4/11/2007 Wed
Trade of the Day: FSLR and RIMM
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 green dot indicates the opening price. The index
is in the long zone.
And, the index finished the day
with a down - bar.
Swing Scan with weekly filter shows
FSLR.
As you can see, the stock formed an
up bar yesterday.
So, let's move down to the 1-minute chart.
By using the usual trading method, the first trading profit was 0.5 point.
And , Hatch #3 signaled us a
pullback buy.
+1.22
Exit half by using 1-minute chart with high - low bands. The rest will be
exited 10 minutes before the close.
If you loosened up gap condition,
RIMM would show up.
But, this was not tradable because
the stock reversed immediately.
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.
FSLR was the only stock with strong
weekly trend.
Also adjust gap parameter to increase candidates. These two stocks have
strong weekly trends. Be sure to check daily charts, too.
Hatch #3
No stocks, so turn off YW1.0.
This is a pullback buy pattern.
+1.22
Hatch #3
No stocks with strong weekly trend.
This should have been a long
candidate.
Open a position and exit shortly
before the closing time. Of course, you don't have to trade this one. The
yesterday's bar is a bit bothersome.
+1.22 point
Up $1440 if you traded 1200 shares.
With $25,000, you can buy up to $100,000.
Now, removing gap restrictions.
This was not tradable.
This was a potential entry point.
It did not work out.
-1.26 point
If you traded, you lost $378.
With FSLR profit, your total is
+1062 dollars.
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.