OI Setup and Trade Plan

Today’s Featured Trade Idea is OI.

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.

OI popped into a Rounded Bottom Breakout pattern on 7/24 (off earnings) and has consolidated with a little profit taking since. It has a Resistance level just overhead and the 50sma not too far below. I will be looking for a breakout Entry using the Thursday Candle Body Low as a Stop and next Resistance (off Weekly) as 1st Target. The Second Target price is another Resistance level as well as the 200sma.

Trader Vision shows us we have 3 months until earnings and 5 Bullish versus 1 Bearish condition. It also tells us that this plan would give us $145 Risk to Stop from the Entry and $383 (2.64:1 Reward/Risk) if we sold the entire position at the First Target. If we sold half there and held the rest until the Second Target we could make $465 (3.2:1) overall.

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 OI Trade Setup – As of 7-26-18

OI chart as of 7-26-18


The Trade Plan

OI Trade Plan for 7-27-18


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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