$RBLX - Classic case of "The trend is your friend until the end"
$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.
Join the link in my bio for a chill trading room and get in these trades before they happen!
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
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.
Join the link in my bio for a chill trading room and get in these trades before they happen!
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