In order to have a proper trade process, a trader needs to determine ahead of time what their Stop is going to be on a trade they execute on. There are certainly a LOT of different approaches here but I thought I would provide a few different perspectives on what you can do if entering $FFIV right here.
First, a normal Daily chart:
As you can see in the chart above the 50 & 200 Simple Moving Averages loom just above as some Resistance so worth noting that. Now let’s take a look at a Rising Trend line below and how to use that for a potential Stop setting:
If this is your chosen perspective then you would go long stock here and set your Stop at $80. If you like to protect against mild overshoot moves, then try $79.50
Next is a busier chart showing some Gap Fill areas:
If this is how you see it then you would use $78 as your Stop – a Double Bottom pullback that holds. That is quite a down move for me but may very well be within your threshold.
Now I will change the lens again and show a Support line that has had some action several times this year:
If you think this Pivot area would hold then your Stop would be set at $79.50