This is one of my favorite intraday scalp setups.
In order to find this intraday move, I have a screen that I start running about an hour after the market opens. The screen looks for stocks that are up for the day and are printing new highs on high relative volume to previous days. It doesn’t do any good to run a high-of-day (HOD) scan at the open.. there will be too much noise and everything is at the HOD at the open. That’s why I wait an hour and then start running this scan.. To trim down the list even further, I look for stocks under $10.
Once CHINA showed up on the screen, I tossed it in the intraday chart for evaluation. It’s a perfect setup. The morning high touched R1, so that gives us more of a launching pad if it breaks out. So, I watch and wait. Then, boom, at 11:30 the volume moves in and the drives the price through morning highs and R1 – this is my entry (notice the volume support… nice). Also, notice that I haven’t mentioned the daily chart once. That’s because this is a screen and trade intended for intrady only. I want the scalp and that’s it.
As with all scalps, as soon as it shows signs of weakness, it’s time to sell and move on.
Click chart to enlarge.