The picture below will show how I like to trade trending down stocks or gap downs. Same exact thing is for the long side.
Over here you can see ASNS on 3rd December 2018.
At open price has a pop and right away fails to hold it and goes below 72 89 1mins chart as well below 3mins 72 89 chart. That is called a shift when you basically have the demand that is not anymore leading the price action and the supply gets in control. Once that shift I will be looking for each pop to get short, having a set risk and covering into the wash, for then recycling shares on pops/spikes and again scaling out on weakness.
I like to see always the bids once they get to pop at 72 89 ema 1mins chart to be weaker comparing to sellers, which they have to form a rejection zone on tape.
More of these trades in Smallcaproom