This is what I want to see on PYPLThe first thing to say is, "I'm faaaar away from developing a setup right now on PYPL; when things are melting, trying to find a bottom is a really unprofitable business (or at least for me). So that's why I use relevant supports/resistances or trendlines as main levels before thinking about developing new setups.
In this case, the first trading opportunity I would be interested in is IF the price can break the first trendline. IF that happens, I want to see a correction, and a setup on a new high may be a good opportunity to get exposure to a new bull run.
I would like to add to this explanation why I always wait for breakout + correction before trading. This is because most of the time, we don't observe levels being broken like if nothing were there, most of the time when the price reaches or breaks a key level we will tend to observe some kind of retracement (this is valid both for bearish and bullish directions).
Waiting for this is a good way of avoiding fakeouts because you are not entering on the first breakout. This means that your drawdowns will tend to be more controlled because you are able to avoid A LOT of low-quality situations by doing this. The negative side is that sometimes the price breaks the level like if nothing were there and you miss the setup (however, I have realized that this is the exception)
Going back to the PayPal explanation, I think patience will be my strategy here; I want to see a clear bottom which means observing several more candlesticks before saying "oh, this is reversing" and then paying attention to the descending trendlines, as the first place where I'm thinking on developing setups. At the moment, PYPL stays on my watchlist as "WAIT WAIT WAIT."
Thanks for reading! Please feel free to share your view and charts in the comments.
