right now)
COSTCO [NASDAQ] Trend Trade IdeaNASDAQ:COST
- Solid uptrend
- Good area to jump on the train
- Break and close below TL will negate the trade
- MANAGE YOUR RISK -
Disclaimer: All ideas are my opinion and should not be taken as financial advice.
Buy High and Sell HigherCostco looks like it wants to get back to it's all time high. Looking for a clear sky breakout if we can get buy a few days with no sour news events.
