Hey hey, what's up my friend so in today's video i just want to talk about facebook right now. Yes, declined 20 in a day recently on this candle here. Another question is you know, should you be buying facebook, or should you be selling so kind of like analyze, this right from different side of the coin, whether you're an investor or whether you're a trader so, first and foremost right? Let's look at this facebook chart. Also now it's called meta right from from inception right since 2013 to right now.

So if you look at facebook right now since 2013, when ipo, you can agree right that this stock is still in a long term uptrend. How do i know that? Because if you look from left to right, you can see that this stock is actually trending up higher over time. So, no doubt we have this 20 decline recently. But if you look at the macro perspective from the long term basis, this stock is still in a long-term uptrend.

So once you can agree with this right, then let me just point out a few other things you can see at this stock over the last few years or since its history of trading. It is common for it to drop. You know. 30 40, like from this highs to this lows over here, that is a decline of about 44.

Okay, if you just calculate from this highs to these lows, there's a drop of about 44 from this high to this low. This is a drop of about 38, okay and right now from this high to this low. How many percent is that? Well, that's about 40 percent okay. So let's answer the first question right: uh.

Is this a good time to buy? Well, if you're a investor and you believe in the prospects right, the fundamentals of facebook - and you think that at 380 you know facebook is - is a buy and guess what right now price is trading around 240. It's even a greater buy right now, because you are pretty much you know, uh getting to buy it at a 40 discount relative to the highest. Is it was at over here, just uh. You know a few months ago.

Okay, so from uh investing standpoint, you have to ask yourself: do you believe in the fundamentals of facebook? Because if you do believe in it right then hey? This is a a pretty good time to buy right because he has just declined 40 from the highs, especially if you think that at 380 facebook was a buy right now, it's a greater buy okay. So that's for the first site or the first camp of people who are more towards investing sites. Second part: is the traders right so trading right? If you look at a trading from a daily time frame right or anything, lower? Okay, i won't be interested to buy facebook because the trend is just towards the downside and i'm not interested to short stocks, because you know shorting in the stock market. To me, it's kind of like a it's a difficult game to play compared to staying on the long side.

So as much as possible, i like to remain long in stocks. If uh stock is in a downtrend, i would just remain in cash and look for something else. But if you look at facebook on a weekly time frame right, you can see that this is actually still in a long-term uptrend and where might buying opportunities, be so as a trader. If you're a long-term trader, who trades off the weekly time frame, uh, i wouldn't recommend buying just yet, because the next question to ask yourself is: where do you set your stop-loss? You know if you bought to buy right now.

Do you set your stop-loss at 220 because that's a nice number or do you set it at 200 because that's an even nicer number or you set it at 180 because you like that number one. So you can see that there's all these questions to us right and the thing about all these three levels is that you know is that the price could just continue grinding now lower or you know, hit down lower and just hit your stop loss. There's no like price structure that you can reference against to set your stop-loss there's like no higher low there's, no, like swing low, that you can reference right because right now the prices you know just you know, hit down lower and the momentum could just you know, Follow it through down lower as well so from a trading standpoint. What i would like to see instead is buyers stepping in coming in to buy this stock right and about to take it higher.

So how do you get this inside this clue of this market? So one thing that you can do is, let me just share with you, is that you can look for a bullish hammer like this right to tell you that buyers are stepping in because, when you see a hammer like this, it tells you that at one point In time right, the sellers are pushing the price near this lows over here, but the buyers eventually step up higher and close near the highest of the week. So this tells you that buyers are stepping in you. If you see a bullish hammer, that could be a signal for you to get along on this, so you can. You can just simply enter on the next week, open or you're a cheap skate like me.

Usually, you can also use a buy limit in order to place your trade as for stop loss. You can now reference this low right, this most recent load to set your stop-loss. You can actually set your stop-loss or distance below it, possibly somewhere about here. Okay, so in this case, if let's say you got long and facebook continues down lower, hitting your stop-loss chances are this downward move right is likely to continue lower and you want to get out of the trade right, at least from a trading standpoint.

