BOOT Setup and Trade Plan

Today’s Featured Trade Idea is BOOT.  This idea shows the power of Trader Vision 20/20 to inform our trade selection/validation.  Don’t take this trade until you’ve watched the video!

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.

BOOT broke the recent downtrend by putting in a nice J-hook that broke up through and held the 50sma. It printed a Trader’s Best Friend signal yesterday.  However, when laying out the trade in TV20/20, we see that we cannot get the 2:1 I require at Target #1 without drawing that pink line and believing that support will be enough to warrant a tighter Stop. If you can see that, this trade lays out nice with Fibs and Weekly S/R levels aligning well.

TV20/20 showed us that even though there were a lot of things to like about this trade, unless we can really justify that tighter Stop (see video), this trade would be a pass. With that tighter Stop, it can give us 2.4:1 (only $240) Reward/Risk at Target #1, but 3.65:1 ($365) at Target #2. We can also see that the stock must reach $25.50 to achieve our Trade Goal.  This analysis allows us to analyze whether we think the tight Stop and run to well past Target #1 are realistic and make a well-considered decision with a cool head. We certainly see we cannot chase an Entry on this one at all.

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 BOOT Trade Setup – As of 7-17-18

BOOT as of 7-17-18


The Trade Plan

BOOT Trade Plan for 7-18-18


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…




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



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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