Trading Intraday Momentum:ARNA

Biotech name has been on fire lately, pretty much every day we are seeing another biotech stock making 30,50 even over 100% run intraday. So how does a new trader catches a piece of the action? In this post i will dissect a biotech stock that we played in out chat room today. ARNA was the flavor of the day today in bio world of trading. Stock was up almost 80% intraday. Let us look at a intraday 5 minute chart to explain various ways you could have traded this stock.
















1.Gap up open for stock. Often time when a stock gaps up or down, you need look for an intraday setup. The 1st set up is the open range break.

2.Run up stage. If you missed the open range break ,no real setup for entry in this stage . If you chase and buy the stock in this stage, you might make money few times but eventually you will lose money. You need a setup to enter into a trade.

3.If you miss the open range break , you want to see some pullback or consolidation. So here we have the first consolidation stage. This where you need to focus on a entry.You want see higher lows until intraday moving averages catch up. We can long this stock here around 4.72 with stop below 4.50.

4.If you missed pullback/ consolidation entry, stock kept on providing opportunity throughout the day on every pullback to the moving average and trend line. Entry on the bounce of moving average and trend line with stop below.

5.Stock made a high of 6.10. If you just hold a position from original 4.72 entry, that would have been over 29% gain with .12c risk. You could have also added multiple times to accumulate additional gains.

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.
Also if you are interested in our trade alert services and chat room , take a free trial!check them out here.
Follow me on Twitter @szaman and on StockTwits @szaman
Check out our newest Offering “Bulls Vision” ! A brand new screen share product! See through the eyes of @kunal00 while he trades live everyday.








Stock & Option Software used by Bulls on Wallstreet

Social Media

Related Posts

Stop Guessing.
Start Trading.

Secured Checkout Providers

Don’t Miss Out

Pre-Market Live-stream

Tuesday’s and Thursday’s at
9:00 AM EST.

Connect With Us…