The target on the trade is $90, I think it's reasonable.
This is the daily crossover screen I use, it has 3 long signals, but I removed the top yellow 10-day average signal as the average wasn't needed for the trade and just crowded the chart, but all 3 windows are long. You can see NKE has been pulling back to the blue 22 day moving average, that's a possible stop to look at.
You can see the trends in the green and red arrows, but what is important is that this trade was entered as a swing trade and done so correctly. In a swing trade pullback (when you are looking for a long entry), you look at the candles that pullback with both the lowest high and lowest low and ignore the rest, that is your signal candle. Once price passes the high which is at the white trendline, that's your swing entry long. A stop goes at the low of that candle initially. On this chart, you can see two swing entries at the white trend lines with their respective stops at the red trendlines.
Looking at the longer view, my Trend Channel has caught some decent up and down trends, the red and green arrows mark stop outs and the red square marks the current Trend Channel stop, but that is for a trending trade, this is a swing trade analysis. However, should a swing trade trend, take the trend.
Since we are looking at a swing trade, I'm using a faster 3C 5 min chart which shows the accumulation taking place before the move up. It's currently trading in line with price and the first major resistance is at $90 so the target was well chosen. So long as you use risk management, this was a well thought out, and realistic trade. This member has also been on a hot streak and has had both his best and second best tradng days this week in over a year. He's realistic trade here shows some of the maturity he's gained as a trader, not swinging for the fences, but when the opportunities have arose, he's managed the trades very well. Congrats Sam.
No comments:
Post a Comment