When the stock underperforms.

1. When the stock underperforms.
2. When the company or the management underperforms.
3. Any negative news related to the company or management or
products or even the same related industry itself.
4. Analyst Downgrade, you only need one analyst to make that
statement.
Short listing of reversal stocks

The selection of stocks is important step and must fulfill certain criteria
before we even consider trading the stock. Strict rules of enforcement
must be of top priority in achieving a high probability trade.

1. There must be a significant decrease in the stock’s price during
the last trading day – this will form a bearish candlestick in the
chart.
2. The Market Capitalization of the stock should be above
50,000,000 – this indicates the liquidity of the stock.
3. The Last Volume traded should be above 1,000,000 – this
indicates the demand of the stock.
4. The Rating of the stock should be high – this indicates the high
Analysts expectation of the stock.
5. Last closing price must be above US$20.00 – sufficient amount
for it to drop.