I'd like to complement this with an view based purely on formations. FB made two ABCDs (abcd1 & abcd2; narrow red lines indicate ab and cd). abcd1 featured a ~23.6% corrections. In abcd2 the correction was ~34%.
The latest correction to a low of $45.53 is way too large to 'fit into' an based on the upleg in the last two weeks of Sept. (see abcd3??)
So, reluctant as I am to contemplate that FB is going higher, it looks like it's in the throes of a mothership (heavy red): the correction fits perfectly (see big pale candystriped Fib box, especially the dotted red line).
The d of abcd3 ($54.82) is likely to provide some resistance; if we're already there that would imply retracing to find a 'c' somewhere in the orange box. Hence: short - but only in the very near term, and after signs of a top.
If FB then takes out that top, the mothership's P & D - $58.96 & $72.59 respectively - will be calling, and would be places to expect turning points. (And short the **** out of this blight upon humanity :)
Anyway, I'm just making this stuff up ;) Good luck!
He mentions "$54 and change", so I've double checked my chart, and in fact had a couple of points slightly off (just because I hadn't zoomed in). With the pivots accurately located I get $54.32, which is consistent, considering BATS isn't a consolidated datafeed, and might be off a bit at times:
(I'm not currently a subscriber of his; I believe I've picked up the essentials of his method via lengthy and close study of the relevant publicly available materials, so it was reassuring to hear this. I plan to subscribe soon.)
Got a buy stop in at 51.84, stop loss (sell stop) 51.36. (Paper tradin' & it took me a while to figure out how to enter that order combination :p)
Wonder if it might not turn down if it touches that level again; it's made lower highs since crossing it. :s
I misidentified the trend; it was a mistake to base it on the movement yesterday. The wide-range up-bar that flushed above the less steep channel (non-bold red) was a Wyckoffian 'upthrust'. Smart money (hence the relatively large volumes) sucking in longs. The lack of volume in the following three bars indicates lack of interest in buying from smart money. Just selling what they could without depressing the price...