Today’s Featured Trade Idea is PSTG.

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

PSTG has been in a bullish trend since early March of 2017. After a summer downtrend, it resumed a strong rally in August, taking a small amount of profit after the big pop. At this point the Bulls have resumed control and broken out of the consolidation/J-hook type pattern.

On Wed. PSTG put in a very long-legged Doji which shows good strength relative to the QQQ and NASDAQ charts. I will look for an Entry about where it closed, using Fib. Ext. target prices at these all-time highs. My Stop will be just below a shelf that was recent resistance and support.

Trader Vision shows us that we have 2.5 months until the next earnings report. It also shows us that this chart is displaying 5 Bullish Conditions versus no Bearish Conditions. This makes it a nice Chart Setup to consider for a trade.

TV20/20 also tells us this plan gives us only $127.50 in “Risk to Stop Out” while also having the potential for $307.50 in profit at the 1st Target price. This is a respectable 2.41:1 Reward/Risk ratio.

However, if sell half at that target, move up our Stop and ride the remainder up to the 2nd Target price, overall we can achieve a 3.26:1 Reward/Risk ($416.25:127.50). This would make for a trade with over 10% profit potential.

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 Trade Setup – As of 9-5-18

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

***************************************************************************************************

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.

***************************************************************************************************