This Is One Way To Trade The Opening Reversal
When a stock gaps down
at the open, people panic. Stocks cannot go straight down to zero.
Everyone knows it, but a gap makes people to react irrationally.
09:44:42 (From TradersWire)
| Action | Symbol | Order Type | Setup | Stop | Current Price |
| Buy | AMZN | stop 38.48 | Trap Door |
38.16 | 38.39 |
Without any specific negative news, Amazon.com
(AMZN) opened lower. Look at the chart below. The intraday low was established
in the first five minutes of the session. There was no positive divergence
signal from the RSI, but it was at the extremely oversold level. We decided to
place a buy stop just above the first bar’s high.
Have a good afternoon session!
If you have questions, feel free to mail them to me.
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