GLW Setup and Trade Plan

Today's Featured Trade Idea is GLW.

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.

GLW has been trending strongly Bullish all of July. In the last week it has done a little profit taking and is trying to form a J-hook with a tight consolidation box at the bottom of the PBO. We can use this box to help define and Entry (above) and Stop (below).  There is the possibility of some Resistance about $34.15 (b/o level), but the first major Resistance should come up around the 38.2% Extension and then 61.8% extension. Those will be my Target prices. I'm just looking for the Trend to resume and continue.

Trader Vision shows us that we have 2.5mo. until the next earnings report and 4 Bullish to 1 Bearish condition in favor of this setup. With this Trade Plan, we can sell the entire position at Target #1 and reach our Trade Goal. However, if we sell half and hold the second half until our 2nd Target price, we can get 5:35:1 Reward/Risk versus out initial Stop and clear over $500 in profit. Finally, TV20/20 shows us that to achieve our Trade Goal, GLW only needs to reach $36.38.

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 8-7-18

The GLW Trade Setup - As of 8-7-18

GLW chart as of 8-8-18

The Trade Plan

GLW Trade Plan for 8-8-18

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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er 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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