ENDP Setup and Trade Plan

Today’s Featured Trade Idea is ENDP.

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.

ENDP has been in a strong rally since early May. After a huge “Gap and run up” day on earnings, it took profit for a few days. However the Bulls have stepped back in the last couple days to create either a Bullish “Trader’s Best Friend” or Morning Star type signal…and is forming a J-hook.

I will be looking for follow-through to buy above Tuesday’s high using the convergence of Weekly S/R levels with Fib Extensions as my Targets. Beware I am using a large Stop on this one…so think about whether his matches your own risk profile.

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.

Trader Vision 20/20 shows us that earnings are out of the way. It also tells us that we have 6 Bullish conditions and no Bearish conditions…making this an attractive setup.

TV20/20 then tells us that this Trade Plan has a constraint. Notice that due to the large Stop (8.6%), we can only take a small positions size (1.6% of the account) while keeping our “Risk to Stop” below the threshold we set for this account ($150). However, this trade can work. It would give us a 2.4:1 ($339: $141) Reward/Risk at the 1st Target. We would not reach our entire Trade Goal if we had to sell right there.

However, not far above Target #1, we could book our entire Trade Goal. If we were able to sell half at Target #1 and hold the remainder up to Target #2, you can see we will easily make our Trade Goal. In fact, that would give us a > 26% ($431.50) overall profit on the 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 ENDP Trade Setup – As of 8-14-18

ENDP Setup as of 8-14-18

The Trade Plan

ENDP Trade Plan for 8-15-18

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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