COSTCO 1D ASCENDING TRIANGLE LONG TRADEAscending Triangles, Triangles, Descending Triangle and Ranges are repeatable trading chart patterns.
Triangles and ranges are consolidation chart patterns that can breakout either direction.
Ascending and descending chart patterns will have a directional bias depending on the previous incoming trend.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
What ever time frame you are trading this chart pattern, wait for a candle close outside of the trendline in the direction of the breakout candle. (Our time frame preference is the Daily chart).
Add volume indicator - Volume is the amount of $ that went into a particular candle or in Forex the # of trades that took place.
Add ATR indicator - Volatility is the amount of price movement that occurred. Use the ATR to measure the price movement.
When you see descending Volume bars and descending ATR line (which indicates volatility) this shows
a dis-interest in traders to invest in this pair creating consolidation which creates the chart pattern.
Trade Management after there is a breakout candle close.
1 - Position size (compare volume bar to volume ma line).
a - Breakout candle must be 100% of average volume for a full position size.
b - If 75% of average volume then ½ position size. (To find 75% of Volume
look at the charts volume settings – divide smaller # into larger # = 75%+)
2 - Enter two trades.
3 - SL for both trades will be 1.5 x ATR.
4 - 1st trade TP will be 1 x ATR.
5 - No TP on 2nd trade – letting profit run and adjusting SL to follow price.
6 - When 1st TP hit – move 2nd trade SL to breakeven.
7 - Adjust the 2nd trade SL to follow price.
*8 – After Breakout candle – if price closes back into chart pattern close trade
*9 - When breakout candle is more than 1 ATR from breakout candle open.
a - Enter 1st trade at candle close with ½ position size.
b - Enter 2nd trade with a pending limit order that is 1 ATR of breakout candle open.
c – Price should pullback to that pending limit order for 2nd trade.
d – If Price returns back into chart pattern close trade before SL is hit.
Costco
COST headed up from channel bottomCOST will likely reach $315-$320 within the next two weeks. I believe this is the bottom before a swift run up to $312.5+ within the next 13 days. If you want to maximize profit from this move, I recommend buying the $310 calls expiring November 1st for around $0.50. (where they are right now)
Costco Long - trend tunnel low pointTaking Costco to the long side. Got to know about the downgrade from Cramer's Mad Money, so thought to do technical analysis.
Cramer suggested buy at this level and technicals are supporting partially.
I prefer to see divergence in RSI but thats not there. So taking this trade by giving more weightage to fundamentals shared by analysts as Costco is least affected by Trade war of all retailers and usually in economic slowdown Costco do well good.
MACD is crossing above red
Target price is 300
Entry price is 288
Risk:Reward is 1:2
Congrats to Subscribers: Costco Up Over 26% After Alert!It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand.
MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade.
The Blue indicator line serves as a Bullish Trend setter.
If your instrument closes above the Blue line, we think about going Long (buying).
For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling).
For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts ).
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Good time to buy Costco (COST)Weak buy signal with the red+blue cross underneath the Kumo, and lagging strand is showing consolidation. This typically means "wait for more information" but we are approaching a strong support in the trend channel and momentum is pointing towards a reversal.
I'd keep a stop loss around the 238 level, but even if we unload at 247 that's a solid 3:1 risk to reward ratio.
COSTCO... another Amazon's victim? Last reporting data was ok, net sales for the quarter increased 10.8 percent, to $32.28 billion from $29.13 billion last year. Net sales for the first 24 weeks of fiscal 2018 increased 12.0 percent, to $63.40 billion from $56.60 billion last year.
The Company gained an incremental sales day in the quarter due to the shift of Thanksgiving, however pre-Thanksgiving and Black Friday holiday weekend sales fell in the first quarter this year, versus the second quarter last year. This negatively impacted this year’s second quarter sales by approximately 1.4% in the U.S., and slightly less worldwide and negatively impacted E-commerce sales by approximately 7-8%.
However, my expectation for COST is around $220.00, even after rose $170 per share at the end of 2018.
Have a Good Trading Week,
Learn how to beat the market as Professional Trader with an ex-insider!
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COST: Sell Short Potential but Strong Support at 200The Daily Chart of COSTCO Stock shows that there is some sell short potential on the short-term trend IF the stock breaks to the downside below the low of around 216. At this time, it appears that is more likely given the lack of large lot buyers in the chart patterns. Support levels show the point gain potential moving down from the current range-bound pattern.
However, COST is less likely to collapse all the way down to 50% from its all-time high. Why? Because it was never speculated to extreme highs, far from a strong support level. The furthest it can go before reaching strong support is around 200 for a bounce and 190 for serious support and risk of rebound price action.
COST: High Risk for Long Term BuyConsidering your risk is something that all investors and traders should do before trading or investing in any stock. Often when a stock displays this much risk on the long- and intermediate-term time frames, it also warns of risk for short-term trading as well. The Weekly Chart provides better perspective of the risk of buying the stock at this new all-time high price. There is no support nearby. See how many points are at risk if a correction occurs?
Trade Wisely,
Martha Stokes, CMT
Stalking for a crash. Good traders stalk 90% of the time and trade only 10% of time. Quote me. :) :)
In this screencast I run through several superhot equities on the monthly time frame.
The higher time frames are often the cause of surprises for people' on 15min - 1H time frames.
Then the end of the screencast I look at the VIX on the 2 hour time frame for signs of nervousness.
I suspect - not predict that something big is coming.
$COST Head and shoulders setting up?$COST on the intra day charts is setting up what appears to be a head and shoulders pattern. The measured move would take price back to short term support. My stop loss for the short will be the 190 breakout level. Will be watching for nasdaq weakness in the days to come to initiate the trade. Thanks for viewing and enjoy!
October 5 Earnings: Costco- Will eCommerce Ware Off Competition?Costco reports on Thursday, October 5th after the closing bell.
Heading into earnings, the company has a fairly straight forward R/R portfolio:
- Costco enjoys being a major retailer in the US with a wide array of products in multiple markets.
- The company's eCommerce capabilities are picking up steam and contributing meaningfully to revenue. eCommerce global expansion is aiding sales growth.
- Costco's membership club is expanding and drawing in customers in the US and globally.
- The overall market is a fierce competitive one, with giants like Wal-Mart $WMT and Target $TGT, among others, fighting for every consumer.
- Consumer spending, although picking up from highs, remains at a sluggish growth rate, hurting industry prospects.
I believe the pros will outweigh the cons for the expected quarter and Costco will beat expectations.
Starting Costco with a $178.00 Price Target for the post-earnings price action.
86% probability trade on Costco (Ratio Spread)
After last earnings Costco had a 14% down move. If we take into consideration last year, we have a CVPOC at around $150 Price, and in the shorter term the VPOC is around $167 (2017). That means that those prices are the ones that have traded the most and considered fair for the stock.
With an IV Rank at 67 we can sell some premium, so given the down move I sold a 3:1 Ratio spread for $1.66.
This gives us a max profit of $665 at the $150 level and if it stays above $155 price we would be making $166 at expiration.
Our probabilities of profit are very high at 86%
The trade:
Sell (3) AUG18 155 PUT
Buy (1) AUG18 150 PUT