CCC3 trade ideas
COCA-COLA 1D RANGE TRADESRanges are repeatable trading chart patterns.
Ranges are consolidation chart patterns that can breakout either direction.
Each chart pattern will have defining trendlines of the support/resistance levels creating the pattern.
Whatever 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.
COCA-COLA CO: PRICE WILL STILL FALLING DOWN AFTER RANGE BREAK ??We observe in the chart a great correction of the upward trend of this asset just with the coinciding period of the covid during the month of March of this year, probably due to the global logistical problems derived from the situation.
Coca cola is always a safe bet since one of its shareholders is called Warren Buffett, here is the portfolio of W. Buffett in percentage:
List %
AAPL Apple Inc 25.78
BAC Bank of America 11.69
WFC Wells Fargo 10.51
KO Coca-Cola Company 8.35
KHC Kraft Heinz 8.11
AXP American Express Company 7.30
USB U.S. Bancorp 2.98
MCO Moody's Corporation 1.86
GS Goldman Sachs 1.86
JPM JPMorgan Chase & Co 1.82
No Microsoft !!!??? i dont believe that...hahaha
The price is boxed in a very narrow lateral range, it is as if you are waiting for some event to jump in one direction or another. In this scenario it is very difficult to determine what the price is going to do in the coming days, if it breaks the range downwards, things get complicated because there could be a 100% correction in AB = CD and see the price at historically low levels above 18.
If the price breaks the range by pushing up with strength and volume then he's likely to look for the historical top in a zig zag shape, if not and he do it in a V-shape then I very likely see a bearish bounce at that resistance level
$KO in a higher degree correction completing Wave B of B
Disclaimer: I have been trading in the markets for about a year. After several months of charting various instruments, my eyes have gotten trained to recognize different candle formation patterns like Bear & Bull Flags, Head & Shoulders, and others. This was good. But, not enough for me to accurately forecast the next following moves and market structure after these patterns had been completed.
For me my next evolution as a Trader came with a more fine-tuned approach to Market Structure, The Elliott Wave Theory. There are two books that were recommended to me as I started this journey.
1. Elliott Wave Principle: Key to Market Behavior by Robert Prechter and A. J. Frost, www.elliottwave.com
2. Visual Guide to Elliott Wave Trading by Wayne Gorman and Jeffrey Kennedy, www.elliottwave.com
I am still learning. I accept the fact that my analysis may be wrong. But, these are my charts as I continue my journey. I am open to all feedback on my analysis as I continue to improve.
COCA COLA I am looking for buysHi traders:
KO is looking very good for mid/long term buy.
We see the price had a massive dropped from Covid, and strong bullish impulse up, forming a larger correction.
When we dropped down to lower time frame, we see a potential rejection off the bottom of the structure,
and forming a continuation correction.
I will wait for confirmation of a completion of the structure, and look for buy setups.
Traders, if you like my analysis, please like, follow, and comment. I welcome all kinds of feedback, suggestions and opinions, thank you.