BSX Setup and Trade Plan

Today's Featured Trade Idea is BSX.

Members can join us in Trading Room #1 as Rick reviews the BSX 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.

BSX has been in a strong bullish trend all year. Over the last week it has been doing a tight consolidation to work off some of it's over-extension. This forms a Pop Out of the Box pattern.

I will be looking for a breakout Entry using a Stop tight below the box. Targets come from a long-term (8 day) chart and I will look to take profits where the 38.2% Fib Extension and S/R align as well as around the 100% Extension or possibly the $44.75 all-time high level.

Trader Vision 20/20 tells is that we should have a month until earnings. It also shows us that we have 5 bullish conditions and only 1 bearish condition for this chart setup. This makes for a nice trade to consider.

TV20/20 then tells us this trade plan offers a very low risk to Stop-out ($80), but limited reward at the 1st Target price ($195), which still gives us 2.44:1 Reward/Risk. However, if we can sell half at the 1st target and hold the rest to our 2nd target, we can achieve between 4.72 and 5.5:1 Reward/Risk (depending on whether we use the all-time highs as S/R or a slightly more conservative 2nd Target of $43.50).

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 BSX Trade Setup - As of 9-21-18

BSX Chart Setup as of 9-21-18

The Trade Plan

BSX Trade Plan for 9-24-18

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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