One of my favorite triggers on a stock is the Red to Green move, also known as R/G. We use this many times a week as a way to time our entries in particular stocks. The essence of the trade is that the stock is weak in the morning, and then rebounds and goes green, so it’s positive for the day. Typically, that can brings in a surge of buyers, which lifts the stock. Not every stock responds to a R/G move, otherwise we would all be millionaires sitting on the computer buying every stock when it goes green. R/G is not really a setup, but rather a trigger for other setups. I find they work best on stocks that either have a big washout/flush or on momentum stocks that are breaking out and open weak in the morning, bringing in a rush of dip buyers – this usually provides a good scalping opportunity. It’s a quick trade; very rarely do they last more than 30 minutes. Most of the time, they last only 10-15 minutes.
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