the reason i don't use 1/8 above the high of the last bar is that often the last "blow off" day is a large percentage of the total move down encompassed in the 3+ days. I only expect it to bounce back a little... normally like 2/3 of the way or so... Which is why I also scale out. Unfortunately I don't have a scan for these. I try and determine sectors that I see a lot of red in, and then I just look at the individual charts. I do a lot of trading homework, but it gives me a great feel for what is happening each day. The only scan I occasionally use is to do a scan of any stock that is showing 250% of the day's volume. But I also get like 100 names to look at, but I can screen it down in half or so cause most of the names are that day's news stories.
For instance on thursday night, I saw a lot of red in the defensive names, particularly the foods, natural gas, and hospitals. So I then just pulled up about a half dozen charts of each so that I would have like 3 candidates in each sector, cause if the sector bounced, so would the individual names. I just wanted to play those stocks that looked most overextended cause they would bounce the most. I hope this helps some. These aren't huge swings.
On bud, I think I made an average of 1.5 points on 3k shares. I entered all 3k at 39 5/8 and just started selling like 900 every half up. On the stuff like cah I only played 700 shares b/c it is more volatile. Same with WLP. Only 700 shares and I bought them at like 98.25 which was only after 30 mins, but I liked that congestion and I knew that the bottom of that congestion was my stop so I was only risking like 1.5. Finally I have become pretty good at reading specialists and that's why I prefer to play these in the listed names, but you can play them on the otc ones too. If you see, I lost on RKY on fri, (if you look at the intraday, RKY never made a new hod besides that stop blower it did at 1:30, so I had no reason to really even be in, but some of this is subjective, by the way I only played 1200 shares b/c I have traded this one before and not had much success b/c the specialist loves to play with stops and make rapid moves on little volume to fake people out) I will probably try and play it again on monday.
This is long, but I hope this helps and makes sense.
For instance on thursday night, I saw a lot of red in the defensive names, particularly the foods, natural gas, and hospitals. So I then just pulled up about a half dozen charts of each so that I would have like 3 candidates in each sector, cause if the sector bounced, so would the individual names. I just wanted to play those stocks that looked most overextended cause they would bounce the most. I hope this helps some. These aren't huge swings.
On bud, I think I made an average of 1.5 points on 3k shares. I entered all 3k at 39 5/8 and just started selling like 900 every half up. On the stuff like cah I only played 700 shares b/c it is more volatile. Same with WLP. Only 700 shares and I bought them at like 98.25 which was only after 30 mins, but I liked that congestion and I knew that the bottom of that congestion was my stop so I was only risking like 1.5. Finally I have become pretty good at reading specialists and that's why I prefer to play these in the listed names, but you can play them on the otc ones too. If you see, I lost on RKY on fri, (if you look at the intraday, RKY never made a new hod besides that stop blower it did at 1:30, so I had no reason to really even be in, but some of this is subjective, by the way I only played 1200 shares b/c I have traded this one before and not had much success b/c the specialist loves to play with stops and make rapid moves on little volume to fake people out) I will probably try and play it again on monday.
This is long, but I hope this helps and makes sense.