Today’s Featured Trade Idea is EVH.

Here are my analysis and a potential trade plan made using our Trader Vision 20/20 software.

EVH has been in a Bullish Trend since the last quarter of 2017. In the last month, it has made another leg higher and has tightly consolidated over the last 8-9 days. (We might even call it a Pop-Out-of-the-Box setup.) Then on Friday, it printed a Morning Star type signal.

I will look for a b/o Entry (above the box), using the box as protection for my Stop tight below. Target prices were defined off longer-term charts and confirmed by Fib. Extensions of the August rally run.

Trader Vision shows us that earnings are out of the way for EVH. It also tells us we have 6-7 Bullish conditions (depending on your view of a Morning Star signal Friday) and no Bearish conditions in this setup.

TV20/20’s Trade Planning capability made it easy for us to adjust Entry to ensure we’d be getting 2:1 Reward/Risk to the first Target. It also tells us that if we achieve both Target prices, the overall trade will give us 2.8:1 ($399.50 / $142.80) Reward/Risk.

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 EVH Trade Setup – As of 8-24-18

The Trade Plan

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…

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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