Coffee Short Setup Confirmed by Super Pivot Stack
This is an excellent example of a solid risk reward level trade that is typically presented in a Super Pivot Stack setup. You could place your sell order below the Stack and the stop loss above the stack which is usually a very favorable size range compared to the profit potential in the trade setup.
You can see all 4 elements that make up the Super Pivot Stack, the Monthly Pivot Range is grouped with the Weekly Pivot Range, Daily Pivot Range and the 6 Day Rolling Pivot Range.
This provides a high probability scenario, with the Super Pivot Stack dominating the upside with super resistance. All these pivots working together make it highly improbable that the market will go higher, and rather sell off.
You will also notice the magnitude of the move. This is fairly common of a Super Pivot Stack, a large move that has a lot of momentum.
On the other hand of the market does rally through these pivots and stays above for a long enough period of time, then this could be a turnaround sign. If the price has that much strength behind it, you don't want to ignore this important fact. But, time is more important than price. So watch and be sure the upside move is not a fake out move that traps you into a long position against a Super Pivot Stack...not a good odds fight you wanna be in.
Happy Trading!
You can see all 4 elements that make up the Super Pivot Stack, the Monthly Pivot Range is grouped with the Weekly Pivot Range, Daily Pivot Range and the 6 Day Rolling Pivot Range.
This provides a high probability scenario, with the Super Pivot Stack dominating the upside with super resistance. All these pivots working together make it highly improbable that the market will go higher, and rather sell off.
You will also notice the magnitude of the move. This is fairly common of a Super Pivot Stack, a large move that has a lot of momentum.
On the other hand of the market does rally through these pivots and stays above for a long enough period of time, then this could be a turnaround sign. If the price has that much strength behind it, you don't want to ignore this important fact. But, time is more important than price. So watch and be sure the upside move is not a fake out move that traps you into a long position against a Super Pivot Stack...not a good odds fight you wanna be in.
Happy Trading!
Comment:
First Profit target of 102.70 reached. Remember to trail stop losses. 105.55 might be a good price for a stop loss if you don't want to give back too much. Or 107.55 if you want to give it more room.
Comment:
The new 6 Day Rolling Pivot is displayed in the chart as shown. This has tightened up quite a bit, so a good trailed stop loss would be just above the high of the indicator at 104.55.
Comment:
Comment:
Trail stop loss to just above the 6 Day Rolling Pivot Range high, at 102.70.
You can see the benefit of trailing stop losses using the 6 Day RPR. No need to randomly pick a price level or exit early because of some reason unrelated to price action. Anyone can do this because the rules are so easy to follow...IF you have the discipline to adhere to them.
The greatest benefit is, you're allowing the market to dictate to you the outcome. You are not forming an opinion and then having to justify it.
And, the result is, the market is allowed to run, and profits to accumulate by not getting out too early. Let the market do that part. That's the heavy lifting that can be done by the market, not you.
The burden of timing your exit is eliminated.
You can see the benefit of trailing stop losses using the 6 Day RPR. No need to randomly pick a price level or exit early because of some reason unrelated to price action. Anyone can do this because the rules are so easy to follow...IF you have the discipline to adhere to them.
The greatest benefit is, you're allowing the market to dictate to you the outcome. You are not forming an opinion and then having to justify it.
And, the result is, the market is allowed to run, and profits to accumulate by not getting out too early. Let the market do that part. That's the heavy lifting that can be done by the market, not you.
The burden of timing your exit is eliminated.
Comment:
This is a cleaner chart than the previous one I put up. A little easier to see the prices without all the indicator price labels to the right.
Comment:
Lower your stop loss to 102.30, just above the trailing 6 Day RPR. Yesterday showed an outside reversal day candlestick pattern.
Trade closed: target reached:
So the 2nd profit target was almost reached at 98.20, although I did not disclose that in this space. However the swing low came in at 98.60 on Dec. 19 and this was as close as we got before the relief rally ensued. So the trailed stop loss would have gone to just above the 6 Day RPR high level 101.20 and we are stopped out on Dec. 20. Overall a good trade with good trade management and a profit of about 10.40 depending on your enry level, which equates to about $3,900 per contract or 9.3% gain.