@DonaldJoyDJ Yes, I actually made a youtube vid about this.
(1/x) Overall you NEVER want to short at the bottom of the clearout. That's what noobs do and they get owned when the stock soaks at support then squeezes. What you want to learn is how to ANTICIPATE them
@DonaldJoyDJ So what often happens before those 10:23am candles is it forms a tight clear range right below some key resistance level. In this case it's a combination of vwap and the top of the range it formed $4.20. Also the longer that tightness exists (14 minutes here) the better
@DonaldJoyDJ What's happening is a bunch of shorts are shorting into the weakness after the pullback at $4.40. They are all loaded up and risking just above vwap/$4.20. So the manipulator targets those stop losses, pushes the stock above the range, then starts dumping all his shares.
@DonaldJoyDJ You wait for the range to be CLEARLY broken (this went to $4.26 in a matter of seconds), then (and this takes skill and practice) you wait for the selling to happen and the stock to come back INTO the range (the faster this happens the better). You market order short here
@DonaldJoyDJ What I recommend you do is RECORD YOUR SCREEN - both the level 2 and the chart. Watch the range get formed and study the price action when the range/resistance breaks and pulls back. You'll get more used to the action as time goes on.
@DonaldJoyDJ Final note. You also need to know how to analyze when the "death candle" ISN'T working. 9:51am is a candle that followed the same pattern. But it INSTANTLY resoaked and had two BIG GREEN CANDLES after the clearout candle. I shorted this at $4.20 and got out right away at $4.15
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