Monday, October 26, 2026

ADBE stock | D chart | Demand box area - Long position - 3 Trades

 Trade 1

How to place a long trade? 

  1. Oct 8 - Strong uptrend momentum bar - Do not chase high price, wait at discount zone - where to find discount zone? 
  2. Determine the demand box - use previous downtrend bar Oct 7 2026 to determine the range - top and bottom of range - Determine premium area and discount area
  3. Do not chase the high price after a strong uptrend momentum bar showing up
  4. Wait until Oct 10 to place a long trade when the price drop inside red rectange area - price from 232.98 to 236.41, discount range in demand box area - Red or pink color area - discount zone 
  5. For example, if you place an order of 1000 shares of ADBE stock, you want to place an order with best price, maximum paper loss of those 1000 shares of ADBE stock should be 3.5 x 1000 shares, not (241 - 218) * 1000 = $23,000 US dollars, not (236-227) * 1000 = 9000, actual maximum paper loss based on the following chart should be (236.38 - 232.8) x 1000 = 3500 US dollars
  6. The position trade will take 5 days - maximum gain - Take profit at the fifth day peak point 
  7. Maximum profit - Take profit 7.2% - It takes 4 days
The following Day chart: 

Indicators:
  1. EMA 100
  2. EMA 200 
  3. But no EMA 5, no EMA 9, it is hard to tell that uptrend strong momentum
  4. Should add EMA 5
  5. Should add EMA 9
Trade 1 - 
  1. Place a long trade on Oct 9 
  2. Take profit on Oct 15
  3. Trade - Five days
  4. First day - long trade - not in discount zone - no order is place
  5. Second day - long trade - ADBE stock dropped in discount zone - long trade is place
  6. Oct 15 - Take profit - Two uptrend bars - over 7% return 

How to place a long trade after Oct 8 strong uptrend momentum candle bar? 

  1. Find demand box - discount area? 
  2. Determine the range of Oct 7 - downtrend red bar top and bottom price
  3. Place a limit order - inside pink or red color range - discount zone in the following chart
  4. Take profit - Use EMA 100 - take profit - resistance area - It is better to wait and then find out if take-profit price should be adjusted or not later

What happened to next day? 

  1. Oct 9 - ADBE stock went up - long trade cannot be placed - limit order
  2. No order executed - Open order is still waiting for ADBE stock dropped to discount zone
  3. Oct 10 - ADBE stock dropped 


Oct 10 2026 - ADBE stock dropped to discount area - demand box

  1. ADBE price dropped below green color box - premium area 
  2. Pink color or red color zone - discount area 


Take profit - Oct 12 2026 

  1. Take profit - long upper wick - take profit with other traders as well - Peaked - Gain 13% from the previous pivot point lowest 
  2. What questions do you have? 
  3. Think about how to place the trade? What kind of trade? (Limit order) 
  4. What is challenge? Find discount zone? demand box? 
  5. How to find the demand box? 



Trade 1 showing in the day chart - Six days - One trade - need to prepare and learn how to place a limit order based on day chart. 




Indicators: 
  1. EMA 100
  2. EMA 200 - blue color - ADBE tested EMA 200 first time in last month
  3. EMA 9 - green color
  4. EMA 5 - red color




The following one is not good as the above chart to place a long trade. 



Trade 2 

  1. How to place a long trade No. 2 after trade 1 take-profit on Oct. 15?
  2. Place a trade in the discount zone - demand box range in red or pink color rectangle area 
  3. Best price - Second day on Oct. 19 Monday ADBE price dropped into the demand box zone - discount area 
  4. Check risk and reward ratio - Take profit - Wait at lest two uprend bars - at least Risk to reward 1: 2, currently risk and reward ratio: 8.83
  5. Take profit - 11.478% profit maximum - it will take five days - Be patient 








Trade 3 






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