KSS
Shedding weight
Companies continue to shed away all those fake Covid bucks that were pumped into the system. If a company hasn’t done so yet, then they probably will start soon.
KSS bottomed out April ’20 and the fake covid bucks sent it into an Accumulation stage.
Nov.’20 price breaks out and enters uptrend that tops out May ’21. Golden cross provide some confirmation of trend.
The trend was lost and price stops moving up and starts moving sideways. Price enters a Distribution stage and “M” top pattern is formed.
May’22 price breaks down from distribution stage, confirming ‘M’ top pattern and start of downtrend. Death cross seen provides some confirmation of trend.
Price has since entered a Downtrend channel. It currently finds itself at resistance area of Downtrend channel.
The price movement on this chart have allowed me to identify the following:
1) Price is in a downtrend
2) Price is in a bearish pattern
3) It is at resistance & support area of current pattern
Why are these things important? It allows me to identify high probability trade.
I want to trade with the trend. I also want to find trading patterns that coincide with the trend and areas that will provide entries that give me the best risk/reward value.
Price is in a downtrend, so I will look for short entry.
It is in a downtrend channel, here I’ve identified that bearish pattern.
It is at the upper trendline of the channel. This resistance area is where I want to enter to that will give me the best risk/reward value.
Entering trade short-
Entry: 26.43
Stoploss: 18.22(-16.19%)
Target: 30.71(+31.06%), 1.92 R/R ration
Shedding weight
Companies continue to shed away all those fake Covid bucks that were pumped into the system. If a company hasn’t done so yet, then they probably will start soon.
KSS bottomed out April ’20 and the fake covid bucks sent it into an Accumulation stage.
Nov.’20 price breaks out and enters uptrend that tops out May ’21. Golden cross provide some confirmation of trend.
The trend was lost and price stops moving up and starts moving sideways. Price enters a Distribution stage and “M” top pattern is formed.
May’22 price breaks down from distribution stage, confirming ‘M’ top pattern and start of downtrend. Death cross seen provides some confirmation of trend.
Price has since entered a Downtrend channel. It currently finds itself at resistance area of Downtrend channel.
The price movement on this chart have allowed me to identify the following:
1) Price is in a downtrend
2) Price is in a bearish pattern
3) It is at resistance & support area of current pattern
Why are these things important? It allows me to identify high probability trade.
I want to trade with the trend. I also want to find trading patterns that coincide with the trend and areas that will provide entries that give me the best risk/reward value.
Price is in a downtrend, so I will look for short entry.
It is in a downtrend channel, here I’ve identified that bearish pattern.
It is at the upper trendline of the channel. This resistance area is where I want to enter to that will give me the best risk/reward value.
Entering trade short-
Entry: 26.43
Stoploss: 18.22(-16.19%)
Target: 30.71(+31.06%), 1.92 R/R ration
Trade closed: target reached:
Target: 18.22 (+31.06%), 1.92 R/R ratio
Stoploss: 30.71 (-16.19%)
Target: 18.22 (+31.06%), 1.92 R/R ratio