Making money on the price downside is difficult
because most buy and sell combinations are unprofitable. But as
prices decline, savvy traders can spot buying opportunities. For
instance, the price downside of Hovnanian (HOV),
one of many struggling homebuilders, has presented traders with
four entry points that yielded significant gains.
The chart of daily closes from August 1, 2007 to January 23, 2008
shows the four brief, but profitable upsides. The percent gains
are noted on the chart. The fourth upside yielded a 68 percent gain
in just nine trading days.

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Ugly Downsides - Avoid
the Price Downside