Today’s Featured Trade Idea is DISH.

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

DISH recently broke its long-term downtrend and after a run up off the bottom has been consolidating in a range for a month. The last few days it ran up and then on Friday started retesting the breakout level printing an indecisive Spinning Top. If it can break out, there is about 5% to be made before it runs into the next S/R level and the 200sma.  So, this trade really is only viable as a stock trade if it breaks on through that level and continues the rally up into the $42 area.  I will look for a b/o buy, with a tight Stop and the targets drawn off longer-term charts.

Trader Vision tells us earnings are out of the way. It also shows us that we have 5 Bullish Conditions and only 1 Bearish Condition (overall market short-term trend) in favor of this setup.

TV20/20 shows us that this trade plan offers low risk (at a reasonable position size), but also limited upside potential. We can achieve a 2:1 Reward/Risk at the 1st Target by using a tight Stop. However, if we can sell half at Target #1 and hold the remainder up through the 200sma to Target #2, we can get 3.64:1, achieve our Trade Goal and pocket a respectable 9.9% ($364.50) overall on the trade.  If this offered a decent options setup, this would be a more attractive trade.

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 DISH Trade Setup – As of 9-14-18

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.

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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