Today’s Featured Trade Idea is GLUU.

Members can join us in Trading Room #1 as Rick reviews the ODP 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.

GLUU has been in an uptrend since early 2017. After a profit-taking pullback in July, a strong rally resumed in August. For the last 1.5 weeks, it has Consolidated in a tight box, creating a Pop-Out-of-the-Box Setup. (It also printed a Morning Star signal a few days back during this consolidation.)

I will look to Enter on a b/o of the consolidation with a Stop tight below the box. Targets were defined off an 8-day chart and the first Target happens to align tightly with a 61.8% Fibonacci Extension of the most recent leg of the rally run.

Trader Vision tells us that earnings are out of the way and we have about 2 months before they come around again. It also tells us that we have 6 Bullish conditions and no Bearish conditions in this Setup. This makes for a potentially very attractive trade.

TV20/20 then tells us that using this Trade Plan, we can take a position size just under 3% of this account and still keep our “Risk to Stop out” at $152. Using this plan, we would get 2.37:1 Reward/Risk at the 1st Target ($360/$152) and could achieve our Trade Goal if we had to sell the entire position at that point. However, if we can sell half at that price (to lock in profits) and ride the remaining half to the 2nd Target, we can achieve an overall 3.32:1 ($504/$152) Reward/Risk. Of course, we would have moved our Stop Loss higher by that point, which would reduce the Risk even further.  This all makes for a very attractive Trade Plan.

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 9-4-18

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

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

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.

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