Took me 10 years & a half to find a chart I could see a realistic outcome going into earnings. Hella frustrating - even more so because some (what looked to be) decent setups ended up getting destroyed come earnings. Regardless, this is a real particular type of short play to me just because of how reliable it's proven itself to be. Last ER play that sticks out to me w/ same pattern (FDS) - couldn't have played out better. 55 low MA (white) w/ issues of gaining traction above 180WMA - red flag. The curve is really the outlier for a target, just because it's more of a dip you can call if you know how to call the top before it. I usually like to see price right below 271% fib, & regardless of if it's in middle of 271%-314%, the 20EMA above 223% fib is / should be the short entry point. Any move above the 314% fib would obviously be a stop, but I think W & AMZN are the only tickers I've seen this setup on before that've gone above & beyond that point (let alone had it been upcoming earnings). If anything, my original idea on FDS was based on the white curve forming a pocket (how it typically does for a dip) @ or right around where dip should / would end up. In this case, the 55 rejection of 180 WMA may / may not be something more than a dip.
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