Some ideas on the most significant drop in PYPL history.

PYPL is on my trading watchlist because, as a growth stock, it has been in a corrective situation for a reasonable amount of time, 284 days to be exact, from February 16, 2021. When we have this type of consolidation, it is easy to look at the past and ask a simple question. How many times did a similar situation like the current one has happened?


As you can see, there are 3 situations, including this one, that we can compare and understand to look for a good spot to develop setups with a goods ods as evolving as expected + High risk to reward ratio.

Let's check all of them.
AUG2015 - APR2017


JUL2019 - MAY2020


FEB2021 - YTD



I don't have a final idea of what I want to trade here. However, I'm certain I will not develop any bullish setup below the current descending trendline. Once the price gets close to it, I will develop the specific filter I'm waiting for. Based on past behavior, if I see a breakout of the descending trendline + a clear filter (not defined yet), I think it is a good opportunity to look for setups with a target on the previous high and beyond. That would mean R/R ratios above 5 or 6 (if we can catch that), and at the same time, we can absorb multiple stop loss, and even if we get it right on the 4th attempt; we still are able to make profits.


Feel free to add any ideas or thoughts about this in the comments! Thanks for reading.