MDCA Setup and Trade Plan

Today’s Featured Trade Idea is MDCA.

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.

MDCA has bottomed and begun an uptrend over the last 2 months. It recently broke into a Rounded Bottom Breakout pattern. In the last week it has pulled back after a nice run-up and printed a Hammer and Bullish Engulfing signal the last 2 days.  I will be looking for a b/o Entry above recent resistance with a clear Target up where the 38.2% Fib Ext. and both Daily and Weekly S/R levels align (about $6.60). The second Target will be a bit higher at the 61.8% and Weekly resistance level (about $7).

TV20/20 tells us we have roughly 2.5 weeks until earnings on MDCA and have several factors in our favor. This plan allows us to take a relatively small position (2.23% of Account), risking $152 to the Stop and still gives the potential of 2.24:1 ($340) or 2.76:1 ($420) Reward/Risk at Targets #1 and #2 respectively. We can also see we can achieve the Trade Goal just 3 cents above Target #1.

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 MDCA Trade Setup – As of 7-18-18

MDCA as of 7-18-19


The Trade Plan

MDCA Trade Plan for 7-19-18


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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