Hubert Senters here.
Let’s take a look at Netflix. We’ve got a problem here. Our most recent targets that we were saying are going to be hit. Had been hit. They’ve been met and that’s a problem. And this is a good problem having as the longer you’re trading and if you become profitable overtime you’re going to have this happening quite often.
You’re going to deal with it. First, the chart looks a little messed up because it’s got a lot of stuff on it. What I’m going to do is I use Ichimoku to let me know like hey, above the cloud is a buy. And then these other lines let me know where I can buy it to pullback and stuff like that.
I’m going to remove those. And I’m going to remove this little indicator down here because we don’t really need it for this explanation. When we’re looking at this and when we’re telling everybody here’s the next targets. Let me grab a pencil right here. I’ll show where we’re looking at.
What we do is we took this low and then this high and then this low. It went like this right here. We’re like ok, here’s the next targets $455, $470, $493, $515 and $531. It’s already taking out all of those. What are we going to do now? The only thing you can do is you can just re-calculate.
What we’re going to do is we’re going to remove this. And what you’re looking for here is this is the most recent low. And then you just have to back track a little bit so I will see if I can use this little circles here.
This is the most recent little low. You could use that whenever it doesn’t really qualify. But what you have to find is you have to find a high, a low. You’re supposed to have a low, a high and then a higher low. So if you go point one, point two and then point three. It’s going to look like this. Up, down and this point right here is going to be higher than that point.
And then it will equal up here. It will tell you like here are your next targets. So when we do that our targets right now are going to be already taken out. Let me show you that. I’m going to grab my Fib tool here. I’m just going to go right here. Point one, point two and then point three. And then you can see it’s taken all of those.
So what I have to do is I have to go back. I got to step back one more time. Now, there’s several ways that you can do this. I’m just going to pull it back and I’m going to consider these three areas. These three little support areas, that’s still the same thing. So what I’m going to do is I’m going to grab this and go like this right here.
It’s just a little hack way of doing it. The next target is going to be $562 and then we’ll wait for it to pullback more. If you don’t like that one you can pullback right back here and then you go like this right here. And then you’ll have $587 so $562 and then $587 and then $614.
Hubert.
