MDXG Setup and Trade Plan
Today’s Featured Trade Idea is MDXG.
Members can join us in Trading Room #1 as Rick reviews the MDXG 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.
MDXG has been in a large RBB pattern for a month. In the last 2 weeks, it has created a PBO (Pullback Opportunity) and the bulls have stepped back in off of Trendline and Fib support.
I will be looking for a positive trading Entry, using the J-hook b/o level as Target #1, the 23.6% Fib Ext. (which matches a longer-term chart S/R level) as target #2 and a longer-term chart S/R level as Target #3. The initial Stop will be quite tight below the $5.45 level MDXG broke through yesterday.
Trader Vision 20/20 shows us that we likely have over a month before earnings come around again. It also tells us we should be a little more cautious, because setup conditions are evenly split between bullish and bearish.
TV20/20 told us this plan would not offer a good enough Reward/Risk as originally planned. However, after deciding to accept a tighter Stop this Trade Plan will work. We can get a 2.13:1 Reward/Risk at the 1st Target, 4:1 at the 2nd Target and 7.09:1 overall if we reach the 3rd Target. We can also see that TV20/20 tells us the ticker must reach $6.02 in order to make our goal on the trade (which is a bit above the first target).
In short, TV20/20 is urging caution on this trade setup. That is a valuable warning we may well have missed without this software.
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 MDXG Trade Setup – As of 9-19-18
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.
[button_2 color=”light-green” align=”center” href=”https://youtu.be/Co6sqwoF3sw” 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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Historically September is a down month according to the Traders Almanac, but it would appear the bulls didn’t receive that memo with the Dow near record highs. In fact, the bulls only need to gain 1% to breakout to new highs in the Dow and with the futures suggesting a gap up open the SP-500 is poised to set a new record at the open today. The QQQ and the IWM are lagging behind that’s not likely to deter the bulls from getting that bullish headline accomplished.
Let’s talk a little about a traders responsibility. The last few weeks has without question been challenging for swing traders with all choppy price action and intraday reversals. I’ve been hearing from a lot of traders lately siting consistent losses and blaming all there woes on the news, market makers and White-house and various other villains. At the risk of sounding harsh, if a trader is consistently losing money, the fault lies directly on the trader’s shoulders. The responsibility for success or failure is ours and ours alone.
