Have you ever experienced having a good setup but psychologically you still doubt if you want to enter the trade due to “external factors” be it news, social media, or other people’s analysis?

Well, the easiest solution to reduce noise is to turn off your Facebook or Twitter and just open your charting tool.

If you’re an end-of-day (EOD) trader and you want to increase your edge while at the same time gaining “peace of mind” after entering a trade, then you’ve come to the right place.

I will share to you some tips on how to interpret EOD moves.

1. Analyze the order table an hour before the market closes

The order table goes by many names: some call it order book, bid/ask table, or market depth.

There is a way to look for supports and resistances intraday without relying too much on the price chart that you can watch here (this is very useful for trading IPO’s as well if you plan on scalping intraday)

2. Enter before the market run-off

It depends on the situation but most of the time I enter before the run-off. Why did I choose before and not after?

If your trading platform has a feature that can project the closing price of a stock, then you can also use it to your advantage whenever you want to enter before the closing bell.

However, entering before the market run-off is somewhat a double-edged sword as there are stocks that suddenly buy up or sell down when the market’s about to close.

So you have to keep an eye on possible news or catalysts that may make or break a stock.

Hope this post helps and feel free to share your other advice.

A lot of trading resources nowadays are so obsessed with candlestick chart patterns and strategies that they tend to neglect this type of chart and it’s also the simplest to look at.

What if I told you that all you need in trading the markets especially if you are counting basic Elliott Waves is actually a line chart?

One thing that I realized while plotting my Lazy Elliott forecasts using this retracement is that whenever I use the candlestick chart view, it can be prone to misconceptions.

Other analysts may critique your wave count telling you that it’s not valid but in fact it is!

Let’s take a look at this example:

I understand that some of you might say that it’s not a valid count at first glance because one rule in counting an impulse wave is that Wave 4 cannot overlap Wave 1.

This example can be misleading to others because they are thinking just because the label overlapped or the price visited the area of Wave 1 they will conclude that it’s not a valid count.

But what happens if we switch it to a line chart:

This is where the saying “price is king” applies. As you can see, when switching to a line chart view, your only concern are the closing prices. Look closely at the chart again, clearly you could see that there is no overlap!

So as Lazy Elliotticians, how can we plot the retracement on a line chart and use it to our advantage?

For spotting an Impulse Wave:

1. Find the lowest high and the lowest low that you could find.
2. Draw the retracement from your chosen high and low from top to bottom.
3. If you see the price bounced off an area of Wave 2, it is a qualified lazy plot.
4. Count/forecast the remaining waves.
5. If you observe that your forecast is breaking an Elliott Wave rule, go back to Step 1.

As for the remaining waves, there are a couple of ways to count this.

For spotting a Corrective Wave:

1. Find the highest high (Assumed Wave 5) and the highest low (Assumed Wave 4) that you could find.
2. Draw the retracement from your chosen high and low from bottom to top.
3. If you see the price bounced off an area of Wave B, it is a qualified lazy plot.
4. Count/forecast the remaining waves.
5. If you observe that your forecast is breaking an Elliott Wave rule, go back to Step 1.

Let’s see where it will go. Usually the price should correct either up to 100% or up to 161.8% beyond, if it’s a deep correction.

Usually when I see something like this, I would recount it especially if it breaks down 261.8%. You might want to rethink this chart and flip the wave order, like this:

You can do this in currency pairs as well depending on where your bullish bias is but I leave that to you.

And for the last step that applies to both impulse and corrective waves: consult another indicator (e.g. PSAR, Moving Averages, RSI) for your preferred trade setup, if necessary.

To summarize everything that you just read, here’s a flowchart. Now quit slacking off and start practicing!

Hello first stock analysis blog post of 2020!

For this week we take a look at the possible movers in the Philippine Stock Exchange.

As we can see, the index is still on sideways and given its close today, it is possible that we might see it revisit 7,500 levels for the next couple of days.

If we actually observed the movement from November 2018 to February 2019 we had a brief bull run.

For this blog post we’ll be focusing on bounce plays and pullback plays. Don’t expect too much for breakout plays since the current sentiment of the entire market has been quite bearish for this week (we dropped like 129 points for today)

With the phase one trade deal signing between US & China going on this week, we may see some stocks react for the next couple of days.

Time to spot some outliers!

Here are my top 3 stocks for the week using smaller timeframes since we are looking for short-term opportunities for us to go long (so when will shorting be implemented here in the Philippines huh?! 😂😂😂):

$ACEX

If you managed to position last month (December 2019), you should’ve gotten some pretty decent profits already and at least got out near 9.00 – 10.00.

