IRDM Setup and Trade Plan

Today's Featured Trade Idea is S (Sprint).

Members can hear Rick's 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.

IRDM has been in a strong uptrend since mid-May. This month it made another leg higher and then took some profits in a very reasonable pullback from All-time highs.  I will be looking for a J-hook b/o with a tight Stop below the bodies of the Wed-Fri. candles, using Fib. Ext. Targets since we're at all-time highs.

Trader Vision 20/20 shows us that earnings are out of the way. It also says we have 5 Bullish conditions and only 1 Bearish condition in this Setup.

TV20/20 then shows us that this Trade Plan does net us more than 2:1 Reward/Risk at the 1st Target, but we'd need to get 25cents above that Target to reach our Trade Goal. If we can hold half the trade until the 2nd Target, we essentially get a 3:1 Reward/Risk ($389/$130). All-in-all, this makes for a nice little trade on a breakout.

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 IRDM Trade Setup - As of 8-17-18

IRDM Chart Setup as of 8-17-18

The Trade Plan

IRDM Trade Plan for 8-20-18

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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