- Buy on capitulation/ panic, evidenced by extreme oversold conditions, price detachment to moving averages, volume capitulation (e.g. WEB, MRSGI)
2) Buy on short term down trend line break (preferably a flag or a pennant pattern ) (e..g. BLOOM. MCP)
3) Buy on double /triple support confluence. In this case, weekly ema 21 + 76.4% fibo level (e.g. LIHC). Drastic drops like these are highly toxic and bounces could be weak. Thus, trail your stops if a bounce materializes. Then wait for a clearer picture on the weekly chart. Remember that the more confluences there are in a support area, the stronger the bounce.
ALCO bounced off 50% level and 4 day EMA. Note that this was just a bounce, as price broke lower afterwards.
4) Buy on bounce from support plus bullish moving average crossover (e.g. FPH)
SELL at resistance plus bearish moving average crossover
5) Buy on box + RSI breakouts (e.g. MRC)
There are so many more chart setups .
Find your style and profit from them. Good luck!
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