I figured I'd post another chart set-up similar to MSFT and TSLA etc. I feel like I'm becoming a perma-bear, and for good reasons!
* This is my observation and thoughts, intended for educational purposes ONLY, this is NOT financial advice*
Looking at SNAP:
I believe this is playing out as yet another ZIGZAG (5-3-5 / ABC) formation. We had our first 5 wave structure down (Wave A), and now I think we are at or near the end of Wave B for this current uptrend. For ZIGZAG formations, Wave B typically retraces between .764 and .854 % of the Wave A structure down - which would make our possible points of reversal (POR) / resistances $16.95 and $18.02. The price went to $18.05 in afterhours / premarket, however, anywhere between the .764 and .854 I see as good entries (current price is $17.60 and meets this criteria). My gameplan during ZigZag formations typically is to ladder shorts between the .764 - .854 and set a SL near or slightly above the previous high - which in this case, for example, I would set my SL right above the ATH of $19.75 to $19.80.
Targets for Wave C of a ZIGZAG formation are typically the .618, 1:1, 1:1.236 extensions of Wave A - on this chart I have only labeled and included the .618 and 1:1 extensions, I typically only account / expect (or take into consideration when making a decision to take a trade or not), to hit the .618, then I will reassess at that level - by the time you are nearing your first target, you generally have a better idea as to if you think the price will reverse there or not by checking various indicators and doing a proper wave / subwave count.
I am personally not being greedy on this trade, and am more than satisfied with simply filling the gap to the downside at $12.66, however, the .618 extension target is $10.57, which I will reassess upon having the gap filled.
With entering this trade at $18, placing a SL at $19.80, and targeting even $12.66 - that makes for a R:R of 2.97!
You can see most recently that we are setting higher highs with the price, but, setting lower highs on the RSI - Bearish Divergence.
I find this to be a comfortable trade and I will take a R:R of 3 any day of the week (so long as it is following my set of rules).
Thoughts on this post - Agree, Disagree, Comments?
If you enjoy my content, make sure to 'like' and 'subscribe'!
Thanks
* This is my observation and thoughts, intended for educational purposes ONLY, this is NOT financial advice*
Looking at SNAP:
I believe this is playing out as yet another ZIGZAG (5-3-5 / ABC) formation. We had our first 5 wave structure down (Wave A), and now I think we are at or near the end of Wave B for this current uptrend. For ZIGZAG formations, Wave B typically retraces between .764 and .854 % of the Wave A structure down - which would make our possible points of reversal (POR) / resistances $16.95 and $18.02. The price went to $18.05 in afterhours / premarket, however, anywhere between the .764 and .854 I see as good entries (current price is $17.60 and meets this criteria). My gameplan during ZigZag formations typically is to ladder shorts between the .764 - .854 and set a SL near or slightly above the previous high - which in this case, for example, I would set my SL right above the ATH of $19.75 to $19.80.
Targets for Wave C of a ZIGZAG formation are typically the .618, 1:1, 1:1.236 extensions of Wave A - on this chart I have only labeled and included the .618 and 1:1 extensions, I typically only account / expect (or take into consideration when making a decision to take a trade or not), to hit the .618, then I will reassess at that level - by the time you are nearing your first target, you generally have a better idea as to if you think the price will reverse there or not by checking various indicators and doing a proper wave / subwave count.
I am personally not being greedy on this trade, and am more than satisfied with simply filling the gap to the downside at $12.66, however, the .618 extension target is $10.57, which I will reassess upon having the gap filled.
With entering this trade at $18, placing a SL at $19.80, and targeting even $12.66 - that makes for a R:R of 2.97!
You can see most recently that we are setting higher highs with the price, but, setting lower highs on the RSI - Bearish Divergence.
I find this to be a comfortable trade and I will take a R:R of 3 any day of the week (so long as it is following my set of rules).
Thoughts on this post - Agree, Disagree, Comments?
If you enjoy my content, make sure to 'like' and 'subscribe'!
Thanks
Pesanan dibatalkan:
Sorry for the late update, didn't play out as anticipated, Stop was reached ( I exited well before).