One of the simpler approaches to trade entry and/or exit is through the use of one indicator – RSI (Relative Strength Index). I post examples of this periodically and bring you NFLX (Netflix Inc) on the 5 minute chart today:
I have had numerous exchanges with other traders on how to filter out the noise caused by after hour and pre-market movements – but I think you can see the key areas:
1) for Short entry above the 70 level (top Blue horz line)
2) for Long entry below the 30 level (bottom Blue horz line – let it stabilize first, but won’t usually take very long)
With the example above, if you are long today, price is approaching the 70 level here so watch for some sellers to emerge. Trade ’em well.