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.
- 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.
- 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.
6 comments:
Hi Jamie,
I was wondering if you you could tell me how you scan for your gappers? Thanks.
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
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
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.
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.
Thank you, Jamie. I am now able to minimize the number of alerts and hit the right targets.
Helix
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