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For now, its going to be a wait and watch game. Of course, I haven't looked at any fundamentals, so this trade as always is purely technical.
Wolfe Wave - Google, Short by justatrader on TradingView.com
Showing posts with label bearish wolfe waves. Show all posts
Showing posts with label bearish wolfe waves. Show all posts
Shorting Google - Wolfe Waves
Its the earnings season and a time where stocks and make some big moves. I've been watching Google for quite a while. In the chart below, we see a bearish wolfe wave being formed. At this point in time, I expect price to drop to the region of 802.5 towards August 2nd, 2013.
There is a bit of risk though because the upside move shows a possible room to 920, if not more. To put it plainly, we'll have to wait for Google to reach the sweet spot between 950 - 920.55 before we can think of any continued sell off.
For now, its going to be a wait and watch game. Of course, I haven't looked at any fundamentals, so this trade as always is purely technical.
For now, its going to be a wait and watch game. Of course, I haven't looked at any fundamentals, so this trade as always is purely technical.
EURUSD - In trade analysis
Well, the EURUSD trade is shaping out to be really good. Its just amazing when you get the Wolfe waves right that the trades can be so profitable. You can read about the first analysis of this trade here and a follow up analysis here.
So here's an analysis of the EURUSD trade so far.
There were two trades opened @ Lots each.
Trade 1:
Open Price: 1.29841
Closing Price: 1.29556
Closed: 1 Lot
Pips in Profit: 285
Trade 2:
Open Price: 1.30091
Closing Price: 1.2845
Closed: 1 Lot
Pips in Profit: 526
Moved stop loss for both the trades to 1.29841
On the 4 Hour chart, the Stochastics is just shaping out to be bearish at the 80 line. On the H1 chart, Stochs is already bearish.
EURUSD Price has moved out of the 'Sweet Zone' and is on the way to reaching the target of 1.28.
As of this point, with the open trades, Trade 1 stop loss is +25 Pips and Trade 2 stop loss is at break even.
To reiterate, Wolfe Waves tell us that price will drop to 1.27445 around the 27th of March, 12PM (GMT+2).
We have the daily support level at 1.291. So at this point we will close 0.50 lots for both the trades and move the stop loss to 1.29614 which is the daily pivot.
We will let the remaining two trades at 0.5 lots each to run its course.
EDIT
I have closed 0.40 lots for both the trades. So right now we only have 0.10 lots for each of the two trades. Stops has been moved to 1.29614 with TP at 1.2745. Fingers crossed that tomorrow we'll get there!
So here's an analysis of the EURUSD trade so far.
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| EURUSD - H1 Chart |
Trade 1:
Open Price: 1.29841
Closing Price: 1.29556
Closed: 1 Lot
Pips in Profit: 285
Trade 2:
Open Price: 1.30091
Closing Price: 1.2845
Closed: 1 Lot
Pips in Profit: 526
Moved stop loss for both the trades to 1.29841
On the 4 Hour chart, the Stochastics is just shaping out to be bearish at the 80 line. On the H1 chart, Stochs is already bearish.
EURUSD Price has moved out of the 'Sweet Zone' and is on the way to reaching the target of 1.28.
As of this point, with the open trades, Trade 1 stop loss is +25 Pips and Trade 2 stop loss is at break even.
To reiterate, Wolfe Waves tell us that price will drop to 1.27445 around the 27th of March, 12PM (GMT+2).
We have the daily support level at 1.291. So at this point we will close 0.50 lots for both the trades and move the stop loss to 1.29614 which is the daily pivot.
We will let the remaining two trades at 0.5 lots each to run its course.
EDIT
I have closed 0.40 lots for both the trades. So right now we only have 0.10 lots for each of the two trades. Stops has been moved to 1.29614 with TP at 1.2745. Fingers crossed that tomorrow we'll get there!
NZDUSD - Bearish Wolfe Wave
On the 1 hour chart for NZDUSD, a bearish Wolfe Wave pattern has emerged. This is also marked with the completed wave point 5, thus allowing us to take the trades.
In the picture below, I have marked all the points. The longest wave, wave 5 can be seen with a peak at 0.83443 We have the weekly resistance level of 0.8317. Therefore trades can be taken after this level has been breached. This weekly resistance level also coincides with 23.6% Fibonacci level.
An aggressive trade would be to go short with stops set at 0.8344 and take profits at 0.82928 (38.2), 0.82769 (50) We can expect a bit of retracement at the 38.2% level. Therefore, for the aggressive trades, we could set this level as take profit zone.
For a conservative trade, we can wait until 50% of the wave is retraced on the downtrend and set go short at 0.82717 with stops set to 0.82928 (38.2%), about 211 pips risk and take profits at 0.82609 (108 Pips), 0.8239 (327 Pips) which is the Weekly Pivot, 0.82281 (436 Pips), 0.82093 (624 Pips).
In the picture below, I have marked all the points. The longest wave, wave 5 can be seen with a peak at 0.83443 We have the weekly resistance level of 0.8317. Therefore trades can be taken after this level has been breached. This weekly resistance level also coincides with 23.6% Fibonacci level.
An aggressive trade would be to go short with stops set at 0.8344 and take profits at 0.82928 (38.2), 0.82769 (50) We can expect a bit of retracement at the 38.2% level. Therefore, for the aggressive trades, we could set this level as take profit zone.
For a conservative trade, we can wait until 50% of the wave is retraced on the downtrend and set go short at 0.82717 with stops set to 0.82928 (38.2%), about 211 pips risk and take profits at 0.82609 (108 Pips), 0.8239 (327 Pips) which is the Weekly Pivot, 0.82281 (436 Pips), 0.82093 (624 Pips).
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