DLTH Setup and Trade Plan

Today’s Featured Trade Idea is DLTH.

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.

DLTH has had a strong bullish rally the last 1-2 months, with a couple little pullbacks to keep from getting over-extended. It has just broken out of a J-hook and has held the b/o level the last 2 days (proving that level is Support).  I will be looking for even more proof the Bulls are in control, by making it break above the pre-J-hook high, using the highs at the bottom of the pullback to define my Stop and using the areas that align between weekly S/R levels and a Daily Fib Extension as my 2 Targets.

Trader Vision tells us we have about 6 weeks until Earnings and 6 Bullish conditions going for the trade (versus no Bearish ones). It also shows us this Trade Plan has a good size (3.69% of Account), with only $130 of risk to Stop, versus a potential reward of $473 (3.62:1) at the first Target. If we sold half there and made the 2nd Target, we’d get 4.76:1 Reward/Risk ($621 profit) on the trade for an overall 16.29%.  TV20/20 also shows us that we do not even need to reach the first Target to be able to book our Trade Goal profit ($350). So this is a very nice plan.

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 DLTH Trade Setup – As of 7-23-18

DLTH as of 7-23-18


The Trade Plan

DLTH Trade Plan 7-24-18


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…




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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