Strategy Description: This is one of the plays that I have a huge edge in and used to dominate this play when it occurred. Haven't seen it for a while so good to go through this one to keep familiar with the pattern.
Looking for an OTC stock down 50% or more all in a short space of time. Reading the tape start to identify held bids. Strategy is long above held bid, stop below.
Generally speaking you want to be careful about adding into strength. In this case it worked out only after a half an hour consolidation or so... So before that you want to be buying weakness and selling pops, locking in some profit and then adding.
In this case there was 1 fakeout, combined with massive volume which is unfortunate because that's probably where you would have got some decent size (unless the tape was saying something else but idk because I wasn't watching the tape). Remember that they don't have to bounce, so you could be buggered if you add, add.
However a pretty typical max upside target for the bounce is around 50% retracement of the crash, so provided focus on buying weakness and not getting stopped could capture a great move.
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