RBLX broke its massive uptrend and made a solid move south. Puts are finally paying off as this stock is due for a correction. Let's break down what happened here and how you can profit from similar price action.
Step 1: Find a trend and draw a trendline. The bigger the time frame, the stronger of a trend it is.
Step 2: Wait for a break. Do not enter simply because the stock is overbought, enter on confirmation and confirmation ONLY!
Step 3: Wait for confirmation, see chart for details
Step 4: Define your SL and price targets. These can be based on a variety of factors, but this is mine for
RBLX Since this is a major trend break I have a tight SL. As any move further north would invalidate this trend. This stock also sits at a major resistance giving me more confidence in this trade.
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Cheers!
Bonus tip: It can also help to follow the overall market,
SPY , 
QQQ and the broader market were performing weak today which also helped my bias 
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.