8/6/18 Trade Idea : Long $ZTS


Sunday 10/6/18

Set a new ‘all time’ high opening a new level.
(Error, although a new high and new level was formed, the price interval actually closed inside the prior level suggesting some bearish pressure and a reduction in momentum)
(Also note, an unconfirmed pivot high was put in place)

Buy 50 shares at $87.43
Set stop loss at $84.46
RSI is 62 and trending upwards
MACD-ML positive
MACD-SL positive
MACD-IL positive

Price set and closed at an all time high.
Price action trend change confirmed.
Maintain position and stops.
((1) error, price remains in a lower box, not as bullish as analysis suggests. Maintain position was the correct call however more caution needed)

A new pivot high has been put in with another thin bodied candle. Is this indecision?
RSI remains high at 63 and all MACDs show positive momentum.
Hold and watch next print.
((2)Lower low, lower high, look for a new pivot low to start to form and then look for pivot uptrend confirmation)

New pivot low put in place.
Monitor price action.
(Error, pivot at (2) remains unconfirmed, price closes at the same level for the third straight day)

Move stop below new pivot low at $86.41 (Correct)
(strong price expansion with close within the high level of the stock, resistance found at the top of that range. Pivot low on the 12/6 also now confirmed)

Move stop to 87.22. (Don’t know why?!)
New price level created, watch price action in relation to this level.

Inside candle appearing to test the low price of the level. Support found. (Incorrect)
Price also tested the high price of the level and found resistance. (Possibly but true)
(Look for pivot trend change.)

(Unconfirmed pivot low put in place, set stop for pivot low minus 10c; $86.60-10c = $86.50.)

Stopped out (Correct)

Trade Closed : Closed at a loss of $51.82

Although I ended up stopping out where I should have, as the pivot trend changed, my path to that point was littered with errors.  I really need to focus on and understand price action, structure, direction, levels and pivot points.

In addition the entry was weak, price expansion did not have enough momentum with the close sitting at 68% of the days high.  I should be looking for +90% to help reduce the possibility of experiencing adverse price action after entry.

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