WRD Setup and Trade Plan

Today's Featured Trade Idea is WRD.

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.

Note: Beware the overall market indecision. Indecisive candles with a short-term bear trend, long-term bull trend and support close below and resistance close above.

WRD broke out of its downtrend in September and is coming out of a recent Inverted Head & Shoulders pattern. After the most recent strong bullish run, it has consolidated for a couple weeks, printing a couple Bullish signals during this time. This includes a quasi-Doji Continuation signal on the breakout Tuesday.

I will look for an inside day buy with a Stop blow the consolidation area bodies and Targets set off of Resistance levels above.

Trader Vision tells us that we should have about a month until WRD reports again. It also shows us that we have 4 Bullish conditions and 2 Bearish conditions in the chart setup. Both the bearish long-term symbol bias and the short-term market bias are expected with this chart and market. Also, the last 3 candles are not technically a Doji Continuation pattern but do convey the same sentiment.

TV20/20 tells us this plan offers a 2.22:1 Reward/Risk to the 1st Target, with a risk to Stop-out of $135. It also tells us the ticker must reach $26.43 in order to achieve our Trade Goal. Still, if we can sell half there and the rest at Target #2, we can achieve almost 3:1 Reward/Risk and book a $400 profit.

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 WRD Trade Setup - As of 10-9-18

WRD Chart Setup as of 10-9-18

The Trade Plan

WRD Trade Plan for 10-10-18

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.


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