Tom_Killick
Long

WFC: How to trade this like a pro

NYSE:WFC   WELLS FARGO CO NEW
59 0 1
Friends,

An opportunity for trading tomorrow, PROVIDING TRADING OPENS HIGHER TOMORROW.

Been a long time since I posted, I've been so busy reading and adapting other trading ideologies as I hope to expand my horizon on trading as much as i possibly can.

I'm a fond trade of the candlesticks for trading, and I always have been. And to use them in this set up shows their optimal usefulness. (even though I feel they're useful all the time)

This pattern is a basic one, probably derived off the Fibonacci ABCD pattern , not using the same measurements but the concept in nature. This pattern shows the first impulse move, which i've labelled with a green line, after of which we have some consolidation trading, which supported dead on the 20 ema .

What does this tell us? Quite simply that traders don't want to see the stock go below the 20 EMA so it's been used as a bounce off. After wave 1, we had some consolidated trading, which is curling up. What does this indicate? This shows us the stock has intention of moving higher to the upside. We've had wave one, and then a pullback of more indecisive trading, only to come up to the top again. I know if this stock breaks above the yellow semi circle (as drawn) then traders simply are showing that this stock isn't done moving yet and it's going to go into continuation.

A realistic minimal target if it breaks above this semi circle is the same length of wave one, making this very simple. How do I know if I'm in the wrong trade, well the market will open negatively tomorrow failing this pattern, or the candles won't stay above my trigger line (8 exponential moving average ).

But considering we had a bullish kicker signal today/Doji gap up, we can see the bullish sentiment definitely exists.

Where should my stop loss be? Well if this curved trading was the signal to get into this trade, any break below it would symbolise the signal was void and the buyers aren't around anymore. I can be even more detailed by saying, if this bullish kicker signal gave me the hope this pattern was going to work, any close below it would be a sign that the kicker signal has seen the buyers come, and go. Due to using this very simple concept, I'm able to have a risk reward ratio of 5.26, and that is me being generous to the downside.

This makes this trade very simple for us now. If it opens positively by any amount tomorrow, buy immediately.

Candlesticks , eliminating emotions.

Good luck traders
Tom





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