OKTA Setup and Trade Plan

Today’s Featured Trade Idea is OKTA.

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.

OKTA has been in a bearish trend for a month and a half. It broke the 50sma on a strong down move rallied back and failed the 50sma again on an Evening Star signal. This is a classic “Ice Hole” or “Blue Ice Failure.” The next expected target would be the 200sma below. It is also forming a “Dreaded-h” pattern that is near b/o.

I will look to Enter Short just below the next Support level and use a Stop protected by a couple resistance levels. The targets are defined by S/R levels from the Weekly chart.

Trader Vision shows us that we have plenty of time until the next earnings report. It also shows us the setup has 2 bullish and 4 Bearish conditions (and that Evening Star signal on Thursday).

TV20/20 tells us this plan offers 2:1 Reward/Risk at the 1st Target and that we do not even need to reach Target #1 to achieve our Trade Goal. That said, it requires a very large position size for this account to do so. If we can sell half at Target #1 and the rest at the 2nd Target, we’d make a tidy 10.6% for almost a 2:1 Reward/Risk ($585/$235).

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 OKTA Trade Setup – As of 10-19-18

OKTA Chart Setup as of 10-19-18

The Trade Plan

OKTA Trade Plan for 10-22-18

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…



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.


Comments are closed.

Skip to toolbar