I just took a small trade in a company named Roku. This is not my typical swing trade lasting weeks or even months. This will probably be a much shorter, a week or two.
I base my trade simply on the chart pattern. As you can see below Roku just dropped 20% (down 31% from ATH). You can see it falls perfectly on top of our support line confirming the third touch. More than Roku also touched the 200MA average, a known place to buy stocks after a dip. The wick created at the candlestick signals bullish sentiment. The goal for the week would be to get a green candle before close on Friday. The target for the trade would be at 142. Depending on the strength of the stock I would also consider 151 and higher. My stop loss is just under the support line, meaning I´m risking a total of 1.5% for a potential 10% increase.