RXT trade ideas
Rackspace Technology inc ( weekly chart ) - NASDAQ: RXT -Stock reached rebound level , where a correction formed ABC zigzag correction, ww expected it as wave (B).
History correction looks like either a Flat correction big form , or it could be a combination double formation.
Target 1st price = 12 $ - 13 $ - combination double correction OR ,
Target 2nd price = 21 $ - 22 $ - Flat correction or can increase more .
Rackspace Technology Inc. | Chart & Forecast SummaryKey Indicators On Trade Set Up In General
1. Push Set Up
2. Range Set up
3. Break & Retest Set Up
Notes On Session
# Rackspace Technology Inc.
- Double Formation
* Range Structure)) | At 2.90 | Subdivision 1
* ((Neckline)) | Wave 3 Hypothesis
- Triple Formation
* ((Neckline)) | 012345 | Short Continuation | Hypothesis
* Support)) At 2.20 | Subdivision 2
* 0.786 & 3)) | Wave 5 | Subdivision 3
Active Sessions On Relevant Range & Elemented Probabilities;
London(Upwards) - NYC(Downwards)
Conclusion | Trade Plan Execution & Risk Management On Demand;
Overall Consensus | Neutral
Long RXT @2.396-oversoldThis one is one I'm excited about after crunching the numbers. I haven't traded it before but it has produced some eye watering paper numbers in backtesting.
Usual setup - oversold and keep adding until it isn't. Sell each lot as it becomes both overbought and profitable.
Here are the numbers from the last year:
28-3* (the 3 are from the last 3 trading days that are still open)
AVERAGE return per lot: +12.7%
MEDIAN return per lot: +11.1%
Total 12M return: 3.94x lot size
Max lots held at any point: 5
Avg. hold period per lot: 9.4 trading days
Median hold (half the time it's less than this): 6 trading days
This is the one that is mind boggling...% return/lot/day held: +1.34%
That number is a HUGE number. Most GOOD ones are between .5% and .9%
That's every dollar traded making an average of 1.3% per day. That's the average from all 31 trades, including the 3 that are underwater at this point.
BTW, The blue line on the chart represents an average gain from the initial trade level. I'll keep posting updates as I add to the position or sell.
As always, if you trade on my ideas, that's on you. This information is for educational and entertainment purposes only.