Replies to post #6998 on Extreme Deviation Automatic Price Targeting - "X_D (BTC-USD)

[Myst]

Vic,

The CIEN situation is a good example of when the human mind should be given a bit more weight over X_DEV when making a purchase or selling decision.

I look at the X_DEV chart of CIEN and the 1st thing that comes to mind is why did the stock take that hewg gap down. After I've come to a reasonable explanation, I can then assess whether the extreme deviation X_DEV is showing me is warranted or not.

If you feel the stock was unjustly or overly punished for whatever reason it took the hit and that it still holds value for the longer term than X_DEV is showing you a decent buying op, and the stock should be bot for a partial position.

If not, or if the stock is a fair amount below it's 50 day ema (one of my criteria for safety), I'd avoid it and look elsewhere......preferably a stock that has a steady uptrend.

Stocks that have taken a recent hit have a lot of holders (losers) looking to get out when they've broken even, so it adds a bunch of resistance to the play.