I discussed the standard opening range breakout in my last post. Now I want to talk about a variation of the Opening Range Breakout . It’s called the Opening Gap Reversal
The Play
The chart above shows the opening range reversal that occurred when First Solar (FSLR) failed to fill its gap today. The standard mantra of traders is that gaps fill more often than not. I don’t know how true that is, but I do know lots of people believe that it’s true.
What happens when the market proves a lot of people wrong? You get a range breakout. The idea of [...]
From the category archives:
Day Trade Examples
The great thing about science is that it full of fun facts and formulas. The fascinating thing about trading is that it is not.
I pointed out a support level on Apple (AAPL) at 168.67 in another post. In that post, I also mentioned that I was long Apple (AAPL) above 168.67, and short below that level. Then, this morning, I tweeted a short trade even though the price was above 168.67 on my day trading charts.
“You’re a liar!” you might have shouted; “You tricked me! I went long because you said to go long!” I also qualified that statement [...]
The OHLC Indicator is one of the simplest day trading indicators I know of. I don’t know if you’d even call it an indicator. It’s basically just doing something for me that I’m too lazy to do, and I love that because it saves me time and effort. I can use this time to do other tasks in the morning, like scanning for new stocks to add to my watch list. The OHLC indicator stands for Open, High, Low & Close. The indicator simply plots the prior day’s Open, High, Low & Close on your day trading charts.
Why is This [...]
I had quite a morning day trading today. The following is a transcript of my Tweets sent via Stocktwits as I traded RIMM. Since it all happens so fast, it is difficult to really give followers a picture of what I’m actually thinking, so below I’ve added what I was thinking at the time, and since I am not very smart, I have added what I assume a more prudent trader may have been thinking in the same situation.
The trading day started a little rough, and some guy prosed the following question;
9:44 am – “$SPY how do u day trade when [...]
In my post, “10 Ways to Build a Better Watch List,” I discussed how you might spend your pre-market morning finding great stocks to trade. Amazon (AMZN) is on my core watch list, but if it wasn’t, it definitely would have come up on my radar using the criteria in that post.
There was news on Amazon (AMZN), which brought in a lot of volume (specifically buyers), which caused it to gap up. It was a domino effect that made AMZN ripe with trading opportunities. As you can see in the stock chart above, I’ve shown 2 trades on this one [...]
As promised today on Twitter via StockTwits, here’s a recap of the FSLR day trade taken this morning.
This trade was a result of the stock market in general being seriously downtrodden today along with this particular stock’s push to close the gap feeling especially weak. I watched the tape to get a feel for how this one would react to yesterday’s low, and it just didn’t appear to have the ability to push through it (as a matter of fact, it reversed a few cents lower than the actual PDL).
Entry
As indicated on my day trading chart to the left here, [...]
Day trading can present some great opportunities. I posted yesterday about day trading a down market. Some days just have the potential to be very profitable for day traders. Here’s a brief overview of some specific day trades that could have been grabbed.
Research in Motion (RIMM)
RIMM opened well below yesterdays low. It made a very weak attempt to close the gap down from yesterday. When that failed, it was all down hill.
1. Arrow 1 shows where RIMM broke through its low of the day (LOD) here. It was a pretty easy short trade down to the whole number at 70.00
2. [...]
