Netflix, Inc.Long
NETFLIX : Everybody want to go long!!. Do we enter long??
Netflix has an impeccable technical aspect to date. NO ONE looking at the chart could have any doubts that its fundamentals are good and that it is IMPOSSIBLE not to invest in this stock. The problem comes when we are in a hurry and especially if we leverage ourselves. RUSHES are not good and LEVERAGE must be managed correctly.
--> What is basic in a leveraged operation?
Enter after a PULLBACK. If we do not enter after a pullback, our entry, although it could be good, would run the risk of accumulating MANY LOSSES or of SKIPPING THE STOP LOSS. That is why it is basic in a leveraged operation to enter after a pullback.
--> Has Netflix made a pullback?
That's right!! The pullback it has made is almost 50% Fibonacci and therefore, we are now ready to enter long. BUT, is it a good time to enter long? It depends on the strategy one has. In IVO we DO NOT ENTER with a pullback, we enter after a pullback + a bullish signal + another confirmation signal.
--> Has the chart given us any bullish warning?
Yes. On Friday at 3:30 pm the chart gave us bullish MOMENTUM ( Bull ) in H4 timeframe.
What are we missing? That the FORCE also turns bullish ( Bull ). An AGGRESSIVE investor profile WOULD ALREADY ENTER LONG, but if our RISK profile is LESS AGGRESSIVE, we have to wait for the FORCE to indicate bullish ( Bull ).
--> When will the FORCE turn bullish?
With a candle close in H4 timeframe above 884. At that point the FORCE will turn bullish and the highs will be attacked in hours-days.
--> Any problems along the way?
Yes. Tomorrow Tuesday 21st the results will be published and if they are unfavorable, the price could continue to fall, but if the results are as expected or better than expected, the price will easily exceed 884.
------------------------------------------------
Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 884.
POSITION 1 (TP1): We close the first position in the 935 area (+5.7%)
--> Stop Loss at 853 (-3.5%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-3.5%) (coinciding with 853 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (935).
-------------------------------------------
SET UP EXPLANATIONS
*** How do you know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: IF the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very strong and stable price trends can be exploited, maximizing profits.
--> What is basic in a leveraged operation?
Enter after a PULLBACK. If we do not enter after a pullback, our entry, although it could be good, would run the risk of accumulating MANY LOSSES or of SKIPPING THE STOP LOSS. That is why it is basic in a leveraged operation to enter after a pullback.
--> Has Netflix made a pullback?
That's right!! The pullback it has made is almost 50% Fibonacci and therefore, we are now ready to enter long. BUT, is it a good time to enter long? It depends on the strategy one has. In IVO we DO NOT ENTER with a pullback, we enter after a pullback + a bullish signal + another confirmation signal.
--> Has the chart given us any bullish warning?
Yes. On Friday at 3:30 pm the chart gave us bullish MOMENTUM ( Bull ) in H4 timeframe.
What are we missing? That the FORCE also turns bullish ( Bull ). An AGGRESSIVE investor profile WOULD ALREADY ENTER LONG, but if our RISK profile is LESS AGGRESSIVE, we have to wait for the FORCE to indicate bullish ( Bull ).
--> When will the FORCE turn bullish?
With a candle close in H4 timeframe above 884. At that point the FORCE will turn bullish and the highs will be attacked in hours-days.
--> Any problems along the way?
Yes. Tomorrow Tuesday 21st the results will be published and if they are unfavorable, the price could continue to fall, but if the results are as expected or better than expected, the price will easily exceed 884.
------------------------------------------------
Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 884.
POSITION 1 (TP1): We close the first position in the 935 area (+5.7%)
--> Stop Loss at 853 (-3.5%).
POSITION 2 (TP2): We open a Trailing Stop type position.
--> Initial dynamic Stop Loss at (-3.5%) (coinciding with 853 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (935).
-------------------------------------------
SET UP EXPLANATIONS
*** How do you know which 2 long positions to open? Let's take an example: If we want to invest 2,000 euros in the stock, what we do is divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to continue gaining value when the market price moves in a favorable direction, but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
-->Example: IF the dynamic Stop Loss is at -1%, it means that if the price drops by -1%, the position will be closed. If the price rises, the Stop Loss also rises to maintain that -1% in the rises, therefore, the risk is increasingly lower until the position becomes profitable. In this way, very strong and stable price trends can be exploited, maximizing profits.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.