Some ideas on the most significant drop in PYPL history.
PYPL is on my trading watchlist because, as a growth stock, it has been in a corrective situation for a reasonable amount of time, 284 days to be exact, from February 16, 2021. When we have this type of consolidation, it is easy to look at the past and ask a simple question. How many times did a similar situation like the current one has happened?
As you can see, there are 3 situations, including this one, that we can compare and understand to look for a good spot to develop setups with a goods ods as evolving as expected + High risk to reward ratio.
Let's check all of them.
AUG2015 - APR2017
JUL2019 - MAY2020
FEB2021 - YTD
I don't have a final idea of what I want to trade here. However, I'm certain I will not develop any bullish setup below the current descending trendline. Once the price gets close to it, I will develop the specific filter I'm waiting for. Based on past behavior, if I see a breakout of the descending trendline + a clear filter (not defined yet), I think it is a good opportunity to look for setups with a target on the previous high and beyond. That would mean R/R ratios above 5 or 6 (if we can catch that), and at the same time, we can absorb multiple stop loss, and even if we get it right on the 4th attempt; we still are able to make profits.
Feel free to add any ideas or thoughts about this in the comments! Thanks for reading.
As you can see, there are 3 situations, including this one, that we can compare and understand to look for a good spot to develop setups with a goods ods as evolving as expected + High risk to reward ratio.
Let's check all of them.
AUG2015 - APR2017
JUL2019 - MAY2020
FEB2021 - YTD
I don't have a final idea of what I want to trade here. However, I'm certain I will not develop any bullish setup below the current descending trendline. Once the price gets close to it, I will develop the specific filter I'm waiting for. Based on past behavior, if I see a breakout of the descending trendline + a clear filter (not defined yet), I think it is a good opportunity to look for setups with a target on the previous high and beyond. That would mean R/R ratios above 5 or 6 (if we can catch that), and at the same time, we can absorb multiple stop loss, and even if we get it right on the 4th attempt; we still are able to make profits.
Feel free to add any ideas or thoughts about this in the comments! Thanks for reading.
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.