Monday, December 28, 2009


Here are illustrations of a couple of typical opportunities that i would like to capitalize on:

Opening Gaps

  1. Min Price $2 Max Price $20
  2. Avg Daily Volume >300k
  3. Pre Open Volume >30K
  4. Pre Market Price Must Clear previous session High
  1. Use 10 minute Bars
  2. Enter when high of first 15 minutes or Opening Range is broken to the upside or break of first 10 minute Bar
  3. Stop is low of the 2nd bar
  4. RSI 8 must be through the roof
  5. EMA 8 must not be violated - could also try 10 MA 
  1. RSI 8 divergence
  2. RSI 8 is crossing the 70 oversold line

Example #1 - VICL

Example #2 - STEC

Very good article on Stops and adapting to new trading environment

2010 Trading Rules

2010 Trading guiding principles

 Stock Scans (using finviz:
  1. Scan for Ascending Triangles, New Highs and Multiple Tops
  2. Closing price above 20, 50 & 100 MA
  3. Average Volume >300k
  4. Current Volume 1.5 or better
 Entry Rules
  1. Look for clear breach of prior resistance
  2. Buy on the first pullback. The rationale is to get rid of Trading BOTS that aim to sell new highs
  3. Breakouts must be met with volume
  4. New highs must hae higher relative strenght that the previous high by comparing RSI 7 readings
  5. If new high doesnt show Momentum - prepare for a Short setup
 Exit Rules

  1. Break of current trend
  2. Break of momentum