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Under
our Stock Leads section on OTC BB
Pulse, all stocks there are dedicated to the bounce plays
in some way or another. The word bounce is pretty much self
explanatory. However there are different types of bounce plays,
and we will try to explain the bounce plays terminology we
use here at OTC BB Pulse.
We do have some advance methods to time and spot these bounce
plays. However, we will only do a simple overview and introduction
here.
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1. Quick V Bounce
This type of bounce usually happens when a stock is sitting
at the overbought region. As indicated in the letter 'V', the
stock will fall off quick then reaches a region that the demand
becomes greater than the supply, or short-term oversold. The
stock will then make a quick bounce, usually it cannot reach
the sold off price level after the bounce. Most likely, we look
for a 10% return in this type of play. The basic enter and exit
strategy should mainly rely on the L2, and should never be based
on the the expected percentage return. |
2. 2nd
Leg
After the Quick V bounce, a stock usually consolidates at
an area. Here is when we should expect a 2nd leg bounce, as
the development of the company may unfold more information
to trigger the bounce. Key areas for technical bounces: EMA
lines and Bollinger Bands. If there is no more development,
it will most likely to drop more from the consolidation area.
3. Bottomed
Stocks that we think they are oversold and due for a bounce.
Quite simple.
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