Dip Buying After Huge Sell Off's (WBAI)

     Another trade that I made was by spotting a reversal signal in WBAI, a stock that had recently been getting sold off. This stock had some negative news about a lawsuit. This caused the stock to be sold off heavy for the next month. Although there was negative news it seemed to me that the stock was extremely low. So i patiently waited to find a bottoming point, because now it seemed the large selling volume had slowed down. Eventually I noticed a very large bullish engulfing candle that showed me that the bottom was here and the stock is now going to push forward in a strong reversal.

 As you can see here WBAI was getting sold off from around $18 down all the way to a low of 7.50 a drop of nearly 60%. Seeing this I believed that regardless of the news a bounce was very likely. Just as stocks going up very fast almost always have some sort of pull back. In the circle it shows a very exaggerated bullish engulfing candle, as you can see after this the stock made a nice bounce. Once the stock closed above the 8 exponential moving average it is confirmed that there is a likely move to the next moving average, which was the yellow 20 simple moving average. I was buying above the 8 exponential average at around 12.60-12.9 and then was taking profits near the 20 average at 14.50 and the stock touched the average at 14.77 and then began to pull off.