Sunday, October 30, 2011

Gap Momentum with NR7 - FEIC

High volume gapping stocks offer good trading opps if you can sit on your hands until a good setup presents itself.

There were two trading opps for FEIC on Friday.

  1. Fib retracement long - red fib lines where you should target the 23.6% FE. I missed it. After coming within 10 cents of the FE, price consolidated in an increasingly narrow range, which we identify as coiling ahead of the next leg up.
  2. Within the coil, we spot the NR7 bar and place a long entry, using a few cents below the low of the NR7 as the stop.
Related post - NR7

6 comments:

t-money said...

Hi Jamie,

I was wondering if you you could tell me how you scan for your gappers? Thanks.

Jamie said...

Hi t-money,

I use stockcharts.com real time scanner and I also use Trade-Ideas to scan for pre-market movers.

I look for stocks gapping above/below previous day high/PDL

Unknown said...

Hi Jamie,

I have been following your posts for some time and really enjoy them.

I have been using Trade-ideas to find the trade leads using their NR-7 alerts, however I get inundated with the the number of alerts. Will you be willing to share your trade-ideas alert configuration?

Thanks in advance.

Helix

Jamie said...

Thanks Helix,

I know what you mean. The only manageable way that I have found to use the Trade-Ideas NR7 scan is by creating specific symbol lists. I generally run 2 NR7 scans, one for my own watch list and a second for momentum gaps. Momentum gaps work especially well during earnings season. You can use the Up big in pre-mrkt scan to build the gapper symbol list to use in the NR7 scan.

Jamie said...

I forgot to mention that I always put filters for minimum volume (500,000 to 1M) and min. price ($10) in all my TI scans to reduce the number of hits.

Unknown said...

Thank you, Jamie. I am now able to minimize the number of alerts and hit the right targets.

Helix