FDC Setup and Trade Plan

Today's Featured Trade Idea is FDC.

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.

FDC printed a Bullish Engulfing signal Thursday and then a Doji (or Hanging Man) type candle at the breakout level of a small J-hook pattern on Friday.  I will be looking for a b/o above $24 for Entry using the 23.6% Fib retracement of the pre-hook run as my Stop.  I'll use Fib Extension Targets here at all-time highs (and use 3 Targets since we have 3mo. until the next Earnings...I don't expect to be in anywhere near that long, but I have time on this ticker).

Trader Vision tells us we have 3 months (essentially) until the next earnings and have 5 Bullish conditions versus 2 Bearish conditions. TV20/20 tells us this Trade Plan can achieve our Trade Goal between the 1st and 2nd Target prices...and that overall it would provide an 11.18% profit.

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 FDC Trade Setup - As of 8-3-18

FDC as of 8-3-18

The Trade Plan

FDC Trade Plan for 8-6-18

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...

 


 

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

 

***************************************************************************************************

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.

***************************************************************************************************

Comments are closed.

Skip to toolbar