Today’s Featured Trade Idea is DO.

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.

DO printed a large Bearish Engulfing signal to enter a Blue Ice Failure pattern on Monday.  With overall markets also Bearish, I will look for a retest of the 50sma to get a better entry and use the failure at that level to protect my Stop above the 50sma.  While the pattern target is usually the 200sma, I will use a potential Support level between the two as Target #1.  Target #2 is also a potential Support area near the 200sma.  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 DO Trade Setup – As of 6-25-18

The DO (Short) Trade Plan

Note how Trader Vision 20/20 does so much of the work for you.  The anticipated second Target price would generate a 7.67% gain and the second target an overall gain of 9.52%.  We also see that the Risk is low and the potential Reward good.  Knowing the Risk, Reward and how far a stock must move to reach our goal…before a trade…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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