Gap acted as support, always keep that in mind for good dips, especially if it's aligned with other areas such as a 50 or 61.8 Fibonacci, high-volume nodes/demand area.
After a gap up, there always are profit takers to take the stock lower before it makes a red to green move.
Could've waited for the bounce on the support. Set stop-loss below that support (which is also the low of the day).
Bullish wedge + near support = made the stock break the trend and breakout to the upside from the pattern.
If a stock is in a downtrend, before buying a dip let it make a higher low or show some kind of strength (holding well the support with the buyers on L2 and T&S).
Downtrend breaks are very good opportunities for a long trade, especially if the stock makes a higher low to indicate bullishness (presence of buyers). Confirm the presence with the Level 2 flow: Are there buyers lining up after the break of the downtrend?
Most importantly, take profits, scale out.
Execution detail:
Date/time | Symbol | Side | Price | Position |
---|---|---|---|---|
2021-02-04 09:28:09 | ATOS | buy | $4.450 | long |
2021-02-04 09:29:58 | ATOS | sell | $4.420 | long |
2021-02-04 09:30:58 | ATOS | buy | $4.220 | long |
2021-02-04 09:35:40 | ATOS | buy | $4.540 | long |
2021-02-04 09:53:30 | ATOS | sell | $4.580 | long |
2021-02-04 10:00:52 | ATOS | sell | $4.430 | long |
2021-02-04 10:16:21 | ATOS | buy | $4.300 | long |
2021-02-04 10:24:27 | ATOS | sell | $4.180 | 0 |
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