3/27/2007 Tue
Trade of the Day: MEDI, ADBE and ERTS
High - Low Bands: Holding Three Stocks
Gapper's
Eye utilizes our original unique stock scanner, Break Scan, and sophisticated
chart software, CQG. With nominal fee, the Break Scan is available to our
members.
The Kamikaze Gap Play
was introduced to the U.S. traders in the
August 2005 issue of Active Trader Magazine.
The Nasdaq gapped down on the open.
As you can see, the index is struggling to take out the resistance level. It's
tough to open new long positions in this market condition.
Double Scan Trading System --
Find stocks appear on both
Swing Scan and Break Scan
This is our new Swing Scan. This has a capability to check weekly trend.
Daily chart below.
The Nasdaq weak open must have
affected this stock.
Daily chart below
It has now three consecutive up -
bars.
Daily chart below
The issue formed a narrow real
body.
High - Low Bands Gap Play Watch
This strategy can be applied effectively by using the
Swing Scan. As the name implies, this system scan stocks for
swing trading. Of course, these stocks are suitable for intraday
trading, too. Don't just concentrate on stocks. Be sure to follow
the index.
The Nasdaq opened weak.
The index is facing a strong
resistance.
Swing Scan Watch
Each figure shows the size of
the gap, the order of moving averages, the new high or new low in the past five
days. The trigger indicates the buying and selling pressure. We do not hold
overnight positions more than five days. A long position will be closed when
the stock gaps down. (Sometimes, the position is liquidated on the second gap-down.)
The opposite rules applies for closing short positions.
Both scans have exactly the same
socks.
This one is our new Swing Scan.
No trade today. I have already three open positions.
Open positions
Gapper's Eye Index
Daytradenet Top
Red
and blue zones show the gap of the preceding day.
The Green zone indicates the profitable zone of
trading.