 Welcome back for those folks tonight. We are focusing on establishing a plan This is a follow-up on basically what we just said in the previous video and We when we played spy on Friday and again played Netflix on Friday and this one is Going to show you again. We played Friday bottom we were waiting for that bottom and I'll show you a few things I keep saying keep lines in your church charts This is basically the lines that I have in my chart my Netflix chart I Have a lot of them When you look at the weekly chart, you can't really see anything unless you take these lines away What I'll do I'll put the five-minute chart on so you guys can see a little cleaner What was what is happening? So basically if you look at Thursday Thursday it came down to a To a line of of interest See this price level right where it bounced on the line It's a line. You saw that I was already in my my chart from way back Yeah, and if it was if it hadn't been on you guys could have put it on that low of Thursday and see what happens with this line eventually so Basically what I was looking at is a bounce on that line So I was ready for the bounce to see how you know the target the Netflix is moving down very close Here you have the bounce on the line here. You have a higher low So I was under the impression that this could be the higher low very similar level in that So this is where I entered something that was already in the money. We alerted 367 fives calls For a bounce on the line Why so far down because we're you know, it's just very close to 370 we could have gone 370 I was under the impression that 365 367 fives we were paying 380 You have to do the math right if it closes at 370 and you took the 367 fives You will have a remaining value of 250 Very close to expiration right your end of money So if you don't want that but you have a remaining value of 250 when you get to a cloud to expiration I was under the impression that we could at least Get to this level which is very close to 372 a little higher than that almost 373 so 373 When you are From 367 to 5 you're 250 plus 3 and makes it $5 50 Which is more than respectable for a play On Friday Friday entry day for a same-day expiration Where's the risk if we drop below this line There's the risk, right? Let's get out of here. So you guys can understand a little more of what's happening And risk management on this one Because we did go under support, you know, I have showed you a few times about but where's your next line? Are we falling down? for the you know Crying like little girls or are we going to find some support? Hello Lauren. This is what we found basically Trust me on this one. This is how spy Behaved basically we found what we called what we thought to be a bottom and At 1045 this level. This is where spy intraday Well was at high of the day. So you remember how spy looked went like this high or low Went above the pre-market resistance and then it started pulled back it pulled back all the way until I believe this 1125 around this area, right? So this is what spy did so Right here You're at the high remember I told you it looked bullish. So for something that looked bullish Netflix didn't look bullish at this point if it had crossed above, right? If it had done this Well, we were on our way for a bullish move, but no, we would reject it and came back down. So When spy went under all of these support lines It was looking very bearish. However, although we crossed under our Planned area we have to look at where's the second support, right? Our first support was this. Do we have support any lower lower than this? Are we going down in the abyss or are we finding support somewhere? Right, let's look at this together Then zoom out a little bit and see if there's a level somewhere. Oh, yes We do have something I'm just going to do a drawing so you guys can all see it Right on the left side of your screen. You see this wick Where actually we found buyers on the wick and then it bounced basically this line Where it says price level 43 The major part of the Market bounced on this line, but we found buyers right here. So basically What I'm telling you is let's put a line right at this level you can identify how low it is so it's low as 366.76 so if we move to 366.76 we're very close to that You know close enough here This is your line that you have your second line of support, right? So let's do this together Showing you how you can decide whether or not you stay in or not This is quite interesting. It's a good example of We entered here a little higher believing we were holding on that support line the plan line that we had Market decided at 1045 to spike, but it rejected so as it came down Market was moving down and moving down all the way to 1125 which was right here So while the market is doing a four dollar draw doesn't look too bearish to me on on Netflix because from this Lost of support to here. We only have a dollar and a half, right? It's about 368 and it's dropping to 366 70 so it's you know less than a dollar and a half and we're you know Just gonna clean it up for you guys to see it So basically the yellow line you see is the wick that was bought just a few days before Where we found a lot of buyers and that becomes your second line of support It wasn't that far away if it had been six or seven dollars down There's very little numbers to believe or you know, it's it's it becomes hazy as of where is it going to bounce as opposed to this we saw that a lost support and it quickly found it It was kind of hovering like I said, this was the low of day on spy Spotted this you know low day Attempted to go higher and then it had a higher low and then went like that right remember that one It did the same here. We found Just a tiny test under our yellow line here of support Yet it was still holding while spy was moving to the upside And let's move out the zoom out a little bit here so you guys can all see what happened obviously the old Resistance that we played Here right this was the old support that we played Becomes the new resistance. It's the same line. So this was support now becomes resistance We've played that many many many times however Spy was just kept on moving and as soon as we crossed this line. Look what happened big Big green line moving to the upside and off we were where to well We can decide to be as high as this and in my I told you before I was aiming at Somewhere in this at this level this is the level we were looking at and Basically as soon as we started crossing this it is sell time see there is a high there pre-market high or pre-market does Resistance so soon as we start getting in that vicinity. We are very close to the Resistance that we want to sell we sold a little early However, you know, we were in a little early as well. So the idea is to stay green So just to recap a little bit. We decided at this level It was a little higher than my my my target but looking at the price level from This area we were very very close to the same level. So that became the support we rejected the the move to the upside as Spy was moving to the downside now once we crossed that level of support we have to look Behind where's the next support level and we saw that wick and that way Became extremely strong Here we decided to go three sixty seven fives Looking for a move to the upside To 273 ish maybe even a little more We entered at 380. I understand it's almost four hundred dollars for a contract. However The idea is to be on a safer play and we sold For six sixty once we reach The level that we just talked about so, you know, basically this is a 74 per cent move for something that We had planned to have some value if we if we were to expire in this area at 370. So In this example, you see how we plan the play on the bounce How it rejected the support you could have exited here. However, if you look Back you can decide. Hmm. I'm gonna push my luck to the next support level The next support level had been in the let's say three sixty. I would have said, you know abort the whole thing and forget about it and And this one it was very close and while the whole market was doing this well We only pulled back a few candles to you know about a dollar and a half So it was really worth the wait and eventually we moved to the outside so balancing our chances on looking at where support is well in The long run make it a lot easier for you for for you to take all the guesswork out of the play So I hope you guys hope you guys are learning something and keep us posted with your comments It's always great to hear from you. Have a good one folks