Strategy Description: Ignoring the fact that it actually moved back to the high at the end of the day... RLYP had a typical massive gap down, squeeze out, and then fade off pattern about it. I have adjusted the chart to ignore the end of day action to show why you would get that impression. The failure midday, and the magnitude of the move on the open of the gap down day suggests it (although the uptrend was more consistent than a squeezer probably).
So on day 2 when it gaps up it provides a gift opportunity to short. Especially given the proximity to the prior days high (for defined risk).
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