Right now, it is trying to find a bounce point and we see that it closed with the doji and might hold the 8.00 level.

These levels are probably the “sweet spot” if you want to play its potential bounce.

$DMC

Well for this week, DMCI Holdings got pretty battered probably because of these headlines that popped out over the weekend…

…which actually resulted to this:

As long as the price holds at 5.80 – 6.00 the potential bounce play is still intact.

$TECH

Congratulations to those who played this stock last week and for those who caught our Lazy Elliott impulse forecast for this stock.

Fundamental wise, I don’t see much going on with the PSE Edge for this stock, this analysis is purely speculative for the moment. We’ll know tomorrow what direction this stock will take us (US & China, do your thing 😂)

If we look at our Lazy Elliott corrective forecast for this stock, we might see it revisit near 6.00 so set your risk management if you want to play this one.

If you read our Lazy Elliott guide you already have an idea what ideal levels you should look at to take profits (the answers lie in the color grouped lines 😉)

Good luck trading poets!

People nowadays don’t realize that whatever you’re constantly doing can be a means for you to create a living out of it.

So for this post, I decided to share my insights about the similarities of busking and trading since it’s my current lifestyle and I have come up with some guidelines below.

Anyway, I might miss out on some guidelines, but these are the most important, to me at least.

And if you’re planning on going full-time on busking or in trading, make sure you have saved a lot of money (in my case I saved at least 1-2 years worth of living expenses) so you won’t get burned out, physically, mentally, financially. This is also your time to find other skills that you think will make you happy in the long run aside from your main passion.

Better be prepared for anything life will throw at you.

Let’s begin!

Busking

1. Before performing at any location, make sure that the spot that you want to perform on is safe. Be observant. Check for any passage points where you think a lot of people will pass by. Spotting intersections can generate a higher chance of returns. Also check if there are people around passing by because if there aren’t any, you should’ve just practiced at home.
2. Record how much money you received for the day so that you will have an idea when is the best time to perform in that particular spot especially if you’re starting out. Reduce your expectations as well on the first few days. Just because you practiced well doesn’t mean you’ll get a guaranteed return in that specific spot. Again, be observant.
3. You don’t have to perform in public for the whole day or even every day. Just choose specific days, time and duration that you think will give you the highest returns based on what you experienced performing in that specific spot. Time is precious in this endeavor, that’s why if you plan on going over your usual routine, make sure you offset in the next days. Whatever money you recorded on your previous busks will give you the answer.
4. Use paydays, weekends and holidays to your advantage; these are the days where usually a lot of people go out.

Trading

1. Before trading any stock, commodity, currency pair, etc., make sure you have a plan. Also check if there are a lot of people participating because if there aren’t any, you’re just wasting your time.
2. Record all your trades, especially when you’re starting out. Don’t expect that you’ll get all these setups right away. Better to focus on one first, whether be it swing, breakout, bounce plays, etc. Reduce your expectations as well on the first few months. Just because you practiced well doesn’t mean you’ll get a guaranteed return in that specific setup. Again, it’s you against your own psychology.
3. You don’t have to trade everything you see especially if it’s for the sake of trading. Spot your setup niche and trade only those setups that you’re comfortable with. Since time is also precious, plan a time stop for every trade just in case your plan took longer to materialize than expected. Your trading journal will also give you the answer.
4. You can use disclosures to your advantage but don’t put too much weight on whatever news you heard and just focus on how the technicals will react and execute your trades accordingly.

The best part of these two activities is if you perform well here early on, you get to have more time for your future self to do other things that you’re so passionate about. 😂

Here are some busking data that I recorded to give you an idea how much you can gain from doing this based on my nightly routine (spending 1 – 3 hours worth of your time on average and assuming you already have an idea when and where to busk and you do this consistently for more than a year)

You can download Monefy on the App Store (for iOS) or Play Store (for Android) if you want a budget tracking app for your smart phone (not a paid advertisement 😂)

I hope this post motivates you, feel free to share your other guidelines. Now go out there and find your passion!

“It’s alright to WORK for a LIVING, just don’t forget to LIVE.”

Hello reader, for this post I am going to show you how to combine the Relative Strength Index (RSI) and Average Directional Index (ADX) to spot signals on when to enter a trade.

Back then, I would use the Directional Movement (DMI) indicator for confirming trend direction aside from what the price action is giving me but when I think about it, more lines f**k up my decision making. So here’s what the transition looked like. 😂

Sorry for startling you reader, let me clean this up so you could get that sense of clarity.

