Today’s Featured Trade Idea is HZNP.

Members can hear Rick’s detailed review in the trading room at 9:10am Eastern.  For now, here is my analysis and a potential trade plan made using our Trader Vision 20/20 software.

HZNP is working on a PBO with a very reasonable 23.6% pullback after a strong run higher. The bulls seem to be stepping back in now the last couple days.

However, to be conservative, I will look require the trade to b/o of the J-hook pattern to prove the Bulls are in control again. Since the Entry is 3.5% higher, my Stop will be below Monday’s candle and Targets are Fib. Ext. that match some Weekly S/R level.

Trader Vision 20/20 shows us that earnings are out of the way. It also tells us that we have 5-6 Bullish conditions with no Bearish conditions in this Chart Setup.

TV20/20 tells us this plan can achieve our Trade Goal prior to reaching the 1st Target. However, we will get 2.45:1 Reward/Risk at that 1st Target. If we sell 100 shares there and can hold the rest to sell at the 2nd Target, we achieve almost 3:1 Reward/Risk ($455/$152).

This would be a nice little 12% trade and it assumes waiting on b/o confirmation. So it is a bit more conservative on Entry.

Having this knowledge before a trade is even entered makes it much easier to control emotions and maintain discipline.

Below is my markup of the chart and the trade plan as laid out by Trader Vision 20/20.  As a bonus, if you click the green button below, you’ll be able to watch a video of the chart markup and trade planning process.

The HZNP Trade Setup – As of 8-20-18

The Trade Plan

Note how Trader Vision 20/20 does so much of the work for you.  Knowing the ratio of Bullish Conditions to Bearish ones as well as the overall risk of the position size, risk to Stop out and the Reward possible at each Target price can help a great deal with controlling our emotions.  Knowing the dollar impact of every scenario ahead of time, allows us to make calm decisions during the trade.  It really takes the pressure off.  No guesswork.  No surprises.  No emotional roller coaster.

To see a short video of this trade’s chart markup and trade planning, click the button below.

Put the power to Trader Vision 20/20 to work for you…

Testimonial

Trader Vision immediately simplified the process…immediately it provided that information and guidance to me. I knew what I would risk for how much reward, I began taking trades off at the 1st target, 2nd target, I was no longer holding all my trades for the homerun. I also began implementing the stop losses if and when they were reached, not just hoping the stock would recover.  It then became easier to see what patterns were working for me and which were not.  It provided a much more relaxed and stress-free environment. –Joan G

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Investing and Trading involve significant financial risk and are not suitable for everyone. Ed Carter is not a licensed financial adviser nor does he offer trade recommendations or investment advice to anyone. No communication from Hit and Run Candlesticks Inc. is to be considered financial or trading advice. All information is intended for Educational Purposes Only. Terms of Service.

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