Some basic rules I have for shorting:
Must be below all key moving averages on the daily time frame - 10d/20d/50d/200dma
Broke down from a stage 3 top or in a stage 4 decline
Basing period / consolidation - the longer the better
Low relative strength rating (not RSI - people mistake the two)
Group/industry must be weak on a relative basis
Ideally earnings and margins are declining
The do-nots:
I do not short stocks because they are "extended"
Never short stocks in stage 1 bases or stage 2 uptrends, nor stage 3 tops until a breakdown is confirmed
Do not short biotech, small caps/low market capitalization - I want to short something that's generally too big to get acquired
Here's a view of VEEV on the daily time frame:
Must be below all key moving averages on the daily time frame - 10d/20d/50d/200dma
Broke down from a stage 3 top or in a stage 4 decline
Basing period / consolidation - the longer the better
Low relative strength rating (not RSI - people mistake the two)
Group/industry must be weak on a relative basis
Ideally earnings and margins are declining
The do-nots:
I do not short stocks because they are "extended"
Never short stocks in stage 1 bases or stage 2 uptrends, nor stage 3 tops until a breakdown is confirmed
Do not short biotech, small caps/low market capitalization - I want to short something that's generally too big to get acquired
Here's a view of VEEV on the daily time frame:
註釋
VEEV has not been a good short compared to other stocks that got crushed in recent weeks, but for educational purposes - VEEV never reclaimed significant levels to get out of the short position and the short still remains valid as it got rejected by the neckline, 10wema, and setting up for continued downside into next week as it builds out a small handle below the H&S
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。