NFLX is Going to Go For It

That second pullback was positive too, so NFL:X is going for the move discussed over the weekend, it's when that move goes negative that I want either an add-to equity or put trade on NFLX.

In case you didn't see it or don't remember it, this is the NFLX post, what I'm looking for from over the weekend. This is all from over the weekend, the only update is above.


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"These are very simple trades to figure out if you understand the headfake concept, they are also very good entries very soon if you can get through the emotional stress of placing an order against what appears to be strong price action."

NFLX has the exact same theme I was conveying in Friday's post, the HYG and XLF posts specifically...

 Just like XLF has a perfect, VERY obvious range (really resistance is what technical traders are watching for) which sets up an easy head fake move and the 1, 2 and some 3 min charts support that (intraday positives), the 5 min and beyond charts also support that because they are indeed very negative, a head-fake move is just a breakout unless there's distribution in to it and it is clear it will fail, most of the time we know this before the head fake even occurs based on the charts in place, this would be one of those examples. The triangle that is in place is considered a consolidation/continuation triangle, technical (retail) traders expect a breakout to the upside, that's why they make such good head fake moves because Wall St. knows , as do we and anyone paying attention, just what retail TA traders will do, which makes it very easy to use it to your advantage.

 NFLX 1 min, not a strong chart, but again, look where it improves...Right at the "post op-ex pin" area around 2:00 Friday.

There's no strength too far beyond that, nothing at 5 mins.

And looking at it from a "Reversal Process", it is nearly a perfect set up. The symmetry we see in the "reversal process" rather than an event, is already there. One of the last things we see in this process (in a downside reversal) is an upside head fake move; for that to happen, a technical pattern retail will chase has to be in place, it just so happens it is and look at the 3C chart,(the four stages) 1) Accumulation, 2) Mark-up, 3) Distribution and it's only missing stage 4, Decline.

It goes without saying, NFLX is a nice looking trade, we want the trade to come to us with high probabilities (head fake), a better entry and lower risk (again both provided by the head fake) and timing (again a head fake moves is one of the ;last things to happen before a reversal.