KBR Setup and Trade Plan

Today's Featured Trade Idea is KBR.

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.

KBR is working on a nice trend since February. In the last couple weeks it ran higher and this last week has formed a J-hook pullback. On Wed. it printed a Bull Engulfing signal at the b/o level.

I will be looking for a b/o Entry using a Stop down below the most recent several day's candle bodies. In this trade I have to accept less than 2:1 Reward/Risk to the first Target and will be looking for 3 Targets (where Fib Extensions and Weekly S/R levels converge).

Trader Vision 20/20 tells us we have about 3mo. until the next earnings. It also shows we have 6 Bullish conditions versus no Bearish conditions in favor of this trade.

TV20/20 lets us know this is a less desirable trade setup as the initial Stop and first Target only offer 1.42:1 Reward/Risk. In addition, we see that KBR must reach $22.05 for us to achieve our goal for the trade. However, if the 3-target plan can be attained, we can make our Trade goal while getting an overall 3:1 Reward/Risk.

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 KBR Trade Setup - As of 8-7-18

KBR Chart Setup as of 8-9-18

The Trade Plan

KBR Trade Plan for 8-9-18

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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