DWT Setup and Trade Plan Be Careful - Volatile Markets now

Today’s Featured Trade Idea is DWT.

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

Be extremely cautious trading this market! We are seeing 4-6% daily ranges in the indices and while the bears are in control of the trend, we may be seeing exhaustion selling (leading to a potential bounce).

DWT is a 3x Inverse ETN of Crude Oil. Being a Leveraged ETN it carries more risk to both re-balancing and leverage). However, it is showing a Rounded Bottom Breakout that has now consolidated for almost a week. It will also break its longer-term downtrend as of Entry for this trade idea.

Trader Vision shows us there are no earnings to worry about. In addition, since this is an inverse ETN the market conditions section incorrectly reads the Market bias long and short-term. (A bearish market should help this ETN.)

TV20/20 tells us this trade plan would get us a 2:1 Reward/Risk at the 1st Target. However, we need to get above the 1st Target to achieve the trade goal set for this account. If we can sell half at Target #1 and the rest at Target #2, we can reach our trade goal and achieve a 2.71:1 Reward/Risk ($380/$140).

On trading above Monday’s high, I will look for an Entry with a Stop protected by 2 potential Support levels and Targets defined by S/R levels above.

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 DWT Trade Setup – As of 10-29-18

DWT Chart Setup as of 10-29-18

The Trade Plan

DWT Trade Plan for 10-30-18

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, the 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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