Netflix exploded through $370 with a massive day of buying and solid volume. One of the few stocks on the day that produced good volume.
Definitely a trade to consider, but we need to see the WHOLE picture.
Going back nine months the stock price failed at this level each time. Good traders will be all over this stock today. Great traders will only be involved, with size, if it’s trading above the open.
A big part of trading success is NOT losing money. Staying away from “sucker plays.”
This setup has potential, but I’m forcing price action to be perfect before I allocate capital. This is where amateurs get separated from their money. They run scans, see big green or red candlesticks and jump in without the full picture. Without making a smart decision.
There’s more to trading than being long or short. There’s more to the decision. Keep reading and keep improving.
Have a great day.
Learn More About Reading the Tape in this Article
Jesse Livermore and Reading the Tape
Tape reading is not as popular as it was in the old days. Computers have made us lazy traders.
When I say the “old days,” I am referring to before 2007.
Some smart, savvy traders however, have adapted and are skillfully implementing tape reading in a much different way today. Chart reading is an element of tape reading, but they are not the same.
Our goal is to elevate from chart reader to tape reader. Learn how Livermore did it.