So this is uh one one way you could use to time. Your entry into this long-term uptrend and also speaking of this long-term uptrend, i also want to point out, is that facebook is right now also at an interesting technical level. If you overlay with the 200 period moving average, you can see that facebook has bounced off the level once higher. Second time rarely higher and now we're back here for a third time, will it rarely higher again anyone's guess, okay and that's not all right.

It has also come towards this area of support right. This area of support you can see, which is around the 240 dollar price point, so uh multiple confluences coming together, but the key thing is that you know i don't want to just buy yet i want to look for a bullish entry trigger to go along and In this case could be something as simple as a hammer on the weekly time frame. So now is this: the only way that you can look to enter a trade well, not quite because you can also use the daily time frame to help you time your entry. So earlier i said that daily timeframe there wasn't anything, but if i were to enter on a daily timeframe, this is the setup right that i'll be looking for so on the daily timeframe.

Okay, you just a quick recap right. This is actually the area of support. I drawn earlier right what you can look for is for the price to make a higher high and a higher low, to tell you that the buyers are stepping in so as of right. Now, you look at this chart on the daily time frame for facebook.

It is making a series of lower low and low high lower low, lower low low low. It is the most recent low sorry i mean lower high, lower high, lower high lower high low high and then here lower low, lower low, lower low and lower low. So it is at this point to me the selling pressure they are in control and i have no wish to fight against this strong selling pressure. So how do i get an idea or a signal that hey the buyers are stepping in and they're about to push the price up higher so again using technical charts? You can do that and what you can look for is a higher high and higher low.

I like to call it high and higher low, so it looks something like this price hits up. Higher okay makes a pullback and it breaks out higher. So at this point you now have a higher high because the price has broken above this swing high. You have a higher high and you have this higher low.

So when it happens right, this could be a signal for you to get on board this trade. So you can look for the price to break and close above above this swing high before you take a long trade on facebook, and where do you set your stop loss couple of options? You can reference this low, this minus swing load to set your stop loss or this extreme swing low. To set your stop loss, it's kind of your choice right depending on you know how uh uh, how much of uh how wide of a stop loss you're comfortable with and how much time you can devote to watching the markets. So again, if you look back historically, i think back in 2018, something similar happened.

So this is the first uh the one over here you can see over here what i'm talking about the higher high and higher low. So at this point right, facebook was declining down about 44, so you have series of lower lows and lower highs. They can see low high, lower high lower high lower high, but at this point right, this is something where something interesting happen. You can see that the shift right in selling pressure so just to point out at this point price stage, a new high taking above this swing high made a pullback okay and they break out higher and close back above this high.

So at this point you now have a higher. This is the most recent high higher high and higher low okay. Of course, you may or may not enter this script, because when the price did break and close above this highs, it gap up higher this much higher. So i i think for most traders they're not comfortable right one having to pay a premium when the price kept up this high.

So again, this is the reality of trading, and this is kind of like the principle that i was illustrating right when the price makes a series of higher high and higher low to time your entry. So if you look again the most recent downswing, you can see again the same thing happening at this point. You have a series of uh again price stage, a rally made a pullback and it break and close above this heist at this point. So at this point now you have to have a higher high and higher low.

So again, if this you can use this as an entry trigger right to time your entry to get on board this facebook, trade and again the reason why uh i'm you can look for this specific entry triggers because facebook, at least on the weekly timeframe, we can See that it's at an area of value - and this is a 200 week moving average plus having the confluence of this area of support. So, at least this is, from a technical perspective, a long-term technical trading perspective and by the way, if you are into the stock markets - and you want to use the stock markets, will generate an extra 10 20 or even 40 a year right without starting. You know financial reports and whatnot. You can actually join me from this upcoming webinar over here right, uh i'll share with you how you can actually you know, uh beat the stock markets right uh without analyzing financial reports, or you know looking at news and whatnot.

I even give you a simple stock trading system that you can use to profit from the stock market. It's generated about 2421 over the last 21 years, so the next webinar is coming up in a few days time. You can just sign up it's free and even if you can't make it for this webinar, you can still sign up so i'll. Let you know when the next upcoming webinar will be so i'll put a link somewhere below this video.

You can sign up for it with that's it. I wish you good luck. Good trading. I will talk to you soon.