Free Market Recap Webinar: How To Day Trade Todays Market (usually only for paid members)

You have Successfully Subscribed!

Bulls on Wall Street: Stop Guessing. Start Trading.

Earning season is in full force, this is the time when we mostly day trade stocks that are  gapping up  or gapping down after the earning was announced. There many web sites , where you can find stocks that are moving pre market after the earning was announced. Before the market open today, we found quiet a few stocks that were gapping down below  nearest support and major moving averages . CRUS and RL, two stocks that we shorted for some nice gains.

I'll go over the intraday charts to show how we short these earning news gap downs. So we  want stocks that were gapping down below  nearest support and major moving averages .After open we wait for stock to build an opening range via 5 minute or 2 minute orderly candles . The range could be one or more 5 or 3  minute candles but they must stay below opening range high.If the stock, breaks above that opening high, setup is basically over and move on. Also We don’t want see crazy spike and wide range.If you see that, just move on to next one.  We will be watching to short the stock as long it stays below initial opening range high with stop above opening range high.

crus

1.We have 5 minute opening range. Stock staying below opening range high 57.45.

2.You can short on 2nd candle if it’s below that 57.45 or you can wait until stock break opening range low 56.31

If you missed the initial opening range play, you can wait for 1st bounce to 9 or 20 EMA or VWAP  or previous support ,creating a bear flag pattern and a break below EMA  and VWAP. In this case stock bounce to previous support. opening range low 56.31 and broke below bear flag giving another shot at shorting again.

3.1st bounce to previous support and break down bear flag below 9 EMA ,gave another chance to short again.

RL, basically same setup.

rl

MLNX another stock that gapping down but we passed, reason "crazy spike and wide range".

mlnx

If you want to learn strategies like this, you need to check out our trading courses. Our program is designed in such a way that you come out of it ready to trade live in just 3 months. We teach you everything from risk management to scanning to trading strategies. I also share my profitable intraday trading strategy which will make you money short term regardless of Market condition. The class is one of a kind, see why you should sign up for the course here . You will also have access to a private community where you can ask questions, share charts and talk with the instructors or other traders. You can also check out the testimonials from our students.
Also if you are interested in our day trade alert services and chat room Check them out here.
Follow me on Twitter @szaman and on StockTwits @szaman

About szaman

Sayed is a veteran of the stock market, receiving acclaim for his hot stock watchlists. He trades in the Bulls room and blogs for the site, sharing his watchlist and market analysis daily.

Pin It on Pinterest

Share This

Free Trader Handbook

Get our exclusive “Trader Handbook, The Bible for Traders”. With this ebook you will:

       Create your own perfect morning for peak performance

       Learn how to develop your strategy for evaluating a stock

       Learn proper risk management rules when making a trade

       Get access to our daily trading checklist and list of trader jargon

Plus a lot more

trader handbook

Thanks for subscribing!