Today’s Featured Trade Idea is TRUE.

Members can join us in Trading Room #1 as Rick reviews the TRUE setup and all our member 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.

TRUE broke it’s downtrend in June and has been trending Bullish all summer. after it’s last big leg higher (on earnings) it took profit and consolidated for a couple weeks. Then Wed. bears tried to drive it down. However, at the trend line the Bulls stepped in and drove it back up, resulting in a large Bullish Engulfing signal.

I will look for a slight inside day Entry using the high of the big Earnings candle as the 1st Target and the alignment of Weekly support/resistance level and the 23.6% Fib Extension as the 2nd Target. The Stop will be below Wed. Candle body and the Support level from the last couple weeks.

Trader Vision shows us that earnings are out of the way and we have 2.5mo until they come around again. It also tells us that we have 6 Bullish Conditions versus 1 Bearish
Condition (the short-term consolidation trend prior to Wed. b/o candle).

TV20/20 also allowed us to make and then easily tune a plan that meets our Trade Goal. It shows us the current plan delivers 2.25:1 Reward/Risk at the 1st Target and 3.12:1 overall at the 2nd Target ($375/$120). In addition, it tells us that the trade only needs to reach $13.87 in order to sell the entire position and make our Trade Goal.

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 TRUE Trade Setup – As of 8-29-18

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

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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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