GOGO Setup and Trade Plan

Today's Featured Trade Idea is GOGO.

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

GOGO has been in a bullish trend for the last 1.5 months. In the last few days, it has been consolidating between 2 Support/Resistance levels. On a breakout, it will get into a large "waterfall" candle that will act like a gap. However sometime during the time it takes to fill that waterfall, it will run into potential resistance at the 200sma.

For planning/analysis purposes, for my Target price, I chose a level along the recent trend that should be near the 200sma when GOGO reaches that point. I will look for a b/o Entry and an initial Stop below the most recent Support.

Trader Vision shows us that earnings are out of the way and we have 2+ months until they come around again. It also lets us know this trade has 3 Bullish Conditions, but 2 Bearish Conditions, making it less of a "slam-dunk" setup. Specifically, there is no buy signal, the ticker has not reversed its downtrend yet and the short-term market trend is not Bullish. However, since we can address those issues to our satisfaction we can ahead with planning (especially since this is a small trade relative to the account size).

TV20/20 tells us this trade plan offers a great Reward/Risk (4.42:1) and that we can achieve our trade goal by the time we are halfway to the single target price. While this is great, it should also be a reason for some caution that we are being optimistic. There are likely to be some down days and/or consolidations along the way to filling that 30% run.

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 GOGO Trade Setup - As of 9-17-18

GOGO Chat Setup as of 9-17-18

The Trade Plan

GOGO Trade Plan for 9-18-18

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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