Yes this is just common sense but you'd be surprised of uncommon it is and that many traders don't take advantage of that situation.
Quote Tweet
Trading quiz.
You are trading the S&P that's down and it then bounces to resistance at the 50 sma on a 10 day chart.
Do you.
1) Hold and ride it back down and hope it comes back?
2) Sell the bounce at resistance and either stay in cash or short it while it's still failing.