I will be summarizing it in this quick guide below (with chart examples of course! 😁✌)

This template is more ideal for spotting LONG opportunities. Shorting opportunities using this template show up rarely (at least in the PSE, except when you’re trading more volatile markets like Forex and Crypto) so it’s best to use price action for spotting short opportunities along with either the RSI or ADX.

The indicators used are the following:

• Donchian Channel (10)
• Parabolic SAR (0.02, 0.02, 0.2, Default)
• RSI (14, Default)
• ADX (14, 14, Default)
• Optional: MA/EMA 10/20/50/100/200 depending on what trend you want to filter

Personally, I rarely use MA’s now because of psychological barriers with my trade planning.

The Donchian Channels should be enough already to what levels I should be looking for (+ Fibonacci Retracements if I’m going to apply my lazy approach Elliott Wave Theory which I would probably save for another post)

And now some chart examples so you could see how it’s done:

Oh and if you want to level up your analysis skills using this trading template, you could try out reading forex charts for fun like this example below:

I hope this post helps with your trading journey and good luck!

Happy backtesting! 😁

This post is inspired by hitting 3,000 followers on my Facebook page and closely hitting 1,000 subscribers on my YouTube channel. 😂

Okay, before you lash out think for one second: I did not say Fibonacci is useless. 😂

It’s more of a recipe for disappointment to be honest.

Oh wait, there’s also what you call Fibonacci extensions but guess what? I don’t use them as well. 😂

If you’ve been following me ever since I started this trading journey, I like doing things out of the box.

So with that said, I will share to you a Fibonacci Retracement trick that I use that’s specifically for anticipating 52-week highs and All-time highs (or breakout plays from these highs)

I like to call it: Limbo Fibonacci.

How to plot this is actually easy.

So here are the steps:

1. Do the art of lazy spotting support and resistance assuming that you read my post regarding this.
2. Measure your chosen support and resistance. Make sure it’s at least over 20% and the trade range should be at least more than a month. This range is actually enough regardless of your trading profile (Swing, Momentum, Bounce, etc.)
3. Plot your Fibonacci Retracement with your chosen support matching the 100% level (Inferno) and your chosen resistance at the 61.8% level (Limbo)
4. Enter at the break of Limbo or within Inferno (78.60% – 100%)
5. Take profits at your chosen Fibonacci levels:
   • Limbo (61.80%, e.g. if you entered from Inferno and you wanted an early exit)
   • Earth (50%)
   • Purgatorio (23.60 – 38.20%)
   • Paradiso (0.00 – 23.60%)
6. Stop loss depends on your risk tolerance but it is usually a couple of points below your chosen entry level.
7. The Limbo Fibonacci becomes invalid if the price breaks down the 100% of the Inferno level.

Here’s what it would look like if you plot it and we’ll compare it against a Fibonacci extension plot and decide for yourself which one looks more convincing for you. ✌

Let’s turn back the clock, take a look at $ALLHC for example.

This stock recently broke an All-Time high this year.

Say you wanted to enter when the price breaks the All-Time high. So you would probably plot your Fibonacci Retracement like this:

Now let’s try plotting the Limbo Retracement…

Let’s say the stock that we’re looking at seems to be far away from the All-time High (ATH)

Let’s see what happens after…

On the other hand, the All-time high did break out but you notice it almost reached the Earth level (50%) and almost resisted to that level so probably you should’ve thought about leaving the stock at this point (e.g. cut loss below Limbo or sold near Earth)

Let’s have another example, here we have a chart of $WLCON using the usual way of plotting the Fibonacci (with extensions again of course)

Now let’s see what happens after…

If you want a trend-based Fibonnaci, you might plot and plan it like this (if you’re an Elliot Wave trader you might be fans of using these. Don’t bash me for this, I’m still working on the next blog, lol)

Now let’s use the Limbo Retracement again using the same example. 😂😂😂

Q: Can I use this strategy even if the price is not reaching 52-week highs/all-time highs?

A: Actually you can, but plotting this with existing past prices looks redundant from my perspective.

However, this method can also be useful if you don’t want to be obvious on what Target Prices (TP) you are attempting to reach.

Let me show you what I mean.

If we try to explore the past chart data…

Using Fibonacci isn’t that bad, as long as you know how to follow your trade plan and react accordingly.

Whether you’re using Moving Averages, Elliot Waves, etc. it doesn’t really matter as long as you know where to enter and exit.

And there you have it, I hope you learned something new today!

P.S. Be careful if you ride a stock up to Paradiso, you don’t wanna become like Icarus (unless you’re shorting 😅)

Your Trading Poet,

Alex Corner