Course: Bear Bull Traders Trade of the Week October 9, 2020

Bear Bull Traders Trade of the Week October 9, 2020

Strategy Name – Opening Low Volume Pullback or Low Volume Pullback

Stock gaps up on high volume, then pulls back to VWAP on low volume, then continues the move up higher on high volume.

Time: Best time to find this strategy with the biggest moves are 9:32-9:37 EST, although it can happen all throughout the day.

Indicators:

  • Stock is gapping up
  • It shows up on Turbo Breakup Scanner.
  • Buying Wicks


Confirmations:

  • Pulls back to VWAP
  • Pullback is lower volume than move up


Entry Signal
:

  • If a stock had all those indicators and confirmations, and then had a new 1 minute high, I would definitely go long.


Stop Loss
:

  • Just under VWAP or close by Moving Average.


Target
:

  • Profit target should be next possible resistance or at least 3R.


Rules:

  • Stock must be gapping up
  • Stock must be above VWAP (and ideally all MA’s)
  • Pullback must be low volume
  • Stock must pullback to VWAP
  • Entry can only be on new 1 minute high

 

Trade Management:

Entry was new 1 minute high and reclaiming PM High. Indicators on this trade were 3 prior buying wicks, a pullback to VWAP, and the pullback being on low volume. The stop was the loss of VWAP. I like to partial at R’s or resistance levels. This trade had no resistance levels so I partialed mostly at R’s.

How did you find this stock?

On Turbo Breakup Scanners.

What was good about this trade

The entry was perfect, there were many indicators and confirmations, and there was no resistance so I thought it’d be able to run.

What was bad about this trade

There were selling wicks and a bearish engulfing candle on the 2 minute chart. Usually not something to make me stay out of the trade, but always something to be aware of.

What are areas of improvement for this trade

Not partialing so much when the stock is strong to maximize profits.