In a few other threads..people have been talking about when and how to take a bounce play...citing RHAT today as an example. I thought it was a TERRIBLE way to do the bounce play...so i wanted to start a thread to help people recignize so HIGH ODDS LOW RISK bounce plays...not just "gut feeling" plays. here is how i do it...anyone can feel free to add to this. 1. If you want to buy something after a huge sell off...makesure tere is a compelling reason to buy 2. I perosnally have a list off 100 stocks that i follow with super high Relative strength and earnings growth....this si my long list...thanks to William oneil. I narrow it down from there based on liwuidity. min 200k shares 3The overall trend should be UP on the stock. my initial scan on this is the 1 year chart...i just FLY thorugh 100 graphs looking for a HARD pullback. 3. When i find a hard pullback i look for lines of support or nearby 4. form there I look at the 50, 200 MA for support 5. after that i look for "exhastion" on the volume...super high volume selling. 6.From there i make a list of about 10 candidates or so that MAY qualify. 7. Thos 10 i wach like a haw for a revaersal...DONT BUY until the bugger start going back up...DO NOT JUMP THE GUN ON THIS...you will lose more often than win. Watch them like a hawk. 8. when you enter set a stop at the same days low price. dont enter more than 5% from the low of the day. 9. Ideally...the indices should be going the same direction. 10. make sure you have 3:1 RR never risk more than 1% of your overall capital if ANY of thes things dont exist..i dont take the trade. RHAT, did not make this screen today...but a good example was PRXL. Next week i am looking at HITT for the same entry. good luck, hope this helps.