COTY Setup and Trade Plan

Today's Featured Trade Idea is COTY.

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

COTY was in a long-term downtrend most of the year. Then in August, the Bulls stepped in to begin a rally. After a failed attempt in late August, COTY broke through the 50sma into a RBB pattern last week.

Following a short profit-taking pullback the bulls stepped back in. On Tuesday the chart printed a Bullish Engulfing of a Dragonfly Doji-type candle in a Pullback Opportunity Pattern.

I will look for follow-through to break out of what will then be a J-hook. My initial Stop will be below a recent Support line with Target defined by longer-term charts.

Trader Vision tells us we have about 2 months until the next earnings on COTY. It also shows us that we have 3 bullish (should be 4 with a signal) and 3 bearish conditions on this chart setup.

TV20/20 also tells us that this trade plan can offer a 5.02 : 1 overall Reward/Risk if all 3 Targets are reached. At the 2nd Target, the R/R would be 3.5 : 1 and at the 1st Target he R/R would be 2.28 : 1. TV20/20 also tells us we need to reach $14.22 in order to chieve our Trade Goal.

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 COTY Trade Setup - As of 10-2-18

COTY Chart Setup as of 10-2-18

The Trade Plan

COTY Trade Plan for 10-3-18

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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