Indicators used: 1) Zig Zag with 3% deviations to identify bull and bear swings (similar to the Weis Wave Indicator); 2) OBV is used to determine net volume change during the bull and bear swings (instead of cumulative volume used by the Weis Wave Indicator).
Aggressive short entry on break of low of DV (Distribution Volume) bar with significant weakness in the background. Distribution volume is a term I use to identify high volume up bars with a down close. This term I use is from my study of VSA (Volume Spread Analysis), which is a methodology based on aspects of the Wyckoff method that looks at volume, spread, and close of individual bars and waves. This is an aggressive entry because it is the second entry after the 1st DV entry on 12-19-14 who's target would have been the low of wave 5 and would have an initial stop above the resistance level above. This entry will have a tighter stop above the high of the bar, and a much deeper target at the last major support level as shown at $108.92, instead of the intermediate support level at wave 5. I would enter with 1/3 to 1/2 of a full position, then add on after a strong break of the support level at wave 5 and a low volume rally back up to the support turned resistance level with a target for the full position at the $108.92 level.
Background Weakness: wave 5 moved 6.73% on -4.1m shares, which is a larger % and volume move than both waves 1 & 3, showing increasing weakness; wave 6 moved 6.7% on 5m shares, which is the largest bull wave in the last 3, with waves 4 & 6 unable to break the resistance level set by wave 2, indicating significant supply at this level. Plus a DV bar at the end of wave 6, further indicating supply overcoming demand.
Another reason that I term this an aggressive entry is due to the potential of the intermediate support level at wave 5 holding indicating that this trading range is in reality a re-accumulation zone rather than a distribution zone.
Aggressive short entry on break of low of DV (Distribution Volume) bar with significant weakness in the background. Distribution volume is a term I use to identify high volume up bars with a down close. This term I use is from my study of VSA (Volume Spread Analysis), which is a methodology based on aspects of the Wyckoff method that looks at volume, spread, and close of individual bars and waves. This is an aggressive entry because it is the second entry after the 1st DV entry on 12-19-14 who's target would have been the low of wave 5 and would have an initial stop above the resistance level above. This entry will have a tighter stop above the high of the bar, and a much deeper target at the last major support level as shown at $108.92, instead of the intermediate support level at wave 5. I would enter with 1/3 to 1/2 of a full position, then add on after a strong break of the support level at wave 5 and a low volume rally back up to the support turned resistance level with a target for the full position at the $108.92 level.
Background Weakness: wave 5 moved 6.73% on -4.1m shares, which is a larger % and volume move than both waves 1 & 3, showing increasing weakness; wave 6 moved 6.7% on 5m shares, which is the largest bull wave in the last 3, with waves 4 & 6 unable to break the resistance level set by wave 2, indicating significant supply at this level. Plus a DV bar at the end of wave 6, further indicating supply overcoming demand.
Another reason that I term this an aggressive entry is due to the potential of the intermediate support level at wave 5 holding indicating that this trading range is in reality a re-accumulation zone rather than a distribution zone.