$MTN - Vail Resorts.
Using a 4-hour timeframe and Stochastic RSI.
Current price - $178.81
Target price - $184 by next Thursday
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$MTN - Vail Resorts.
Using a 4-hour timeframe and Stochastic RSI.
Current price - $178.81
Target price - $184 by next Thursday
Excellent! Nice clean buy the dip set up. Like it already! May the force be with you!
Today $MTN closed at $185.33 and went up to $187 after hours. However, I don't believe this would be a valid trading idea, because I wouldn't be able to take this trade as originally intended. The next day after sharing the screenshot, on Friday $MTN opened at $184 which was the target price.
Well... you are quite right :)
Do you like to do a real trade again and try? Paper trades are rarely valid :)
Also let me point out another item. Your trade set up was on a 4 hr chart, and your target is well within the daily ATR. If you do that as a swing trade, over a long run you will never make any real money. What I am trying to say, your profit target was too conservative :)
This was my thinking of how to play this:
I am using a 4hr chart to give it enough time to play out within a week. But I am ready to sell as soon as 2.5-5% gains are reached. It may be in a day or four.
The reason I am choosing a conservative price target is that I want to trade the stock options instead of the underlying stock. My logic may be incorrect, but my understanding is when a stock gain 3-5%, options contracts on that stock will go up 15-25%.
I still haven't figure out how to evaluate risk/reward ratio though. Because of that, you are right, in a long run I may end up losing more than winning.
I will participate again next time when you do fun with charts again.
If you do option, target at a minimum of 50% gain... 100% better. Otherwise commission and bid-ask spread will eat you alive.
I wouldn’t recommend starting with option. That’s a fast way to blow up your account quite efficiently ;)