4/10/2007 Tue
Trade of the Day: ADSK and BBBY
Intraday Trading With Hatch #3
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 flat. The index is in the long zone.
There were no trading candidates with weekly trend filter. Of course, if you
want to trade, loosen up parameters !
This one is good pattern.
No trade. The issue has three
straight up - days.
Exit half by using 3-minute chart with high - low bands. The rest will be
exited 10 minutes before the close.
These three stocks have strong weekly trends. Do not worry about how MAs are
lined up when you day trade them.
You can use the 1- or 3-minute
chart. It does not matter which time frame you select.
Time your entry by utilizing high -
low bands.
These are stocks from Hatch #3.
Find the bottom by placing high -
low bands on the 1-minute chart.
You can see the previous day's gap is a potential bottom. The daily and
weekly trend are strong. Don't worry too much about fine tuning your
entry.
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.
No stocks with weekly parameter on.
So, let's remove weekly trend
restriction !
Also adjust gap parameter to increase candidates. These four stocks have
strong weekly trends. be sure to check daily charts, too.
This is a good pattern.
No good. It has three consecutive
up - days.
No good. It has three consecutive up - days.
The prior day's candlestick is too
long.
Hatch #3
No stocks with weekly parameter on.
Open positions shortly after the open.
Exit positions just before the close.
+0.56 point
Up $672 if you traded 1200 shares.
-0.16 point
Down $196 if you traded 1200 shares.
Total +0.4 point
Up $480 if you traded 1200 shares.
All you need is $25,000 of trading
capital. You can buy up to four times your capital.
Let's add them all.
+0.37 point
Up $444 if you traded 1200 shares.
+0.17 point
Up $204 if you traded 1200 shares.
First half: Up $648 if you traded
1200 shares.
Second half: Up $480 if you traded 1200 shares.
All you need is $50,000 of trading
capital. You can buy up to four times your capital.
After commissions, your profit is over $1000. Not bad for a trend less day
!
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.