ROKU Trade on May 30, 2019 11:21 from PriceActionBarByBar: Tradervue User Stock Trades.

Double bottom Bull flag
JE
ROKU
May 30, 2019

Big Picture
Overall Market was Bearish to Neutral
Sector – Consumer Discretionary is Bearish to Neutral
ROKU is leading is corresponding stocks

Intraday Fundamentals
No News Catalyst
ATR: 4.44
RVOL: .85
Price Range 90-94
Short Float: 11.66%
Avg. Volume 13.6M

Technical Analysis – Long Term
Putting in all-time new highs and recently broke out of the spike and channel then pulled back to test the channel and now setting up a breakout pullback long on the daily chart

Technical Analysis – Midterm
Putting higher lows on the 3 day 15 minute chart with 93 being support and 94.40 being the resistance needed to break to confirm long entry

Technical Analysis – Short Term
Not all days that begin as a trend from the open result in strong trend days in the direction of the initial trend. The day started as a bear trend from the open. There was a small gap up on the open which was the breakout of the bull flag of the close, which turned into a failed breakout trend from the open bear trend. ROKU sold off for three bars before it put in a two-bar reversal which began the spike and channel. The channel turned into a three push wedge pattern.

Reading the Tape
As SPY turned up, I would immediately notice big orders coming down and my tape turning primarily green.

Trade Management
ROKU put in a double bottom bull flag; the signal bar was the bar before the outside up reversal bar that put in a double bottom with the bottom of the spike out of the first pullback (however, I got to the chart a bar late), having a signal bar that is the same direction of your trade increases probability of the trade. Since this was a play out of my TPP, I initiated a Tier 3 trade in the front and due to the small odd shape lot sized I booked half and half, instead of one tier at a time [(1/3) However, I plan on sticking with my original tier sizes in the future]. First profit target was the high of the day and the second profit target was the high of yesterday.

Trade Review
Once a market puts in a new high it generally will have a two-leg correction which is at least large enough for a scalper’s profit, however, the correction in this case was much larger, as is the case often is when the market makes a move up after starting a bear trend from the open, often it’ll then reverse back to close near the open, creating a doji on the daily chart. I should have stuck with ROKU and went short at the completion of the wedge reversal pattern once the double top was put in, the SPY had begun its decent down as well, ROKU put in a double bottom with the first pullback of the day before it turned up into the close.

Trade Idea
ROKU is setting up for a breakout pullback long, closing with a breakdown out of the bear flag and could continue the overall bull trend from the open