In my study (such as it is), oversold conditions on the daily chart are not sustainably cleared by bounces that go overbought on the intraday chart. In this situation you need a period of consolidation, maybe with a pullback, to reverse a bearish downtrend.
To put it in different words, there was not a strong enough capitulation move last week, and the subsequent hammer candle on Friday was not long and strong enough.
Whatever the case is, have to follow your stop loss and position sizing discipline …
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November 19th, 2012 at 7:07 pm
In my study (such as it is), oversold conditions on the daily chart are not sustainably cleared by bounces that go overbought on the intraday chart. In this situation you need a period of consolidation, maybe with a pullback, to reverse a bearish downtrend.
To put it in different words, there was not a strong enough capitulation move last week, and the subsequent hammer candle on Friday was not long and strong enough.
Whatever the case is, have to follow your stop loss and position sizing discipline …
November 20th, 2012 at 8:26 am
$AAPL gap fill @ ~$582 ?