Here's a look at what attracted me to AEOS. We've got a clean gap down with minimal retracement to close the gap. In a very weak trading day, the stock is showing support around the 22.55 level. Based on the lack of market crashing earnings estimates coming out tomorrow, the likelihood of a stronger market for at least an hour or so tomorrow is pretty good. So the way I analyze this chart is I have a likely downside of about .20 from my entry point (22.76) and an upside of as much as half the gap (just experience talking, not TA), which in this case is +1 point.
This is a relatively good percentage trade for me in a bearish market market environment, provided, I stick to certain criteria to select the stocks. Usually this is because there are happy shorts out there who still haven't covered, and more importantly, in all likelihood the market makers were forced to buy stock that they want to unload the next day for a profit. I will just sneak my sell orders in along with theirs.