GOOG is ready for bear pullback?
Updated
GOOG, after breaking down from a long-lasting channel price, found support at the 200-day MA and bounced off it.
It bounced right toward the line where the breakout occurred, which is often a pretty normal move.
Yesterday, the price formed a shooting star reversal pattern, indicating a high possibility of creating the Bear Pullback pattern, a very powerful pattern. I'll enter and explain where I'll personally have the entry point and why, as well as where the stop loss will be.
In this trade ill risk 400$. Here is my risk management.
Yesterday High was 142,19 and low 140,01, there fore price range for yesterday was 2,18$
STEPS:
1. Set Entry Price:
Below the closed candle’s low
1/8 of that candle’s trading range - 1/8 x $2.18= 0.2725
Range price calculation ----- H 142,19 minus L 140,01 = 2.18 is range
2. Use a Stop/Limit Order
Stop (trigger) = 1/8 below low. L 140,01 minus 0.2725 = 139,73
Limit = 5-10 cents less than stop price. 139,63
3. Attach Initial Stop-Loss
Above candle’s high by ¼ of the “trading range” - 1/4 $2.18 = 0.545
Manage based on last candle or moving avg. or S/R lines.
Stop loss will be at H 142,19 plus 0.545 = 142,74
4. Risk per share = Stop loss - Entry.
142,74 - 139,73 = 3,01 per share
Based on 400$ at risk ill buy 400/3.01= 132 shares for this trade possibilities
It bounced right toward the line where the breakout occurred, which is often a pretty normal move.
Yesterday, the price formed a shooting star reversal pattern, indicating a high possibility of creating the Bear Pullback pattern, a very powerful pattern. I'll enter and explain where I'll personally have the entry point and why, as well as where the stop loss will be.
In this trade ill risk 400$. Here is my risk management.
Yesterday High was 142,19 and low 140,01, there fore price range for yesterday was 2,18$
STEPS:
1. Set Entry Price:
Below the closed candle’s low
1/8 of that candle’s trading range - 1/8 x $2.18= 0.2725
Range price calculation ----- H 142,19 minus L 140,01 = 2.18 is range
2. Use a Stop/Limit Order
Stop (trigger) = 1/8 below low. L 140,01 minus 0.2725 = 139,73
Limit = 5-10 cents less than stop price. 139,63
3. Attach Initial Stop-Loss
Above candle’s high by ¼ of the “trading range” - 1/4 $2.18 = 0.545
Manage based on last candle or moving avg. or S/R lines.
Stop loss will be at H 142,19 plus 0.545 = 142,74
4. Risk per share = Stop loss - Entry.
142,74 - 139,73 = 3,01 per share
Based on 400$ at risk ill buy 400/3.01= 132 shares for this trade possibilities
Note
Trade did not trigger. Increase volume on last candle therefore bear pullback option failed.
Consistency is the key of success....
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