MNK Setup and Trade Plan

Today's Featured Trade Idea is MNK.

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

MNK formed a Blue Ice Failure pattern on a huge Bearish Kicker signal on Thursday. On Friday there was indecisive trading (profit taking by bears), forming a Spinning Top / Doji candle that sets up the potential of a Bearish Doji Continuation pattern.

I will be looking for a Short Entry on negative trading with a Stop not far above. I will use 3 Targets for the trade since a Blue Ice Failure pattern tends to fall to the 200sma. Those target levels are defined by Daily and Weekly chart history.

Trade Vision tells us we should have a month until the next earnings report. It also shows us that this chart setup has 4 Bearish conditions and 2 Bullish ones (the long-term stock and overall market biases).

TV20/20 shows us that this trade plan offers a $150 risk to stop-out with more than 2:1 Reward at the 1st Target. If all 3 Targets are reached (making it to the 200sma) the trade can give us a 3.45:1 overall Reward/Risk. It also shows us that we need to get below the 1st Target in order to achieve our Trade Goal for this account.

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 MNK Trade Setup - As of 10-5-18

MNK Chart Setup as of 10-5-18

The Trade Plan

MNK Trade Plan for 10-8-18

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, the 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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