CTRP was downgraded couple of days back with the price plunging from $37 to $31.
The last 2 day’s saw a dead cat bounced for the stock.
This provided a very good entry to short the stock when it starts to turn around.
Ctrip.com International, Ltd (CTRP) : Dead Cat Bounce. Short it.
Hi, why you use RSI not Stochastic?
I do not necessary stick to RSI.
For me, the more important indicators are candles and its relation to the moving average (in my case, Tenkan sen).
RSI or Stochastic plays a less important role.
You may sometimes find that my chart also have Force Index, and some may have Stochastic as well.
But, the key indicators that I look at is always the candlesticks and Ichimoku.