Wanted to show you something that works well for me . Although i didn't trade this SNOFF its done some similar moves to a strategy i like to use on major drops
1) Look for V-Shape formation
2) Key reversal time at 10amEST , 2pmEST
3) buy after 1st green or 2nd green candle after massive drop
4) sell or scale out into key levels ( or into first or 2nd 5 min candle) – which has not happened yet
5) remember though this was given a sub $1 target on fraud allegations so even at $2.50 was a higher risk trade
6) also this was an OTC play & halted on the Toronto stock exchange ($TRE.to) while the big drop & pop still happened – so was definitely unusual situtation that you won't see each week.
The move on SNOFF ( Sino-Forest ) was major and very unusual but this V-shape strategy has worked for me many times just on a much lower percentage move then $SNOFF was.
Congrats if you made some money on it but the move was monsterous but the strategy like the one i show in the charts does work consistantly well for me. I definitely would not have traded it since doesn't meet my trading criteria but hope you learn something from it
Click on the chart to make it bigger – I have some notes on the individual charts that hopefully can help you when you see a move like this crazy one in the future