When an IPO float sinks we can wait for a bargain buy entry signal. But how to avoid the falling knife? Wait for a new low to bounce high enough confirming that the down trend has ended and buy with momentum. Count back line analysis draws a red line from the new low and green line from the high of the third lowest daily candle. When price closes above the green signal line, this is our buy signal. Price has moved above, oscillated below and now prints a second chance entry signal. Place stop below the low redline.
Trade closed: stop reached
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update - two strong down days closing near trheir lows after a new July high printed had me worried so moved stop to below CBL $60 level and stopped out. Looking to re-enter closer to all time low $47 zone or buy signal if occurs earlier.