S Setup and Trade Plan

Since I was off on Thursday, I thought I'd put out a trade idea for Friday.

Today's Featured Trade Idea is S (Sprint).

Members can hear Rick's 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.

S has been in an uptrend since the beginning of summer and after a huge run up on earnings has put in a small profit-taking pullback which is now attempting to b/o as a J-hook pattern. At the bottom of the pullback it has traded in a tight box the last week, setting up a Pop-Out-of-the-Box patterns as well. We also had a Golden cross of the 50sma x 200sma 2 days ago, which will draw some interest from certain buyers.

I will be looking for that b/o Entry with a Stop at the bottom of the box (protected by 2 potential Support levels. The Targets are defined off S/R levels from the Weekly chart.

Trader Vision tells us that earnings are out of the way for 2.5mo. It also shows that we have 6 Bullish conditions versus no Bearish conditions, making this an attractive setup for a long.

TV20/20 shows us that we needed to tighten the Entry and Stop by just a couple cents in order to get > 2:1 Reward/Risk at that 1st Target. However, once adjusted (realistically), this Trade Plan has the potential to be a nice trade. If we are able to achieve all 3 Targets, we will net a 10.25% profit ($412.50) versus an initial risk of only $117...giving us a 3.53:1 Reward/Risk ratio.

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 S Trade Setup - As of 8-16-18

S Chart Setup as of 8-17-18

The Trade Plan

S Trade Plan for 8-17-18

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...

 


 

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.

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

Comments are closed.

Skip to toolbar