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Double Top

Was the ROKU sell-off predictable?I warned you about than since i saw the Double Top Bearish Chart Pattern of ROKU last year: and then the Netflix earnings, thinking ROKU, as a former Netflix project, will be next: Now, after the earnings, i see a retracement to the May 2019 level. Net Sales: $865.3 million vs. $894 million expected Diluted EPS: $0.18 vs. $0.05 expected For 2022 Roku sees adjusted EBITDA similar to 2020 levels of $150 million vs The Street estimates of $535 million in adjusted operating profits.
NASDAQ:ROKUShort
by TopgOptions
1
EURUSD Double-top Is Approaching TargetHappy Valentines Day Traders! Today, we are on the EUR/USD pair. We are looking at the 4-Hour time frame. We are checking back in to see how our EURUSD Double-top trade has played out and we are approaching the target that was set up last week. Remember that we were waiting for the retrace into the neck zone. Well, let’s have a look at the chart. Notice how that retrace came in beautifully before creating that large impulsive bearish candle. We also have a strong bearish volume accompanying it. This volume added some confidence into the position as our entry was on the retrace. Is it too soon to take profits? Well, we always have to make sure that we stick to our strategy as trading is a numbers game. We have to think in probabilities. We can’t go and change every single trade based on how we are feeling. Emotions have a strange way of controlling us. So having said that, we have approached the price structure where the target lies. It’s not quite in there yet, however, if your stop loss was a bit tighter this could have easily been over 1/4 Risk/Reward. I am confident in my ability to wait as that bearish volume is suggesting to me that price still may have some way to fall in that area. Hope you all have a wonderful week and I will be seeing you all on the next one!
Short
by TheVortexTrader
SPX: Could it reverse and fill the GAP at 4,652?Hello traders and investors! Let’s see how the SPX is doing today. First, in the 1h chart, it lost the support level we mentioned yesterday, triggering a bearish reaction, as expected. The correction was quite sharp, but is this a reason to panic? To be honest, I was expecting a sharper correction, maybe to the previous support at the black line, but the index is trying to find support already. Yes, it still could retest the 21 ema and do a Dead Cat Bounce all the way down to 4,453. However, I'm not too convinced of that, and it is important to look at the Futures for more clues: The index hit its previous support today at night, at the 4,456 (red line), and it is bouncing back up nicely. It found a resistance at the 50% Fibonacci’s Retracement, and it is trying to stabilize today. As far as I know, the best moments to buy are near support levels, like red line, and sell near resistances, like the blue line. Given the way the SPX and the Futures are looking, it is plausible to see more upside potential, the question is, for how long it could go up. Regardless of how the index reacts in the 1h chart, I still see the 38.2% retracement in the daily chart as the most important support level for the mid-term. By losing this retracement, it would trigger a Double Top chart pattern, and it could easily slip towards the 61.8% retracement. If we’ll see a Dead Cat Bounce or not, we don’t know yet, as we lack confirmation on the charts. Any comment on that would be just a guess. However, if the SPX breaks the resistance (previous support) at 4,531, this could be a nice false breakout, and the index might trigger a pivot point that could help it to break the resistance at 4,583 and fill the next gap at 4,652. It’ll depend on how the index will close today. I’ll keep you guys updated, as always. If you want to keep in touch with my daily analysis on indices and stocks, remember to follow me, and to support this idea if it helped you. Have a good weekend. Nathan.
SP:SPX
by Nathan_The_Finance_Hydra
2
BTCUSDTPRICE ACTION: • In an uptrend, price action finds first resistance (1), where it reverses direction and goes downwards till finding support (2). • Price action reverses direction from (2) and goes upwards till finding second resistance (3), which will be -around- the same rate of the first resistance (1). • The pattern is completed when price action reverse direction from the second resistance (3) and goes downwards till it breaks the lower support at point (4). NOTES: • After the breakout, retesting the pattern's lower support that turned to resistance is highly possible. • Volume is usually high when reversing from the second resistance (3), as well as when breaking the pattern's lower support. TRADING THE PATTERN • Trade entry: the pattern is traded after price action breaks the pattern's lower support at point (4). • Take profit: identified by measuring the (upper border - lower border) distance, which is the vertical distance between point (2) and either (1 or 3 - according to which one was used to define the upper border), that measurement is then applied from the breakout point (4). • Stop loss: the pattern's support (2) which turned into resistance after the breakout.
Short
by Adam-Robinson
Double Top On EURUSD 4-Hour. Will it play out?Good morning! Today, we are on the EUR/USD pair. We are looking at the 4-Hour time frame. It seems we have a double top at play here. However, I’m not convinced about the neck zone ( Liquidity zone ) We have full (pure) divergence across the MACD. We also have a large bullish volume break-out bar. This could mean that it’s a bull trap and that price will move down further which would be added confluence. However, I want to see further impulse lows closing below the neck zone in its entirety before a retrace up to the top of the neck zone. If this happens then I would short this pair at that point and my targets would be the previous price structure which I’ve shown on the chart. It is a Friday so this could take some time to play out. Either way, it’s one to watch as we can always learn from these patterns. Hope you all have a great weekend and I will be seeing you all on the next one!
Short
by TheVortexTrader