NFLX Trade on Oct 12, 2021 09:33 from JRockTrades: Tradervue User Stock Trades.

On the daily chart, it looked like if NFLX could spike into the 636-638 area, that could be a likely spot for a failure. It looked like it could trade down to the pre-market low and possibly lower to 620 area (1 ATR).

I started taking a short position in the mid 630's to as high as 637.36. NFLX reversed from very near this point and sold hard. I started to cover my shorts several dollars below my lowest entry. I covered at increasing targets and shorted pops. One of these din't work, but the other 2 did. Ultimately the volume on the day was at best average and I completely closed my position on a big green bar about when I needed to be done for the day anyways.

Scaling into a position isn't something I normally do and haven't been completely comfortable with, but this worked really well and gives me more confidence in going in with a plan. I think my total risk, had I hit out above 640 would have been about $75, making this overall decent risk to reward.

What could I do better? - There was a clear entry at 10:50am when NFLX crossed a trendline and dropped VWAP simultaneously. I had just taken a stop near the same prices and passed, but I did acknowledge it at the time. This trade would have worked really well and quickly. There are consequences for crossing a trendline like that and next time I will use this as good information.