Since I focus on stocks that gap, I noticed one specific pattern which deserves to be its own trading strategy. For the lack of a better name, I just call it ‘Reversal Setup’. Here are the details.
Friday’s Netflix short was an example of the continuation trades I take from time to time. Continuation trades are defined as trade opportunities in the direction of the perceived trend on the time frame being traded. Since roughly 30% of my trades fall in this category, let me share the rationale for the Friday’s trade.
I took 2 short trades on Friday: ROKU and NFLX. In this post I would like to share reasons for shorting NFLX, why I held my short position for almost an entire trading session and when I covered my short position.