Today’s Featured Trade Idea is MDXG.

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

MDXG has been in a large RBB pattern for a month. In the last 2 weeks, it has created a PBO (Pullback Opportunity) and the bulls have stepped back in off of Trendline and Fib support.

I will be looking for a positive trading Entry, using the J-hook b/o level as Target #1, the 23.6% Fib Ext. (which matches a longer-term chart S/R level) as target #2 and a longer-term chart S/R level as Target #3. The initial Stop will be quite tight below the $5.45 level MDXG broke through yesterday.

Trader Vision 20/20 shows us that we likely have over a month before earnings come around again. It also tells us we should be a little more cautious, because setup conditions are evenly split between bullish and bearish.

TV20/20 told us this plan would not offer a good enough Reward/Risk as originally planned. However, after deciding to accept a tighter Stop this Trade Plan will work. We can get a 2.13:1 Reward/Risk at the 1st Target, 4:1 at the 2nd Target and 7.09:1 overall if we reach the 3rd Target. We can also see that TV20/20 tells us the ticker must reach $6.02 in order to make our goal on the trade (which is a bit above the first target).

In short, TV20/20 is urging caution on this trade setup. That is a valuable warning we may well have missed without this software.

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 MDXG Trade Setup – As of 9-19-18

The Trade Plan

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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