This is a methodology that a friend and I have been collaborating on for the last couple of weeks. It combines Wyckoff, S/R, and price action (plus 2 indicators 200 ema and stochastics). Here we go.
1. New swing high on 12/23/14, also showing a divergence between stochastic and price (often a continuation of trend on pullback)
2. Gradual sloping uptrend based on 200 ema (uptrend)
3. 2 bar reversal candle pattern on 1/22/15
4. Support at white line, with 3 prior reversals at that level
5. Fib retracement to 0.618
6. Support at 200 ema
7. Divergence between volume and price on 10/15/2014; and confirmation with volume on new swing high and current pullback
Entry/stop:
4 different scenarios
1. R:R 1:5.31, if minor swing low holds prior to a new high
2. R:R 1:1.34, if minor swing low fails, but major swing low holds prior to new high (this is the key assessment, must be 1:1 or better, since this is the worst profitable outcome)
3. R:R 1:2.09, if major swing low holds with a target AB=CD (this could change if price further pulls back)
4. R:R 1:3.53, if major swing low holds with a fib extension target at 1.618 (this could change if price further pulls back)
1. New swing high on 12/23/14, also showing a divergence between stochastic and price (often a continuation of trend on pullback)
2. Gradual sloping uptrend based on 200 ema (uptrend)
3. 2 bar reversal candle pattern on 1/22/15
4. Support at white line, with 3 prior reversals at that level
5. Fib retracement to 0.618
6. Support at 200 ema
7. Divergence between volume and price on 10/15/2014; and confirmation with volume on new swing high and current pullback
Entry/stop:
4 different scenarios
1. R:R 1:5.31, if minor swing low holds prior to a new high
2. R:R 1:1.34, if minor swing low fails, but major swing low holds prior to new high (this is the key assessment, must be 1:1 or better, since this is the worst profitable outcome)
3. R:R 1:2.09, if major swing low holds with a target AB=CD (this could change if price further pulls back)
4. R:R 1:3.53, if major swing low holds with a fib extension target at 1.618 (this could change if price further pulls back)