GLW Setup and Trade Plan

Today's Featured Trade Idea is GLW.

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

GLW has been in an uptrend since late June. After consolidating for a month, the Bulls have stepped back in the last few weeks. On Wed. it printed a Bullish Engulfing signal to test the July high. Above the b/o, there is not much previous overhead price action from the last several years that might prove resistance.

So, I will look for a b/o Entry with a Stop protected by 3 levels of potential Support. I will use Fibonacci Extension targets since there are no S/R levels for at least several years ago.

Trader Vision shows us that we should have 1.5 months until the next earnings. It also tells us this setup has 5 Bullish conditions versus only 1 Bearish condition. (Actually, it should register a Bullish signal, Bull Engulfing, as well, which would make the ratio 6:1.)

TV20/20 shows us that this Trade Plan offers a limited initial risk ($120) with the ability to make 2.65:1 Reward/Risk at the 1st Target price. However, if we can sell half the position there, move the Stop up (to reduce risk) and hold the remainder until that 2nd Target, we would achieve 3.5:1 Reward/Risk ($420/$120). Finally, TV20/20 tells us this plan can achieve our trade goal if GLW reaches $37.17 *+8.53%).

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 GLW Trade Setup - As of 9-12-18

GLW Chart Setup as of 9-12-18

The Trade Plan

GLW Trade Plan for 9-13-18

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...



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.


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