We’re seeing a change from our typical “buy the dip” market where we look to buy the dip at the 21 exponential moving average (EMA) and take it to the upside. With bearish momentum, we could see a transition to a “short the rally” market where we short the market at the 21 EMA for a flush to about -2 to -3 average true range (ATR) extensions and look for a bounce back to the 21 EMA to repeat the process.
In today’s video, we’ll review which spots to look for to take our short positions. It’s important to note which setups we want to avoid and which setups are maintaining their bullish structure in volatile market conditions to take long, like NFLX. Be patient and disciplined in this market and focus on the path of least resistance.
Stay Focused!