Easy Way to Trade With the Trend: Coiling Setups

Couple of weeks ago I posted a video explaining how Coiling Setups works.

I explained that Coil is an essence a pullback in wave 4 after a strong rally in wave 3 up. I always have been a huge fan of buying wave 4. All subscribers of my video course “Trade Like a Pro” could see how many lessons I devoted to that setup.

Why I love that setup? Because wave 4 is a pullback against a strong bullish trend. Even after wave 3 up tops the bullish momentum remains to be strong. At this point risks of breakdown are limited.

Look at the classic Five Wave up fractal. A strong wave ( 3 ) up is followed by a temporary (A)-(B)-(C) down pullback that we label as wave ( 4 ) down. The great thing about buying that pullback is that normally we get another rally in wave ( 5 ) up that follows.

That wave ( 5 ) up is normally structured as (A)-(B)-(C).

The first push up in subwave ( A ) normally retests the top of wave ( 3 ) up. But after a brief pullback in subwave ( B ) down the final push higher in subwave ( C ) of wave ( 5 ) up breaks out over the previous high. So when you buy a pullback in wave ( 4 ) you know that most likely another rally in wave ( 5 ) up would push the price to a higher high!

I told you that story many times and you may wonder what the news in that.

The great news is that I managed to code several scans that let me find such setups from the universe of 9,000 stocks actively traded in the US stock exchanges. And I managed to build a pipeline of attractive long setups that I have been posting in a dedicated section of my Premium Chat room. 

Moreover, I have launched a private invite-only Twitter feed where I post several new coiling setups every day. That Twitter feed is available for subscribers of my Premium Trading Chat and subscribers of the Standard Plan that includes coverage of Value and Momentum stocks without any additional payment! If you are a subscriber and want to join that private Twitter feed please shoot me an email to castawaytrader@gmail.com



My New Private Invite-Only Twitter Feed

The first results of that service are very promising. Please see the spreadsheet below showing all the charts I posted in that section and the outcome of those setups:

Let me show you how those setups look like and work.

Let’s take one of them, AZN posted on June 30.
This is what I wrote on June 30th when I posted it:
“Very interesting long setup in $AZN.
Wave 4 down is shaped as a symmetrical triangle.
Look at the gorgeous coil in MACD”.

On July 8th, when AZN traded at 54.19 I reaffirmed my bullish view:
“AZN remains to be my favorite setup.
On Balance Volume Indicator has been climbing higher while price stayed flat.”

AZN - Daily chart posted on June 30, 2020

This is how AZN looks today (see below). It moved up to 59 from 52.67 at the moment when I posted the bullish setup on June 30th.

That is a good 12% rally in three weeks. This is a classic resolution of a coiling setup.

From the spreadsheet tracking results of the setups shown above you can see that CCJ, STMP and SBSW delivered even better results! What is really important to me that I do not see any huge draw downs among the picks.


AZN - Daily chart posted on July 17, 2020

If you are not subscribed to my service but would like to try this new service dedicated entirely to finding long coiling setups please shoot me email. I consider launching that service based on Twitter private feed.

I offer free two week trial for all the members registered on my web site. The monthly fee after the trial would be $99/month.

You can start you free trial here!

Watch my Last Video Discussing Performance of the Coiling Setup in July 2020

Watch the video explaining how that setup can be detected and its performance in July 2020.

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Trading stocks, options, or futures carries a high level of risk, and may not be suitable for all investors. Before deciding to trade, you should carefully consider your objectives, financial situation, needs and level of experience. CastAway Trader LLC provides general overview of trading methods that does not take into account your objectives, financial situation or needs. The content of this website must not be construed as personal advice. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading. You should seek advice from an independent financial advisor. Past performance is not necessarily indicative of future success.

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