It is a combination of indicators, ma's, support/resistance with market structure lines, volume and looking for potential patterns.
One example to put me on high alert would be the interplay of the 4,8 and 13ema's and price with the lower bb. I will not buy unless price moves above the 4ema and looks likely to up cross the 8ema.
Exception: when price plummeted to 1.30's and BBro bought $millions worth at 1.50 it was pretty clear there would be at least some recovery.
Oversimiplified, so this is not all. My chart ends up with 6 ma's, fib pivots, VbP and bb's...plus 5 indicators with 2 more for money. Anyone without a stockcharts account would not be able to see all this so I only post simplified versions.
The above is for a daily chart and I check several time frames when I am on the hunt.
One thing I noticed on IDRA is that price is currently sitting exactly on the daily 500sma which is a very LT support line. If price closes below and gets a follow up confirmation then the odds for more down from here are quite high and I would then check the other stuff with those ema's also saying don't buy yet.
Hope that is of some help.
Green Trades to you.
IDRA has been a great trading stock for 5 years now. Why trade it. Because it usually takes 8-12 years for drugs to go from pre-clinical to FDA approval. (Assuming they are successful.)
