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Dragonflydoji

This Changes Things...Kinda...AMZN printed a Dragonfly Doji today, which is usually a good sign of a reversal when seen at the bottom of a downtrend. See attached image below. So, what do we do now? Well, here's my take. AMZN is a buy above the top wick of the dragonfly, so over 1770 tomorrow. However, the tilt in AMZN remains bearish until 1836 is broken and closed above with conviction. Until that point happens, we may remain within the channel being formed now. Two ways to play that--One is to short at top of channel, go long at the bottom and try to make money on the whiplash price action between the support and resistance. The second is to wait for break below the support or above the resistance to enter. There is an argument to be made for either, that's a personal trading style decision. Personally, still in my Aug 30 put, still in the black just a bit. Now I will decide tomorrow based on price action. Above 1770 I will go long via Sept 06 call options, probably around a 2000 call or so. If it stays below 1770 I think I may roll my put option to the Sept 06 put to gain some time for this consolidation pattern to complete. The Stochastic did not react in any way whatsover to the move today, and combine that with the already bearish tilt of the consolidation/continuation pattern we appear to be in, and my money still thinks down is the more productive bet. But I have been wrong once before, I think it was in 1998 or so...lmfao Honestly, best wishes whatever you decide, there is plenty of money to be made both ways here. I still like short medium term, possible bounce short term. Will reevaluate after tomorrows action, see what the price movement is trying to tell us. Happy hunting, and GLTA!! slideplayer.com
NASDAQ:AMZN
by UnknownUnicorn1314136
3