Important Stocks To Watch - Breakout Stocks/ Important Developments
This day trading strategy focuses on the first 1-2 hour of the trading day. It is suitable for those who want to only trade the early session. This trading strategy is quite similar to the 5 min ascending triangle day trading strategy. The only difference is that this trading strategy only happens in the first 2 hours of the trading day.
What this means is you find the 5 min ascending triangle in the first 2 hours. Anything after that is not valid. As you might not want to spend the whole day looking for the ascending triangle.
Here are the criteria for this day trading strategy:
Let's take a look at the 5min chart of HLBZ above.
There was a 5 min ascending triangle. The trader should buy the breakout and put a stop loss below the entire pattern.
1st target is where you achieve a 1:1 ratio of risk: reward. Meaning if you risk $100, when you area making $100, sell 1/2 or 2/3 of your position. Sometimes the stock can go higher and the remaining half position is used to ride the trend higher.
But since we are only interested to play the stock for the first 2 hours we do not want to hold the stock any longer than 2 hours. Sell the stock around the 2 hour mark. Sometimes it could be earlier sometimes it could be later. But try not to hold the stock past 12 pm Eastern Time. That is when lunch starts to come in and some stocks start to collapse.
Join Dstockmarket's Facebook Page
May 30, 22 07:20 AM
What is the market doing and what is it likely to do?
Apr 27, 22 09:01 AM
As we enter April, will we continue to move higher or will there be a correction coming?
Apr 13, 22 11:46 PM
Apple is one of those stocks that we should look at almost every day. The reasons is because it is a component of the Dow Jones, the S&P 500 and the Nasdaq.
Apr 12, 22 09:38 AM
Here are a list of stocks that are at their 50 MA and 200 MA. The 50 day moving average and 200 day moving average can be a support area where stocks bounce off
Apr 12, 22 09:34 AM
Here are a list of stocks that have broke out or about to break out. Breakout stocks can often give us a good reward to risk ratio.
New! Comments
Have your say about what you just read! Leave me a comment in the box below.