Pascal
12-04-2014, 03:57 AM
SINA is an interesting stock to study.
We can see below that it is in a downtrend. The question for is is to either short a bounce to resistance or a breakdown below support?
27235
The pyramid data is shown below. Very negative, but the EV pattern tells us that a bounce might be shaping out.
27236
Let's first study the breakdown. We can see that the trade data look acceptable.
27237
However, a "holding days" sensitivity analysis tells us that the R/R will be negative early in the trade, which could put us under great stress. The Table below indicates that an breakdown on volume will attract buyers at least early in the trade, probably because the stock will be extended to the downside.
27233
Shorting a bounce however look more interesting
27234
We can see below that the number of holding days will not affect the R/R ratio
27240
The Table below tells us that the stronger the bounce, the better the trade for a 3% stop level.
27241
We can see below that it is in a downtrend. The question for is is to either short a bounce to resistance or a breakdown below support?
27235
The pyramid data is shown below. Very negative, but the EV pattern tells us that a bounce might be shaping out.
27236
Let's first study the breakdown. We can see that the trade data look acceptable.
27237
However, a "holding days" sensitivity analysis tells us that the R/R will be negative early in the trade, which could put us under great stress. The Table below indicates that an breakdown on volume will attract buyers at least early in the trade, probably because the stock will be extended to the downside.
27233
Shorting a bounce however look more interesting
27234
We can see below that the number of holding days will not affect the R/R ratio
27240
The Table below tells us that the stronger the bounce, the better the trade for a 3% stop level.
27241