[cmach123]

Does anyone have a method for depitcing whether a stocks price will bounce after a slight decline? For example, in the attached, you'll see a green arrow pointing, after this the price declines. When the price declined, by a few cents, how can one tell if this is just a test and the price will bounce back up? As you can see, this stock crashed hard...

If you need another pic, showing the background, I gladly add it...

[throughthemud]

There are many ways to determine the probability that it will bounce back. Use technical indicators and trendlines. I personally use elliott wave analysis and rsi. None are sure ways of telling what is going to happen but they greatly increase your odds of making the right call.

[Tams]

Originally Posted by cmach123 »

Does anyone have a method for depitcing whether a stocks price will bounce after a slight decline? For example, in the attached, you'll see a green arrow pointing, after this the price declines. When the price declined, by a few cents, how can one tell if this is just a test and the price will bounce back up? As you can see, this stock crashed hard...

If you need another pic, showing the background, I gladly add it...

the volume behavior can give you a hint.