Trade review on LEI. Good trade. This was a swing/momotrade. 1st we add as a swing trade on support right on the 20dma. When you have a momo stock you have to realize the traders at some point will chase the breakout. But to anticipate it with a swing and get in early while yoru risk is small with a stop under support. then double up on the breakout. that way you have a great avg and you get to participate in the breakout but you also have your swing shares.
our first buy was at 3.35 then we added more on break 3.5s. was selling selling shares all the way up as i had a 2.5x positon.
http://www.screenr.com/eio
do you scan for setups like this? something like… a stock has exploded to the upside via a measurement of X% (100-200%) above the 20dma in the last 10-20 days and is now approaching the 20dma from above (1-4%) in the last day or so?
these bounces do happen off stocks that have gone parabolic we have done them over and over. what i often will scan for is the top 100 stocks with momentum and then flip thought them often stocks will be pulling back to big support levels after a big run.