Trading Gaps and Breakouts (Stocks)

The last few weeks my posting frequency has gone down a lot. Toni went to Europe with her mom during that time so I was left pick up after myself, wash my own cloths, buy and cook my own food, make sure the cats got fed and get up to work every single day, all of this with no one to remind me. :D Anyway, all of it was overwhelming for me and I did not post much. Now that she is back I will continue updating the threads here on a daily basis (starting monday) on ET again.

Brandon
 
If you're strategy calls for looking for very large gaps on the daily charts, and you're expectation is for it not to fill, why would't you hold the trade longer than just for intraday. Just curious.
 
Quote from SimpleSimon:

If you're strategy calls for looking for very large gaps on the daily charts, and you're expectation is for it not to fill, why would't you hold the trade longer than just for intraday. Just curious.
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They very often start to fill the next day from what I have observed. The data I am comfortable with comes from the same day the gap occurs.

Brandon
 
CKFR.gif



[10:04] <brandon> % gainers since the open, losers since the open, gaps above/below opening price
[10:04] <brandon> another thing to look for are stocks which are up sharply on heavy volume
[10:05] <brandon> you can look at the daily chart of CKFR and see it already has more volume today then any other day for a few weeks
[10:05] <brandon> so it meets this criteria and is on my list as a stock I want to keep an eye one
[10:05] <brandon> one of the primary reasons to look for volume increases
[10:05] <brandon> is that volume is like oxygen to a fire
[10:05] <brandon> it will fuel it and keep it going
[10:05] <brandon> so that is how the stock came to be on my list in the first place
[10:05] <brandon> one its on your list
[10:06] <brandon> you can't simply just willy nilly buy or sell though
[10:06] <brandon> well, you can but you might not be happy with the result
[10:06] <brandon> so as you find these stocks
[10:06] <brandon> keep an eye on them for setups such as bases and flags
[10:06] <debbieg> ceco nice B
[10:06] <brandon> in the circled area here on ckfr you can see that we had a nice bullflag
[10:06] <brandon> which was our setup
[10:07] <brandon> thx :)

Brandon
 
[10:56] <brandon> ok here is CECO
[10:56] <brandon> we had this from +57.75
[10:57] <brandon> again back to scanning
[10:57] <brandon> one of the best sources of trades is in the gaps
[10:57] <brandon> look at lists of stocks which gapped up
[10:57] <brandon> and do not fill their gap
[10:57] <brandon> these are the strongest stocks on the board
[10:57] <brandon> they are fighting the natural tendancy to fill in a gap
[10:57] <brandon> which shows strength
[10:57] <brandon> once you ID these stocks
[10:57] <brandon> its simply a matter of patience
[10:57] <brandon> waiting for the setup
[10:58] <brandon> nothing moves in a straight line
[10:58] <brandon> there are going to be breaks
[10:58] <brandon> flags
[10:58] <brandon> bases
[10:58] <brandon> and those are what you want to be always on the hunt for
[10:58] <brandon> so here with CECO we had a very nice base occur after it ran a bit
[10:58] <brandon> and when that broke we had another nice move

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Note that I gave this in the chatroom above 57.75, but when I mentioned it here on ET It was above 58.

Brandon
 
This is a ways off, but I wanted to give a bit of advanced warning anyway.

On Saturday, May 31st Trading From Main Street will be giving a free seminar here on Elite Trader. We have not yet formalized a time for it to start, but generally when we do these they last 5 to 7 hours. In the past they have been pretty well attended (average around 350 people). We start off with the basic things (Trends, support/resistence) and move out pretty quickly from there. By the end of the day you will definatly be armed with the tools and tactics that can make you profitable. (the harder part is putting it together yourself).

The presentation will not be a sales pitch (If it takes on that, I will pay you for your time wasted) but will be full of useful things that will impact your bottom line.

Obviously this is not the official "sales pitch" for the seminar (I'll let other people work on that for me), but because it will take up an entire Saturday I wanted to give some advanced warning.

Brandon
 
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