No momentum

[Don Bright]

Originally posted by Rigel
It's my understanding that if it's a NYSE stock the specialists and maybe the floor traders will know where the buy stops are (usually near whole numbers, etc.) and kick the price up if they can in order to activate the orders, which in turn causes the price to rise a bit so they can scalp. If there is no Real interest in the stock, the price will then collapse back down to where it was a few minutes earlier.
Does anyone know if this same idea applies to NASDAQ stocks?

You have to remember that there is no centralized marketplace for the Nasdaq, so there cannot be any way of the same thing happening. By reading the NYSE tape, you can usually get involved when you see the Specialist getting ready to do a "print" at a price away from the current market. This technique will alert you to the times when stops are going to be triggered.

We don't recommend that our traders use stops, rather we rely on alerts or other triggers to let us know when a stock hits a breakout or breakdown level. This way we can take into consideration other market data to determine if want to get involved.

 

[trade555]

Breakouts and breakdowns are a good way to trade but alone they don't work to well. I have found if you use a MACD and moving average they work better. The other thing I look for is a big bid with aggressive buying on the offer. You will know the stock is going to take off when the ticker is all green. I want the offers to be moving out of the way with very little resistance.

 

[hapaboy]

still work very well, especially volatile stocks that break the 30-min high or low.......

 

[roger2]

Originally posted by Smikkey Trader
(edited).... Then, after the first 60 minutes or so, I pick relatively strong (or weak) stocks, and scalp them based on simple overbought/oversold indicators for 20-30 cents on increased size. .....(edited)

Smikey Trader, I was just curious about the "simple overbought/oversold indicators " you mentioned in this post, what are they???



Thanks