Posted on this blog last week to monitor EXC to short on 10th May before U.S. market open at 930pm on that day. After that, I had a webinar with my students that evening before market open and told them to monitor this closely for a trade using my Trade To Win (T.T.W.) trading system. T.T.W. system triggered a trade entry that very day after market opened. Here is the current chart of EXC up to yesterday’s close.
Most typical technical analyst will say that it is a double top formed and that’s why it is going down. But most people will also say that by the time the double bottom is confirmed, it is always a bit too late to trade it. And if it is still early to confirm to say that it is a double top, when people trade it, normally what happens after that is the double top is not formed and breaks the previous resistance to set a new high. And that is why most analyst are analyst and not professional traders. Analyst are paid to be right and justify it after it has already happened and most of the time the battle is already over. Here, being the trade has already moved.
Using T.T.W trading system, as you can see, it can go along side with double top analysis. The only difference is that there is confirmation and the confirmation is much earlier for a trade entry to minimize risk and to maximize returns. I don’t use double top or bottom analysis anymore but most of the time after I traded a security, I noticed a double top or bottom being formed afterwards. I also like to congratulate all those who traded this after following my post last week on 10th May especially my students as well. One of my students who have traded this is Joey when he posted on my facebook for students asking whether to hold or start taking profits this morning. Here is the screenshot of it and it really makes my day (even much more than making the money myself) seeing it.
Keep it up Joey. Consistent income from trading is the way to go. Enjoy the trading journey ahead.