DRIP Setup and Trade Plan

Warning…this blog contains trade IDEAS…not recommendations.  And there is no law saying you have to trade every day.

Today’s Featured Trade Idea is DRIP.

Members can hear Rick’s 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.

DRIP has formed a bottom and has been putting in higher-highs and higher-lows since the first half of June. It has broken into a RBB pattern and took out a Weekly resistance level on a strong day Monday.

I will look for an inside day buy, hoping to even see a successful retest to prove the broken Resistance is now Support with a Target up at the next Weekly Resistance (about $7.30). If we are very lucky in a choppy market, the 2nd Target is up about $8.25.

Being an ETF, we have no earnings to worry about. Trader Vision 20/20 tells us we have 5 Bullish conditions and only 1 Bearish condition for this Setup. So it is worth considering.  TV20/20 shows us this Trade Plan can offer a 3.28: 1 ($108:$354) Reward/Risk at Target #1 and if we were lucky enough to get a trend here, 5.86:1 ($633:$108) at the 2nd Target.

Notice I’ve made special note that I am only looking to Enter on a successful retest of Support, with the buy on the way back up.


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 DRIP Trade Setup – As of 8-13-18

DRIP Chart Setup as of 8-13-18

The Trade Plan

DRIP Trade Plan for 8-14-18

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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