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Where I would not buy the dip so the stock has already sold off down to volume weight average price Vwap. Sometimes I like doing a bounce off Vwap and this stock did bounce off Vwap but only a little bit. and then what does it do? It goes back down. It halts down as it breaks through Vwap.

So on resumption from this halt down am I looking to buy the dip, the answer is no, it's below Vwap, it's on the back side of the move. This just has a lot of weakness in it. I would no longer be interested unless it hold over Vwap and so what happens? Predictably it continues to sell off after the resumption. This is not a spot to buy the D.


By Stock Chat

where the coffee is hot and so is the chat

8 thoughts on “Do not buy this dip”
  1. Avataaar/Circle Created with python_avatars BlaziN says:

    Why not play it short?

  2. Avataaar/Circle Created with python_avatars Obed Ramirez 28 says:

    That play happened today 10/13

  3. Avataaar/Circle Created with python_avatars Vincent_Official says:

    Did you play tpst yesterday and today?? I bought in yesterday and sold it 300%gain but damn went like 4000% today. 🤦 woke up late but I bought in at $5, I knows it’s not done, let’s see tmr

  4. Avataaar/Circle Created with python_avatars Inner Circle Kid in the FUTURES ICT says:

    Your trading strategy is simply load up with huge monster shares on a 1min pullback after a breakout (hoping to not get liquidated) and to scalp a few cents

  5. Avataaar/Circle Created with python_avatars J Somethingorother says:

    Just getting into day trading and watching your videos.. would this be a good point to buy a sell to possibly make money as it goes down?

  6. Avataaar/Circle Created with python_avatars Neo Wu says:

    I just ran into this..(AMC) then i started to short it, and when it touched the bottom i long it, it turns out fine

  7. Avataaar/Circle Created with python_avatars R.K Rambo says:

    It looks like the 2nd pull back

  8. Avataaar/Circle Created with python_avatars Danny Milner says:

    I call that the buzzard. If you rely on MACD which I no longer do you can watch the MACD and the first drop forms the first wing to the body. If on the take off the right wing(facing doesn’t surpass the height of the left wing the MACD will begin to show a lowering wing and as you pointed out that’s never a good sign. It always produces large drops…always. I have no clue how many times and how much money I lost learning that for myself. The buzzard though is the sure sign of a dying trade.

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