Strategy Description: When a stock has an opening drive lower and then has a hard bounce off the lows set off the opening drive it present a seriously good risk-reward opportunity to buy into that support. Note that it is important the stock had a solid bounce off the lows because that indicates the bounce potential for a second time.
This trade somewhat comes from the intraday chart, although it obviously helps if the level is significant on the bigger picture and/or in the direction of the trend.
Simply buy at support from the morning as it moves back to the price. Aim to get a ridiculous risk-reward ratio because a play like this can present it!
Be reasonable with objectives, this (likely, that is unless part of entry into bigger picture play) isn't a trend play; it is just a high risk-reward scalp off the lows.
No comments:
Post a Comment