BIG M pattern for ROKU (Short and Long Position Setups):
Updated
For a Big M pattern to play out
1. the trend start to the first peak (A) should be a big rise >60% within a short time <158 days, in this case, the rise is 119% and 32 days days
2. the two peaks should have a difference of at most 1%, in this case, the difference is 2.65% between the closing prices of A and C, however, considering the volatility of this stock I will still consider it a BIG M but play it safe.
3. the stock confirms the Big M when the price closes below the closing price of the valley (C) the last day (5/15) it closed at 112.95. Once it closes below 112.89 we can confirm a big M patter
Buy set up 1: Because the closing price is still not less than 112.89, go long on the open (5/18), and then sell the next day (5/19) IF the price closes below 112.89 (because if price closes below 112.89 (C) then we have a confirmed Big M, aka a breakout, is happening). If the 5/15 close is still above 112.89 then continue going long.
Buy Set up 2: Wait for price to close BELOW the closing price of the valley (C) 112.89 and short at the open (when the price is lower than 112.89)! The target price is at 90. (90 is calculated by C-B= apex. 22, then B-22=90 this is a classic Big M measurement to get the target price, the second target price is the launch price 80.27)
If a pullback starts to happen...
....sell the position if a pullback starts to happen and get ready for Buy Set up 2
Buy Set up 3: if B to D (D=the possible pullback) is less than 10% before the pullback go long. (because it's a BUSTED BIG M!) or for a more conservative trade do Buy Set up 3
But Set up 4: if B to D is less than 10% wait for the pullback and buy (go long) when price closes above C 137.60
But set up 5. Ideally, the stock will drop to just above the launch price of 80.27. Close your position then or if the stock finds support along the way down.
Buy set up 6: if price hits launch price and reverse, wait for the price to go above the break out price 112.89 and then short when it once it drops BELOW the 112.89.
1. the trend start to the first peak (A) should be a big rise >60% within a short time <158 days, in this case, the rise is 119% and 32 days days
2. the two peaks should have a difference of at most 1%, in this case, the difference is 2.65% between the closing prices of A and C, however, considering the volatility of this stock I will still consider it a BIG M but play it safe.
3. the stock confirms the Big M when the price closes below the closing price of the valley (C) the last day (5/15) it closed at 112.95. Once it closes below 112.89 we can confirm a big M patter
Buy set up 1: Because the closing price is still not less than 112.89, go long on the open (5/18), and then sell the next day (5/19) IF the price closes below 112.89 (because if price closes below 112.89 (C) then we have a confirmed Big M, aka a breakout, is happening). If the 5/15 close is still above 112.89 then continue going long.
Buy Set up 2: Wait for price to close BELOW the closing price of the valley (C) 112.89 and short at the open (when the price is lower than 112.89)! The target price is at 90. (90 is calculated by C-B= apex. 22, then B-22=90 this is a classic Big M measurement to get the target price, the second target price is the launch price 80.27)
If a pullback starts to happen...
....sell the position if a pullback starts to happen and get ready for Buy Set up 2
Buy Set up 3: if B to D (D=the possible pullback) is less than 10% before the pullback go long. (because it's a BUSTED BIG M!) or for a more conservative trade do Buy Set up 3
But Set up 4: if B to D is less than 10% wait for the pullback and buy (go long) when price closes above C 137.60
But set up 5. Ideally, the stock will drop to just above the launch price of 80.27. Close your position then or if the stock finds support along the way down.
Buy set up 6: if price hits launch price and reverse, wait for the price to go above the break out price 112.89 and then short when it once it drops BELOW the 112.89.
Note
5/15 BUSTED BIG M, GOING LONGNote
5/15 WENT LONG SINCE PRICE DID NOT FALL BELOW THE VALLE (B) WHICH INDICATES A BUSTED MIG M. - BOUGHT A 130 CALL FOR $1.95
Note
5/20- red day for ROKU so I covered my call 5/19, and sold the calls 5/20Note
Getting close to valley valleys so I bought puts:$90 PUT expiring 6/5 and $95 Put expiring 6/5Trade closed: target reached
The breakout price hit at 112.89. Will leave my PUT positions and watch ROKU close at the end of the day. if it closes below Breakout price then Big M is in play! SHORT!
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