FEYE Setup and Trade Plan

Today’s Featured Trade Idea is FEYE.

Be Careful: Markets gapped higher Wednesday and had a decent run, but all of them closed leaving high wicks.  The DIA failed a test of its 200sma and even on a +1-2% day, it did not seem like the Bulls were in control.  Just remember the trend is still Bearish until we have a higher low and higher high.

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.

FEYE is coming off a nice gap-up day (on earnings) and continues to put in higher- highs and higher lows recently. However, it did pull back from resistance Wed.

I will wait on it to prove $19 is no longer resistance with a Stop protected by the $19 and $18.25 S/R levels. Targets were defined of the Weekly chart.

Just be cautious as this still has resistance above and the overall market is still in a Bearish trend (despite nice gap-ups yesterday).

TV20/20 tells us we have 3mo. until the next earnings report. It also shows that we have 3 Bullish and 3 Bearish conditions (2 of the bearish being overall market trends long and short-term).

Trader Vision also shows us that this plan (waiting 3.5% for FEYE to prove it can break out) gives us a good Reward/Risk of 2.29/1 at the 1st Target. However, if we can sell half there (to lock in profits) and hold the remainder until the 2nd Target we can achieve 3.82/1 ($487.5 / $127.50) overall.

FEYE must reach just above Target #1 ($21.38) in order to achieve the Trade Goal for this account.

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  Trade Setup – As of 10-31-18

FEYE Chart Setup as of 10-31-18

The Trade Plan

FEYE Trade Plan for 11-1-18

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…

 


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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