Hubert Senters here.
In yesterday’s video we were talking about potential bracket trades on a couple of different things. Let’s do a follow up on these two so you can understand the overall concept and the procedures for this trade. So yesterday would have been a talk about if it goes above or below these areas.
Now, in Twitter in this case it went below $48.82 but then not close below so. This is why it’s important for you to have your rule sets already in play before you get amidst to slinging money at trades. If it was a trade below $48.82 in that case you’re probably stopped out.
If it’s a close below you don’t have a trade on this setup because it has not close above either $50.57 or below $48.82. Now, let’s take a look at Netflix. If your rule is yes as soon as it touches one of those lines I want to get long or short then you’ve got to trade that thing.
But you probably got stopped out but you might be stopped out tomorrow because you would have short it at $48.82. And your cover position will be at $50.57. NFLX, Netflix is an example of one that work in both cases. In this case, you have got a trade above $506.84 it would be a potential long and a trade below $488.48 would be a potential short if it either trades or closes below in this case it did both and would be an active short.
Good luck. Hope it helps. See you on the next video.
Hubert.
