Anytime a stock is "overextended", meaning that the volume can not be sustained but its steadily going up, there is great opportunity for a short (FRD) and a dip buy near previous support levels. As always it is a recipe for entry either way. This one was a dip buy for me. Typically you want to see the stock panic (fall down within 5-10 minutes, sometimes faster) 20%-30%. When that happens the stock typically reverses because of shorts covering and momentum traders seeing the reversal. This trade was a little different. Recently stocks have not panicked but have faded 20-30% in the morning near support levels. Referencing a JACKAROO trade on $RLFTF from last week I archived that price action and saw it happening again on this stock. HISTORY REPEATS ITSELF on these stocks. Just have to be ready. Hopefully my explanation helps in the video!
Categories
Price Action: Buying Dips/Panics
Tickers
GPVRF
Thank you for another solid live trading video lesson
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Thank you Ellis
Thank you Ellis
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