Price Action & Psychology - Pattern & MTFA

17 May 2020

Hello !

Key points

• Triple bottom pattern
  
• Price rejection
  
• Significant support zone
  
• Hourly chart : On that timeframe, we get a confirmation from the price rejection we see on the daily chart. The stock gapped down, triggered stop-losses and panic selling. Afterwards, we see a wide bullish candlestick (kind of "Tweezer Bottom") that has approximately the same volume.
  

I see two different ways to play that trade :

• "Aggressive" entry : buying around the previous close
  
• "Safer" entry : waiting for a breakout on the hourly chart
  

Either way, in my opinion the stop-loss should go above the Tweezer Bottom. On a 15-min chart, we see that the price action was pretty straightforward, kind of an instant correction from the morning panic.

Thanks for reading and if you have suggestions or want to discuss the idea, just leave a comment, I'll be happy to answer.

***Disclaimer : This is not an advice to buy the stock. Please, be aware that trading is a matter of probabilities and that it only takes ONE trader to deny your trade.***