The trend is your friend until the end
COST is our targetFor those of you unfamiliar to Lux Algo or Market cypher, this is a good example of how these indicators could be deployed.
Big time frame -
The environment is obvious to everyone. No indicators are needed to see how well Costco has performed over the past few years.
Market cipher B -
When looking at the daily time frame I am looking for any opportunity to jump in on the larger trend. Through the use of Market cipher B momentum wave being below the zero line, but more importantly the magnitude of the pull back to the -60 line is important.
Lux Algo (Signals and Overlay) -
I like to couple this with the Neo cloud, also recognized as the Ichimoku Cloud. simply, when blue it can be a powerful tool to follow a bullish trend. When red, it will highlight the bearish trend.
Smaller timeframe (zooming in) -
Viewing the 1 hour time frame, it show us the Neo Cloud is currently red. The moment this turns blue our expectation is the follow price until this short term trend ends. But so long as the larger and smaller trend align in the same direction, this is what we will profit off of.
When this transition occurs the week of 1/6/2025, we will look to enter with the bulls. Our stop may be dynamic as price pursues in our favor locking in profits using the Neo cloud on the 1 hour as a form of support to price.
Should the price not sustain the rally, we will use previous internal candle structures to judge where to draw the line. I took the time and drew a red dotted line to outline this.
Optimistically, should Costco manage a newer ATH before the 1 hour Neo cloud switches bearish we may still look to exit our position or look for ways to abuse the positive outcome by chasing price with a stop loss and passively wait or find ways to add to the position increasing our risk.
Time will tell and only price pays.
Good luck my friends to whom ever sees this.
Trade active
ood Morning my friends,
Another beautiful day in the market, today is January 9th 2025. Today the U.S stock market is closed to observe President Jimmy Carter. Markets will reopen the following day and we can resume seeing this play out. Over night the stock jumped a solid 1.8% in the after hours.
Stay tuned.
Cheers,
Uni.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.