RUSL one of the ETF that proxies Russian stock market has been down for days and really oversold on daily charts. As a trader when stock gets way oversold you need to stalk it for a potential bounce.
As you can see the stock has been on a steep downtrend and extremely oversold. It came back all the way from a high of 9 and gapped down today to a low of 1.67! To me this gap down means a potential climactic selling as everyone just gives up on it. As an active trader this is your opportunity to get involved . I traded this one on our chat room and posted live on Twitter for almost 56% gain day trading.
Let us look at a intraday 5 minute chart to explain various ways you could have traded this stock.
1.Huge gap down at open. Aggressive trader can buy the start of the first green candle with stop below here.
2.Stock gets a fast bounce and fades back, this is where intraday setup techniques comes into play.
3.Intraday buy setup came on this higher low and flag break, back over VWAP at 1.83 with stop right below 1.75.You want to see the dips get bought for sustainable bounce continuation. This is one the setup that we teach in various details in our trading bootcamp . One of our “goto” setup with huge reward with little risk.
4.Another buy spot came in once broke out of the opening range (ORB) at 2.
5.The stock squeeze a fast massive run to 2.90. Over 50% gain with .08c risk.
If want to learn more about this or many other trading techniques on how to trade momentum stocks for fast gains with low risk,you need to join our 60 day Bootcamp course. 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.
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