Hey everyone,
I’ve been working on a new trading strategy…new to me, but I’m sure not new to anyone else. Still, this has worked for the past 10 days that I’ve traded it, albeit on paper. But, i’ve been placing the orders in the real time as it happens on a piece of paper and trying to use zero emotion.
Basically, I look at a 2 day chart with 3 minute candles using Prophet charts. After at least the 2nd candle is formed I look to see what the high and low of the day is. Depending upon the breadth of the market and other factors…ie, if the stock did a gap up of 3% at market open, chances are my only play will be shorting the low of the day. So….
1. What’s the rest of the market doing overall
2. Where is the stock starting from overnight trading
3. What is the 30 day trend of the stock..is it in a bull run or a bear run…although this isn’t critical to my decision
4. Look at the high and the low of the day formed in the first 2-6 candles.
5. Place an order to buy above the high of the day or below the low of the day
6. Target price is dependent upon the stock, but typically looking for a .5% to 1.5% move, sometimes very quickly. The quickest I’ve made it is in about 30 seconds.
7. Sell quick and protect your profits
8. If you wish to try another breakout…often times, there is a 2nd breakout on the same stock in the morning, you can, but use much less leverage as you want to protect that initial profit.
9. Or better yet…walk away and wait for tomorrow!
