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4/9/2007 Mon
   

Intraday trade With Hatch #3

High - Low Bands: Closing Positions


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 opened higher, but reversed and formed a down - bar.

 

Hatch #3

Exit half by using 3-minute chart with high - low bands. The rest will be exited 10 minutes before the close.

 

 

 

 



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.

 

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.   

 

Open Position 
 

This is the fifth day. I closed the trade.

 

76.70 to 77.60

+1.0 point

 

 

Hatch #3

 

 

Open positions shortly after the open. Exit positions just before the close.

Because the Nasdaq reversed to the downside shortly after the open, you had to time your entry by utilizing 3-minute charts. In other words, you had to wait for stocks to pull back to the gap and reverse.

The stock found its support at the lower boundary of the gap.

 

The stock found its support at the lower boundary of the gap.

 


The stock found its support at the lower boundary of the gap.

 

 

And how did they move afterwards? 

 

 

+0.66 point

 

-0.07 point

 

+0.19 point

 

 

total  +0.78 point

 

 

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.