AMD Setup and Trade Plan

Today's Featured Trade Idea is AMD.

You can read more about this trade in Rick's blog post here.  Members can also see his 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.

AMD shows a beautiful long-term trend and is working on a Pullback Opportunity now. We have to go out to a 7-day chart to find Resistance above and that lines up nicely with a Fib Extension of the most recent Bull run.

I will be looking for a positive trading Entry with Stop below Monday's candle body. I'll use the convergence areas as Targets and can play with scenarios of whether I trade it as 1, 2 or 3 Targets. We have this luxury since we have well over 2.5mo until earnings.

Trader Vision shows us Earnings are out of the way and that there are many Bullish conditions in favor of this trade. It also shows that we are able to make our Trade Goal, even if we have to sell the entire position at Target #1.

However, then TV20/20 makes it easy for us to do scenario planning to decide between using 2 or 3 Targets. It tells us what each Target would deliver in profit, as well as do to the trade overall in terms of Reward/Risk.

Having these 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 AMD Trade Setup - As of 8-6-18

AMD as of 8-6-18

The Trade Plan

AMD Trade Plan for 8-7-18

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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