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This thread is being created to begin to build a Type 2 Buy or Sell data base of user ideas. Just to start the thread we begin with an aggressive trade idea for those who are always on the look for short-term trades.
This stock, Morgan Stanley (MWD) has been beat up a little the past week or so. I did a quick cross referencing check of the higher time frames, identified the immediate supports and checked for resistances.
A friend wants to buy MWD. I set up the chart primarily with this in mind. Ideally we would really like to see this first MOB continue to hold now, particularly with it being in the middle of the Timing Marks. The two methods of triggering a Type 2, the 6/4 DMA and RTC Channels are activated. Technically we wait for the cross. (Someone like me who might be a very aggressive trader might attempt a very aggressive buy at the lower end of this MOB but with a stop loss below this MOB... if stopped out I would then wait for another chance to reposition lower, later) As long as the Elliott Oscillator continues to build divergence and this MOB holds we have a legit Type 2 Buy setting up.
I also always look for other ideas as well. Trading is not stagnant, but dynamic. Hence, we need contingency strategies. My next idea would be to then wait for the lower support areas (i.e, a key fib number, the next lower MOB area where there also happens to be a "-5-" projection, and the two key daily trendline analysis supports found while cross referencing.) If these other ideas do not hold I would not be interested in taking any further short-term trades in this stock for the time being, and would just move on until the picture becomes more clear later. BUT, if these support areas hold in the next week or two, we will continue to have some decent risk/reward ratios to work with here.
The downside of this trade is we could have had a couple nice red XTL trades lately, so it is not always easy to change our trade bias. (Red XTL suggests weakness, in general.) It sure would be nice to start to see some black or blue XTL bars soon. Another negative, the hourly oscillators have not yet had enough time to develop good Wave 5 oscillator divergence. We are looking at the shorter time frames only because they will help us with developing the lowest possible risk-verse-reward, and will provide a quicker buy trigger idea if it develops. We call this an aggressive trade idea primarily because the hourly really hasn't had enough time to form a better Elliott Oscillator 3-4-5 type divergence. We are presupposing the divergence is coming here.
Bottomline for today and tomorrow: if attracted to this setup like my friend and I might be, we would want a trade triggered to confirm within 48 hours, or odds are good we will have to re-position, buy back again at the lower supports between 52.50 and 52. If that short-term support window does not hold, something really is not right with this stock at this time? I would have to stand aside until a better idea forms again later.
I truly hope this is a little bit more helpful.
If you have your ideas you would like to share here how you would look at this picture, please feel free to share your ideas so we can all learn better ways of trading. I did this work quickly, so I may have overlooked other ideas. Sharing your take on this stock will help us all get better at this....... thanks, in advance.
This stock, Morgan Stanley (MWD) has been beat up a little the past week or so. I did a quick cross referencing check of the higher time frames, identified the immediate supports and checked for resistances.
A friend wants to buy MWD. I set up the chart primarily with this in mind. Ideally we would really like to see this first MOB continue to hold now, particularly with it being in the middle of the Timing Marks. The two methods of triggering a Type 2, the 6/4 DMA and RTC Channels are activated. Technically we wait for the cross. (Someone like me who might be a very aggressive trader might attempt a very aggressive buy at the lower end of this MOB but with a stop loss below this MOB... if stopped out I would then wait for another chance to reposition lower, later) As long as the Elliott Oscillator continues to build divergence and this MOB holds we have a legit Type 2 Buy setting up.
I also always look for other ideas as well. Trading is not stagnant, but dynamic. Hence, we need contingency strategies. My next idea would be to then wait for the lower support areas (i.e, a key fib number, the next lower MOB area where there also happens to be a "-5-" projection, and the two key daily trendline analysis supports found while cross referencing.) If these other ideas do not hold I would not be interested in taking any further short-term trades in this stock for the time being, and would just move on until the picture becomes more clear later. BUT, if these support areas hold in the next week or two, we will continue to have some decent risk/reward ratios to work with here.
The downside of this trade is we could have had a couple nice red XTL trades lately, so it is not always easy to change our trade bias. (Red XTL suggests weakness, in general.) It sure would be nice to start to see some black or blue XTL bars soon. Another negative, the hourly oscillators have not yet had enough time to develop good Wave 5 oscillator divergence. We are looking at the shorter time frames only because they will help us with developing the lowest possible risk-verse-reward, and will provide a quicker buy trigger idea if it develops. We call this an aggressive trade idea primarily because the hourly really hasn't had enough time to form a better Elliott Oscillator 3-4-5 type divergence. We are presupposing the divergence is coming here.
Bottomline for today and tomorrow: if attracted to this setup like my friend and I might be, we would want a trade triggered to confirm within 48 hours, or odds are good we will have to re-position, buy back again at the lower supports between 52.50 and 52. If that short-term support window does not hold, something really is not right with this stock at this time? I would have to stand aside until a better idea forms again later.
I truly hope this is a little bit more helpful.
If you have your ideas you would like to share here how you would look at this picture, please feel free to share your ideas so we can all learn better ways of trading. I did this work quickly, so I may have overlooked other ideas. Sharing your take on this stock will help us all get better at this....... thanks, in advance.
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