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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Sun Tzu who wrote (10226)	9/30/2025 5:31:16 PM
From: Sun Tzu	Respond to of 10539

For those who want to live dangerously and catch falling knives, here's how to do it. Below I present CASI, which also had similar crash to AMBI, at least if you were to use the regular RSI and run market screens based on extreme oversold. The thing is that CASI barely went below the green guard rail. So in this context it is not in the class as AMBI which spent two days well below its green guard rails. Also, if you look carefully, you will note that there's an orange dotted line below the green rail and a dotted green line above the red rail. These are are estimates of fuzziness around the rails. If you like the stock, you can set your stop where the orange dotted line is or at most (not recommended) extend the zone by the same distance. Either way, your entry is when the stock goes above the green rail. Also, pay attention to my sentiment RSI, which is short term focused (green background). It rose for for 3 days (4, if you want to split hairs) even as the stock fell, before CASI bounced. So this was an important cue as to whether or not you should aim to catch this falling knife (with a tight stop). AMBI never had these features.