Re: G&M article on Probe
in response to
by
posted on
Feb 20, 2014 10:16PM
Follow the MACD faster moving average versus the slower one. Either on the faster line outperforming the slower one or underperforming it, there are at times a gap between the two. When this occurs it indicates that the current price move on the stock may have gone too far and a resting period or contra move is in order. This is the main criteria for traders taking an opposite interest in the preceding up or down move.
Sometimes when the daily shorters or daily buyers take this contrary position at a perceived extreme they help the stock to go up or down hoping it will change market psyche for quick results. This is the reason that in the past Probe has on a few occasions been slapped pretty hard only to recover, routinely, afterwards.
The G&M article suggests that a person trade extremes, I do not.