Posted by Tom C.
It seems I get more requests for my longer term trades than my daytrades. To be sure, the majority of people come to the blog to see X's daytrading...but the people who email want to see some swing-trade examples!
AAPL is a trade I initiated earlier this year, and it has done quite well. I am holding it into 2010 but will [most likely] sell on the first weekly bearish candle setup.
AAPL turned bullish (in my mind) at the end of May when it crossed the 50% level of the previous year's high to low; for the next five weeks it tested that 50% level as support. Price formed a hammer on top of that level at the beginning of July, and I entered on a break of the hammer (indicated by the black arrow). As I stated earlier, I am holding the position into 2010 and will plot my new Fibonacci lines over 2009's low to high*. I will watch to see if AAPL makes new highs and moves toward the FE of the new, 2009 Fibonacci lines (my target to close the position), or reverses and pulls back (at which case I will take my profits).
All the best as we wrap up 2009 and head into 2010. May the New Year bring joy, happiness, profitability, and maybe a few more Tom C. posts.
*as always, credit goes to TRADEthemove.com where I learned to frame price in this manner.
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