Microsoft ( MSFT ) Coming into a Selling Zone

2023年3月6日

10 : 1 risk reward short opportunity potentially setting up on Microsoft ( MSFT ). These levels have been identified by our amazing algo.

Would want to see a rejection of the sellers zone on lower timeframe prior to committing to the entry. Keep losses tight beyond that, the algo has done all the work.

Please trade your own plans, although I wanted to share what the algo was seeing could setup today.

2023年3月6日

注释

We have taken the short on the 5 second chart. Algo printed another selling zone, the real volume trend was rolling over. This give the ability to have super tight stops to magnify that risk reward. Trade is at break even now.

2023年3月6日

交易开始

We have another confirmed selling zone, which will provide a barrier to our original entry and gives a good place to trail a stop behind. So we get paid even if the move does not complete as planned.

The new selling zone also gave a great opportunity to add to the short position.

2023年3月6日

注释

The algo has identified some further short term selling zones, Which is great for providing another barrier to the position. Going into the close our strategy allows some profit taking at this point as we are over 10:1 risk reward, with the algo providing an entry with such a tight stop.

2023年3月6日

注释

With the our "Real Volume Trend" indicator, we had an early warning that what looked like a strong move to the upside was coming to an end for the day. It is clear from the screenshot below that there was reversal potential from 15:10 GMT. We did not take the entry for another couple of hours. It is a super leading indicator.

2023年3月7日

注释

We have hit a support (algo identified buying zone), blue line at the bottom of the chart. We have lots of resistance above in the form of selling zones between price and our position.

We have managed to take some profit at risk reward of 28.1. Will be looking at the open to see where price is heading, if we start breaking above these red selling zones then we could be heading back to the highs. We recognise that we are swimming against the tide on this one at the moment.

2023年3月7日

注释

So this trade is still looking in good shape. New Selling Zones created during the opening 30 mins.

Looking for continuation down after a retest of newly created selling zone.

2023年3月7日

注释

Is the selling momentum coming to an end? What is interesting from this 5 sec output of the algo is the trapped sellers at the low. (Orange Zone at the low). Price has rejected a buying zone at the bottom of the chart and then trapped sellers, represented by the orange zone.

Once price traded above those seller, then their pain started and a retest of the zone was those getting out with small losses as quickly as they could.

This was a point where we took further profits as these trap zones are often the point of reversal, or higher timeframe retracements. This profit trimming point was at a 35:1 Risk:Reward ratio from the original entry.

In trading things can change very quickly and you have to be willing to change your ideas about a market. Take profits as the market offers them and hold on to your winners as long as you can. This I recognise provides a challenge and is something we could not do without the insights from our algo and indicators.

We have no idea what is going to happen next, we can see what has happened in the past. Where big money is trading, taking profits and their losses.

Armed with this information all we can do is manage risk, manage risk and manage more risk.

2023年3月7日

注释

Nice surprise to see that influx of buying volume has turned into a trapped buyers zone. This give us encouragement for continued move down.

2023年3月8日

注释

This trade is still looking in really good shape. Rejection of last red zone. Next profit target is the green zone at the bottom of this chart

2023年3月8日

注释

Market sentiment seems to be changing - trimmed some profit when this buying zone printed. First sign of a buying zone in a couple of days. Price will come back for a retest of this zone, if we bounce off to an upwards side, more profit will need to be taken.

2023年3月9日

注释

Trimming of some profit pre-market. Market at the moment seems strong and as I mentioned yesterday the algo has started to identify buyers stepping up

2023年3月9日

交易手动结束

Remaining position hit the trailing stop.

2023年3月9日

注释

Just putting my conclusions of this trade on the thread.

Was a nice base hit and recognise that she could still make further moves lower. The move from the entry was about a 9 dollar move, the average profit was 5 dollars a share with the different take profit points.

So did we bag the whole move - definitely not. Did we have a good risk reward - absolutely, with a risk reward of 38:1 as an average.

The algo did give us some strong clues yesterday which were posted, that the move was coming to the end and the identified bull zone at the bottom of this 15 min chart was in the end the reversal point.

Appreciate for many these trades are super short swing trades, trading on the lowest timeframes. For us all we care about is risk and holding losing trades though wide stops is just not for us.

This trade had a 13 cent stop and if it had failed we would have been out within a couple of minutes. This level of precision could not have been achieved without using our Diddly Algo Indicators that will be coming soon to TradingView.

The last point I would like to make was that I we were not watching the stock until the algo sent out alerts telling us it was setting up. Our workflow was to reviewed the stock, formulated a plan, told the algo to alert us and then went about finding other opportunities. Watching charts all day waiting for setup is a receipt for disaster, you have to be super disciplined not to get sucked into trades that are not part of the plan.

We won't be posting many trade ideas in TradingView, it takes a lot of time and not really sure of the value to the community. What I hope this trade journal has done is given anyone reading, our thought process on interpreting the results from the algo as they happened before, after and during the trade.

As to the power of the algo I hope that is clear to all. Picking a swing high to within 2 cents (the spread) on a 9 dollar move with a 13 cent stop. That's magic!