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4/11/2007 Wed
   

Trade of the Day: FSLR and RIMM

Intraday Trading with Hatch #3


Gapper's Eye utilizes our original unique stock scanner, Break Scan, and sophisticated chart software, CQG. With nominal fee, the Break Scan is available to our members.  

The Kamikaze Gap Play was introduced to the U.S. traders in the August 2005 issue of Active Trader Magazine.



The Nasdaq opened flat. The green dot indicates the opening price. The index is in the long zone.

And, the index finished the day with a down - bar.

 

Swing Scan with weekly filter shows FSLR.

As you can see, the stock formed an up bar yesterday.

So, let's move down to the 1-minute chart.

By using the usual trading method, the first trading profit was 0.5 point.

 

And , Hatch #3 signaled us a pullback buy.

 

+1.22

 

Exit half by using 1-minute chart with high - low bands. The rest will be exited 10 minutes before the close.

 

If you loosened up gap condition, RIMM would show up.

 

But, this was not tradable because the stock reversed immediately.



High - Low Bands Gap Play Watch

This strategy can be applied effectively by using the Swing Scan. As the name implies, this system scan stocks for swing trading. Of course, these stocks are suitable for intraday trading, too. Don't just concentrate on stocks. Be sure to follow the index.

 

Swing Scan Watch

Each figure shows the size of the gap, the order of moving averages, the new high or new low in the past five days. The trigger indicates the buying and selling pressure. We do not hold overnight positions more than five days. A long position will be closed when the stock gaps down. (Sometimes, the position is liquidated on the second gap-down.) The opposite rules applies for closing short positions.   

 

FSLR was the only stock with strong weekly trend.

 

 

Also adjust gap parameter to increase candidates. These two stocks have strong weekly trends. Be sure to check daily charts, too. 


 

Hatch #3

No stocks, so turn off YW1.0. 

 

This is a pullback buy pattern.

 

+1.22

 

 

 

Hatch #3

No stocks with strong weekly trend.

This should have been a long candidate.

 

Open a position and exit shortly before the closing time. Of course, you don't have to trade this one. The yesterday's bar is a bit bothersome.

 

+1.22 point

Up $1440 if you traded 1200 shares.


With $25,000, you can buy up to $100,000.

 

Now, removing gap restrictions.

This was not tradable.


This was a potential entry point.
 

It did not work out.

-1.26 point

If you traded, you lost $378.

With FSLR profit, your total is +1062 dollars. 

 

Gapper's Eye Index

Daytradenet Top


Red and blue zones show the gap of the preceding day.
The Green zone indicates the profitable zone of trading.