On days of weakness, algorithmic traders will usually drag the price down 5-6% on the open and see what happens.
They will keep selling on low volume until there is sufficient buying pressure. At which time they will buy it back up to the real fair value price.
You can make money by recognising this, but you can also lose money because sometimes it ends up been a real dump.
Best way to tell is by the volume of shares traded.
Large volume= dump, small volume=algo traders drag down to test buying demand.
Hope this helps.
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