In a previous post, we explained that we were waiting for a retest to develop setups after the breakout of the current range. You can check all the processes on related ideas.
Now the situation is ready. How will we proceed from here?
The setup execution is pretty straightforward; we will open bullish setups on a new ATH and define our stop loss below the current correction. We don't know yet how deep the correction will be, but we will keep moving the stop loss until we think this is no longer a correction but an evident bearish impulse.
The target we will be using at the moment is the Fibo Extensions of the whole range that was broken. Final Target: 772
The Risk rewards ratio we can expect on a setup like this is about 2 (however most of the cases in the past, the price goes far beyond that)
It's important to say that this setup after the breakout of a range on an ATH we have tested since the beginning of the NFLX chart, and our conclusions showed us that is a profitable pattern to trade. Why are we saying this? Because we have seen that sometimes the price executes the order, then goes directly to the stop loss, and the next movement is the beginning of the impulse. Based on that, we are willing to trade the same situation two consecutive times if the first pattern fails.
We will be risking 1.5% of our capital on this setup. The expected duration of the movement can go between 150 days to 250 days. (Patience patience, my friend)
Thanks for reading! Please share your thoughts or idea in the comments relative to NFLX.
Now the situation is ready. How will we proceed from here?
The setup execution is pretty straightforward; we will open bullish setups on a new ATH and define our stop loss below the current correction. We don't know yet how deep the correction will be, but we will keep moving the stop loss until we think this is no longer a correction but an evident bearish impulse.
The target we will be using at the moment is the Fibo Extensions of the whole range that was broken. Final Target: 772
The Risk rewards ratio we can expect on a setup like this is about 2 (however most of the cases in the past, the price goes far beyond that)
It's important to say that this setup after the breakout of a range on an ATH we have tested since the beginning of the NFLX chart, and our conclusions showed us that is a profitable pattern to trade. Why are we saying this? Because we have seen that sometimes the price executes the order, then goes directly to the stop loss, and the next movement is the beginning of the impulse. Based on that, we are willing to trade the same situation two consecutive times if the first pattern fails.
We will be risking 1.5% of our capital on this setup. The expected duration of the movement can go between 150 days to 250 days. (Patience patience, my friend)
Thanks for reading! Please share your thoughts or idea in the comments relative to NFLX.
