For example, if a stock's price is below the VWAP, it may lure many traders into shorting it, he said.
Since Sykes trades penny stocks with less trading volume, he uses indicators that help him determine whether his theses will play out.
However, its importance is inferior to the above criteria because the catalyst could move a stock's price in either direction.
On the morning of December 1, 2022, the stock's price plunged, creating a pattern he calls a morning panic.
This trade fit Sykes' criteria because it had attention on it as a catalyst and created a pattern he trades.
Persons:
Timothy Sykes, Sykes, Norman Zadeh, It's, they're, CLOW
Organizations:
Bollinger, United States, Nasdaq
Locations:
shorting