here is a video trade review on our daytrade in mgm today. We bought this stock off a rubberband setup which is one of my favorite plays for very oversold stocks. Catching knives or picking bottoms is very tricky and nearly impossible but the rubberband setup you can narrow down the entry pretty accurately with a high probability. We entered this stock at 7.75 for a daytrade sold off a piece at 8.08, 8.45, and 8.34.
Some of the key components of the setup are
1. stochastics under 20 ( under 10 preffered)
2. Strong pierce of the lower bollinger band (if the candle is completely out of the bb its much higher probability)
3. Hammer Candle/Tail on the daily chart starts to form- ideally you see a big gap down and then a reversal