FTR Setup and Trade Plan

Today's Featured Trade Idea is FTR.

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

FTR has been a bullish trend the last month. After breaking into an RBB pattern (and through a resistance level), it has consolidated...holding that level as Support. It printed a Morning Star on Friday and followed-up with an indecisive Doji/Spinning Top on Monday.

I will look for a b/o buy with my Stop below the most recent candles. Targets are defined off the Weekly Chart S/R levels.

Trader Vision tells us that earnings are out of the way and that we have at least 4 Bullish conditions (Pattern should also be bullish) versus only 1 Bearish condition (short-term bias has been a consolidation/pullback. It also tells us we can get a plan a trade with good profit potential while keeping both our "Risk to Stop-out" and position size very reasonable.

TV20/20 then tells us this plan offers great potential. We could sell the entire position at about three-fourths the way to the 1st Target and still achieve our Trade Goal. At that 1st Target we would be getting about 2.85:1 Reward/Risk, but if we can sell half there and hold the other half to the 2nd Target, we can get 4.19:1 ($654 / $156) Reward / Risk Ratio.

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 FTR Trade Setup - As of 8-27-18

FTR Chart Setup as of 8-27-18

The Trade Plan

FTR Trade Plan for Plan 8-28-18

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

 

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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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