Today’s Featured Trade Idea is UAA.

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

UAA has been in a downtrend all summer. This includes several failures to break the downtrend. In the last week, a Trader’s Best Friend Signal started the last run up to retest. This time, UAA broke through and held a S/R level. Finally, on Wed. it printed a Bullish Engulfing signal that broke through and closed above the downtrend.

I will be looking for an inside day buy (on a successful retest of the downtrend), using a Stop below the S/R level that held the last 3 days. The 3 target prices come from S/R levels seen in daily and longer-term charts and represent a run up to the pre-downtrend highs.

Trader Vision shows us we should have a month until the next earnings report. It also tells us we have 3 Bullish (should be 4) and 3 Bearish Conditions. The larger number of bearish conditions is to be expected since this ticker has been in a downtrend for a few months.

TV20/20 tells us this trade plan offers a low risk ($105) to Stop, while giving a nice Reward potential at each of the 3 Target prices. If we follow this plan, we can achieve an overall trade of almost 5:1 Reward/Risk, while making almost 12% profit and banking $521.50 in gains.

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 UAA Trade Setup – As of 9-26-18

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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