What is a Falling Knife? A falling knife is a colloquial term for a rapid drop in the price or value of a security. The term is commonly used in phrases like, "don't try to catch a falling knife," which can be translated to mean, "wait for the price to bottom out before buying it." A falling knife can quickly rebound - in what's known as a whipsaw—or the security may lose all of its value, as in the case of bankruptcy.
What a Falling Knife Tells You The term falling knife suggests that buying into a market with a lot of downward momentum can be extremely dangerous—just like trying to catch an actual falling knife. In practice, however, there are many different profit points with a falling knife. If timed perfectly, a trader that buys at the bottom of a downtrend can realize a significant profit as the price recovers. Likewise, piling into a short position as the price falls and getting out before a rebound can be profitable. Moreover, even buy and hold investors can use a falling knife as a buying opportunity provided they have a fundamental case for owning the stock.
Highest trading volume in a week since 2014..!
WSB : Number 3 on Their mentioned list!
Possible quick reversal to 190-200???
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#BABA I believe 157-158 could be a good entry zone with a target price of 195-200 and a Stop loss of 152.50. Reward to risk:+11
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20% profits Call options in the past hour..!
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36% gain on 160 call options in 3 hours!
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It seems we catch the knife from its handle..!
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+160% in less than 24 hours gain on 160 call options
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closed my positions with +180% profits in 22 hours..!
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