Let’s take a look at Xilinx, XLNX. Yeah. The daily buy signal today. It is aggressive one day above the cloud. Just barely. If you want to wait for the second or the third signal you can depending on your risk profile in other words if you like a lot of risk. This is a trade for you. If you don’t like a lot of risks you might want to wait a few days.
So the trade will be an entry of $71.44, stop-loss would have to be around $67.90 which is a decent stop-loss and your overall target would be around $78. Right now, the risk reward ratio doesn’t really reward that amount of risk that you’re taking. So in other words, here’s what I mean by that.
Let’s say you went long here. Okay. There’s your box of risk. Well, here is your box of reward. So this box will fit into that box probably only twice. Let’s just double check this. See. Oh, hold on. Let’s see what my little math here will do.
So I see once. Yeah. See. It’s only going to fit one. Not even twice if you just overlap those two so it’s about a risk in one to make one and a half which is not a great risk reward ratio. So what you might want to do is let it trade a couple more days up here and let this turning line or the standard line trail the stop-Loss or you could use it right off the bat a tighter stop-loss is all I would do.
I’d say let’s just go right here and use the bottom of the day. Now, we’re talking. Now this box will fit in there at least three times. Much better trade by tightening down the stop-loss on the trade. So it’ll be an entry $71.44, stop-loss would be in the area of $69.71. And target would be around $78.
Good luck. Hope it helps and I’ll see you on the next video.
Hubert.
