Setting Stops starring F5 Networks

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:

FFIV_C

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:

FFIV_TL

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:

FFIV_Gaps

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:

FFIV_Supp

If you think this Pivot area would hold then your Stop would be set at $79.50

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