GoodVibe Community Call - Do you want to dance?
If you missed the last blog when we called (two days ahead of time) for an incoming top after first making a fresh new high, then you got another chance for another good risk/reward setup. The following is not a short call. It's a setup that can be used by both bulls and bears depend on where they think the next move is going to be.
Please, before you jump in thinking we offer you a financial advice or something to trade, read this first. We are not. We're trying to bring to your attention what is making us money in hope it adds value to your thinking. Nothing else and nothing more. If you're not familiar with our community, please don't judge us positively or negatively before taking amble amount of time and due diligence.
Let's see what we have...
Last call we pinned the top price @ 955.69 short 54 cents of the actual top @ 956.23 and on 1:29 PM short 1 minute of the actual time top of 1:30 PM (see comment #10 here). We can't guarantee the same every time though we do this with more frequency than mere chance. For this call updates, you can follow the live updates to the minute in the lounge (blue chat room in the comment section below) by clicking play. We will be more than happy to answer your questions if you have any. But first did you read this? Thank you!
Now let's go into the details..
** From the charts below and according to Elliott Waves Principle we are currently in an expected UP correction wave from the DOWN wave that started @ 956.23 and ended @ 903.78
** We started the UP wave from 903.78 and we stand tonight @ 918.37
** We can't rule out or support the notion that the DOWN wave is nothing but a small correction for the advance from March that will lead even to more advance, which started from 903.78 or it's part of a larger decline to come that started from 956.23 but we can say with little doubt when it will be confirmed as either one before hand through a tight parameter that will lead to a great reward in exchange of an acceptable risk to either side you decide to take.
This is what this call about. A setup that once it goes your way, you will be able to put a comfortable stop at gain in case your trade reverse earlier than you termination target. The trades below are not day trades. They are setup to START a swing trade that can take few days to few weeks. The following numbers are not picked with no logic behind them but they are based on rules from EWP. They offer us mental and physical lines on the sand that once crossed we take actions.
Here are the details:
The chart below show you few hard numbers: 903.78 - 907.94 - 923.71 - 929.90 - 936.08 - 956.12 and yesterday's close was 918.37. I will discuss this trade from both sides, bears and bulls.
Let me say the bears' case first:
Scenario 1: If we head south first and break 907.94, aggressive bears can start a short position and timid bears can start their own after we break @ 903.78. Chances if we break 903.78, there will be little chance we head back up before more substantial downside but if we do, you can put your stops @ 922.
Scenario 2: If we head north first and reach 923.71 aggressive bears can start a short position and timid bears can start their own any where between 923.71 and 929.90 but nothing after. If the bulls take the upper hand and keep pushing up, then stops must be put in place between @ 940 and 956, wherever your risk tolerance can take.
For both bearish setups to be confirmed a decisive break below 903.78 is required and from there we will keep following the developing DOWN wave to asses a new setup to cover or add to short positions.
So how the Bulls can use this?
Scenario 1: If we head south first without breaking 907.94 but nothing below it, aggressive and timid bulls can pick that spot comfortably and put hard stops @ 903 should the bears show their vengeance.
Scenario 2: If we head north first, only aggressive bulls should take that entry point. Stops from there are 903 as well. Timid bulls should not pick that level until we top 936.08 - 942 and hold. Better even wait until 956.23 get topped.
For both bullish setups to be confirmed a decisive break above 956.23 is required and from there we will keep following the developing wave to asses a new setup to sell or add to long positions.
This trade above is for educational purpose only and meant to bring your attention to EWP as a useful but not always accurate tool to add to your toolbox before pushing that buy or sell order. You can pick SSO if you are bull or SDS if you are Bear and paper trade them and see how it went. I am trading this setup from the bear side but will strongly ask you to have your independent thinking of where you decide to go.
May mighty Mr. Market be with you! We all wish you as much as you wish for yourself and a little bit more.