Today’s Featured Trade Idea is VRS.

Members can join us in Trading Room #1 as Rick reviews the VRSsetup and other Trade-Ideas at 9:10am Eastern.  For now, here are my own analysis and a potential trade plan made using our Trader Vision 20/20 software.

VRS has been in an uptrend well over a year. The most recent strong bull run lasted more than a month and has culminated in a little profit-taking J-hook pattern that bottomed out on a Morning Star type signal. I will be looking for a b/o and then a bullish move similar to what it has done in the past.  Note that there have been a number of 15-20% bullish runs in the last 18 months.

I will look for a b/o Entry with Stop roughly where indicated by V-Stop. At all-time highs, I will use Fibonacci Extension targets of 38.2% and 61.8%.

Trader Vision tells us that earnings are out of the way for a couple months. It also shows us that we have 4 Bullish conditions versus 2 Bearish conditions for this trade setup.

TV20/20 then tells us this trade plan can easily achieve our Trade Goal, well prior to even reaching the 1st Target price. If we do reach that 1st Target, the trade can deliver 12.62% or a 3:1 Reward/Risk. However, if we can sell half there and hold the remainder until the 2nd Target, we’d be getting 4:1 ($648/$162) Reward Risk for almost a 17% trade overall.

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 VRS Trade Setup – As of 9-13-18

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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