The filter for the bullish view is READY on Square inc.Today we will speak about the current situation on SQ (we made a post a few weeks ago. You can check it on related ideas)
At the moment, we think the bullish scenario is the most probable one, and we are ready to define the activation levels based on the previous analysis.
What were we waiting for?
We were looking for a first breakout attempt on the current corrective situation. That happened, and we have a small correction on the edge of the current one.
What is the activation Level?
Is the green horizontal line where we think that if the price reaches it, that would confirm our bullish view.
What about cancelation levels?
Here you have different possibilities. If you want to trade this small correction with a risk-reward ratio probably above 6, your invalidation level will be below it. (be open to the idea that trading scenarios like this require some stop losses before catching the actual movement)
If you are more conservative, you can define an invalidation level that may be below the inner ascending trendline for the current correction.
If you are extremely conservative, you can define your stop loss below the full structure (186.00)
That's up to you. What is the same for all the scenarios is the Activation Level.
What happens if the price moves in a completely different way?
Either you have a stop loss, or you never trade because the price never reached the activation level; it is that simple. That's the reason risk management IS SO IMPORTANT. You must be able to take losses without that moving your emotions everywhere.
How long can It take for a movement like this?
150 - 250 days.
Thanks for reading, guys!
