Roku - Death by SymmetryThis week is a perfect warning shot for similar rogue sell-offs to come in the near future. During such times, it is always good to have a default short play in your back pocket. The price action on this chart is so symmetrical that the probability of downward pattern completion is much higher than it would otherwise be. So far, the pattern has maintained its symmetry, despite the strange-looking shape at first glance.
If the market had an equal number of bullish days as bearish days over the chart's timeframe, I suspect that the symmetrical, harmonic pattern would be much more noticeable.
This is a solid go-to when you're stuck (think two days ago when your perfect bullish setup got sideswiped).
Going into next week without at least two of these kinds of plays is a mistake, especially if you tend to swing trade more often than you day trade.
NASDAQ:ROKU
