MATK was also another pre mkt gapper. I won't kid you, this sucker was a tough one. First of all it gaps down hard. So you're thinking it will bounce, right?
And yes, it does. For two bars. It then forms a doji. A doji fer Petessake!
What are dummy traders supposed to do with that?
By a mind boggling coincidence I was wondering the same thing just yesterday and asked the Chairman. Here's what he said:
That's pretty much what I thought so with that in mind, if you were going to go long, then your stop would have been at around $45.40. Rather wide.
If you were to go short your stop would go above the recent swing high. As shown on the graph. Its important to note that there was a clear downtrend from previous days trading.
In the end, this one was a very tricky sucker and if you got out with a profit, consider yourself either skilled or lucky (or both!). But I wanted to show it as an example of how to handle dojis.
And yes, it does. For two bars. It then forms a doji. A doji fer Petessake!
What are dummy traders supposed to do with that?
By a mind boggling coincidence I was wondering the same thing just yesterday and asked the Chairman. Here's what he said:
That's pretty much what I thought so with that in mind, if you were going to go long, then your stop would have been at around $45.40. Rather wide.
If you were to go short your stop would go above the recent swing high. As shown on the graph. Its important to note that there was a clear downtrend from previous days trading.
In the end, this one was a very tricky sucker and if you got out with a profit, consider yourself either skilled or lucky (or both!). But I wanted to show it as an example of how to handle dojis.
