QNST Setup and Trade Plan
Today’s Featured Trade Idea is QNST.
Members can join us in Trading Room #1 as Rick reviews this setup 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.
QNST made a major Bullish move on earnings 10/31 and then followed-through the next day. It has consolidated the following 3 days, bouncing off Support and the Bulls showed they are stepping back in strongly on Wed. If you squint, this J-hook pattern could even be called a Mat Hold signal.
On positive trading, I will look to Enter with a tight Stop. The Targets are defined off the Weekly chart.
Trader Vision shows us that earnings are out of the way and we have nearly 3 months to work with on this trade setup. It also shows us this chart gives us 5 Bullish and only 1 Bearish (overall market long-term bias) condition.
TV20/20 tells us this Trade Plan offers a very low Risk ($115.50) to Stop and a good Reward ($375.75) at the 2nd Target. It also told us we would achieve 2:1 Reward/Risk at the 1st Target and that we can achieve the Trade Goal between Targets #1 and #2.
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 QNST Trade Setup – As of 11-7-18
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, the 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.
[button_2 color=”light-green” align=”center” href=”https://youtu.be/vsyBdRoCVGI” new_window=”Y”]Trade Plan Video[/button_2]
Put the power to Trader Vision 20/20 to work for you…
[button_2 color=”orange” align=”center” href=”https://hitandruncandlesticks.com/product/trader-vision-20-20-monthly-subscription2/” new_window=”Y”]TV20/20 Software[/button_2]
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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Today is the last really big day of reports this quarter, and with the election behind us, the market is free to react to earnings and the FOMC decision. Asian markets were mixed but mostly higher overnight, and the European markets are currently flat to mostly lower. The US Futures are only pointing to a modest gap down this morning but after such a huge rally don’t be surprised to see some profit-taking.
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Judging by the bullishness of the US Futures the market is pleased with the election results. At the open, the Dow will have recovered more than 1700 points in just 7-days to test its 50-day average as resistance. Truly an amazing accomplishment but raises the questions is it too much to fast and are we overextended in short-term? Only time will tell but be careful chasing the morning gap at the open in case profit-takers capitalize on the bullish windfall.
Everywhere I look I see another talking head trying to predict the outcome of the mid-term election. To be honest, that’s far easier to do that than trying to predict how the market will react to the results! What I can say with 100% certainty is that no one knows what that reaction will be and trying to trade it is straight up gambling. As traders, we all gamble from time to time but let’s be honest with ourselves and have our eyes wide open if you choose to do so today.
On the Earnings Calendar, we have more than 350 companies reporting today. Keep checking and stay focused on the number of reports grows even more through Thursday.
