It has been a rough year here for Chinese stocks but after this recent weeks acceleration lower it feels like we're entering at least some type of short-term capitulation washout.
Definitely a fierce counter-trend trade for more experienced traders that can manage risk and position size appropriately but I'd pay attention to it in this 42 to 46 zone for a reaction.
- Volume acceleration
- Extension outside multiple time frame Bollinger Bands
- Speed of sell off
Definitely a fierce counter-trend trade for more experienced traders that can manage risk and position size appropriately but I'd pay attention to it in this 42 to 46 zone for a reaction.
Evan Medeiros
Founder, Trade Risk
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Website: www.thetraderisk.com
Twitter: www.twitter.com/evanmedeiros
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Founder, Trade Risk
---
Website: www.thetraderisk.com
Twitter: www.twitter.com/evanmedeiros
Latest Analysis: thetraderisk.com/smw
Free Newsletter: www.thetraderisk.com/trading-newsletter