I was having a discussion with one of my trading buddies today regarding my trade on ATCO, using a strategy I adapted from the great Jesse Livermore using a pyramiding order system along and below a mean using standard deviation and the Andrews Pitchfork method.
Shortly after the covid drop I started to build a position on ATCO after quickly identifying the reaction from the drop creating positive market structure, I used this structure to find a mean or secular trend (although a little early to call it) to start building a heavy line taking opportunity of price action using either .5, 1 and 1.618 fib levels below the secular trend.
I have had a total of 8 entries now (June12th/July13th/august20th/September25th/October29th/December17th in 2020 and jan25th/june24th in 2021) with an avg weighted entry price of 9.81.
Using this strategy has enabled me to keep my avg entry price weighted to the downside staying in considerable profit the entire time with plenty of time to react to any significant market downturn that could invalidate the current trend and be able to exit the position for a healthy profit.
In the mean time this becomes a risk free trade as I trail my stops up under major market structure and keep a close eye on the multiple trend lines within the ascending range.
Fast forward to recent structure we have hit previous local highs mid march which then created a tight descending range forming a bull flag or potentially the handle in a much larger cup and handle formation.
This has proven to be a profitable system for me to trade the equity markets looking for major trends to test previous highs and then break through shortly after a short term consolidation.
Last night we got a glorious break of that flag with very nice volume to back up the momentum or participation from the down trend and its looking very strong and optimistic now for the break from previous highs and to head back into a price discovery for 2021 above 15 dollars.
This trade although not a huge price action % gain has been one of my most profitable position trades to date, which currently sits at almost 26R (based on original account balance from entry), This has been an incredible trade to manage so far and is one of the reasons I love this strategy of position trading so much.
Shortly after the covid drop I started to build a position on ATCO after quickly identifying the reaction from the drop creating positive market structure, I used this structure to find a mean or secular trend (although a little early to call it) to start building a heavy line taking opportunity of price action using either .5, 1 and 1.618 fib levels below the secular trend.
I have had a total of 8 entries now (June12th/July13th/august20th/September25th/October29th/December17th in 2020 and jan25th/june24th in 2021) with an avg weighted entry price of 9.81.
Using this strategy has enabled me to keep my avg entry price weighted to the downside staying in considerable profit the entire time with plenty of time to react to any significant market downturn that could invalidate the current trend and be able to exit the position for a healthy profit.
In the mean time this becomes a risk free trade as I trail my stops up under major market structure and keep a close eye on the multiple trend lines within the ascending range.
Fast forward to recent structure we have hit previous local highs mid march which then created a tight descending range forming a bull flag or potentially the handle in a much larger cup and handle formation.
This has proven to be a profitable system for me to trade the equity markets looking for major trends to test previous highs and then break through shortly after a short term consolidation.
Last night we got a glorious break of that flag with very nice volume to back up the momentum or participation from the down trend and its looking very strong and optimistic now for the break from previous highs and to head back into a price discovery for 2021 above 15 dollars.
This trade although not a huge price action % gain has been one of my most profitable position trades to date, which currently sits at almost 26R (based on original account balance from entry), This has been an incredible trade to manage so far and is one of the reasons I love this strategy of position trading so much.
Comment:
Happy with the break out even though it did reject and come back down we are still holding on the formation and still a lot of buyers in so will let her run for now