$EPIC dropped from 0.5992 to 0.4901. This lower wick only recovered about 30% of the downside.
On the four-hour chart, 0.4901 is the low of this sell-off. Meanwhile, volume expanded in sync to 13.35 million shares, suggesting that buyers at low levels aren’t very eager— the pattern of high-volume selling followed by a low-volume bounce is already forming. The next observation window is around 0.5250. Whether it can reclaim that level will determine if this bearish candle is just a shakeout or a trend reversal.
Place the stop-loss below 0.4780; once it breaks, don’t look back. First, see if it can hold above 0.5250—only then talk about 0.5580. A 5% loss for the potential of more than 10% upside is a trade-off; size your position accordingly.
Match these numbers to your own position sizing ratio—if you can fit it, then take action; if you can’t, just wait and observe.
#EPIC
On the four-hour chart, 0.4901 is the low of this sell-off. Meanwhile, volume expanded in sync to 13.35 million shares, suggesting that buyers at low levels aren’t very eager— the pattern of high-volume selling followed by a low-volume bounce is already forming. The next observation window is around 0.5250. Whether it can reclaim that level will determine if this bearish candle is just a shakeout or a trend reversal.
Place the stop-loss below 0.4780; once it breaks, don’t look back. First, see if it can hold above 0.5250—only then talk about 0.5580. A 5% loss for the potential of more than 10% upside is a trade-off; size your position accordingly.
Match these numbers to your own position sizing ratio—if you can fit it, then take action; if you can’t, just wait and observe.
#EPIC