Strategy Description: This play is really handy when typical support fails and not sure where to begin buying again. In this case I was long and stopped on new low; so adopting this strategy would have worked excellently.
Bigger picture bias for the stock should be quite strong (because you have to step in front of an annoyingly inconsistent downmove).
Use the ATR and next level of support to develop a range that you intend to stop yourself out of. E.G. Approximately 2x ATR and a support level around that zone. Scale into a long based on that zone.
When the stock finally bounces it should be quite an aggressive bounce when you consider that it is overextended and flushed to the downside. So you should be aggressively buying dips and adding to position once the low can be used as the new stop-loss.
This is the kind of trade that can easily retrace the entire down move because it is such a strong stock.
As always sell pops and recycle the position somewhat.
Should be adding to the position until it has regained vwap and from there scaling out.
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