Hubert Senters here.
Got a question from a viewer.
I have been watching FSLY stock. It was such a winner this year but ran into trouble in mid-Oct.
I am tempted to take a nibble on buying this stock but it would not be a trend trade like you have taught us plus the ADX is only at $15-ish.
The PAR_SAR building buy plots and it’s holding above it’s turning line today, are tempting to buy some here if it makes a run.
My bigger concern is the low ADX. What are your thoughts?
Michael.
What you’re suffering from is you had a nice winner. It sounds like it got you a little bit back in October now. You might be chasing. I don’t know with the stock yet so let’s take a look before I judge you, Michael.
Let’s take a look really quick. So I’m looking at here and we can see that it is definitely not in the direction trend that you want for.
I can see what you’re saying here on the parabolic dots. You do have a counter trend signal which can be bought above the yellow headed towards the purple.
If it’s above the purple it could potentially go to the belly of the cloud there. It is non-trending. Tbe bulls have control. Let’s zoom in here and see what the ADX is actually doing though.
Yeah. So it’s not bottomed out. It’s actually going a little bit lower. So for me, I’d just wait. But it sounds like you want to pursue the thing. If you do it, do it smaller size than you normally would.
And it was me I would just wait until it got above the cloud again and then buy it. It doesn’t look like it’s got a ton higher than like the $133.
So you’d be getting long around $100 and $105 and round it to about $130 and $140 maybe. The only problem with this if you do get in here you’re going to have to use a tight stop-loss and you might get a stop out so.
Since it’s not trending and you’re not on the right side of the trend I would say just pass. That would be just me. I would much rather you learn how to follow your own trading plan as opposed to like hey, if this thing runs I’m going to get it.
That stuff is usually relcoated for day trading. When you’re in that type of mentality like hey, I don’t care which way you go today, I’m going to go with you. That’s day trading.
When you’re swing trading you kind of got pick a direction and kind of you have to place a flag and stand go this is the long or this is the short so that’s how I look at that. Hopefully that help you out.
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Good luck. Hope it helps. See you on the next video.
Hubert.
