Recognizing patterns and predicting future movements

Pattern: Low float big gainer premarket reclaiming high after market opens

This pattern is important because it proves itself over and over again. 

Low float and big gainer with news goes up pre market, creates a deep and then goes back up around after market open sometimes around 9:45 (15 min after market open) either earlier or later. 

This setup avoids trading during the market open due to its choppiness. This also lends a good opportunity for a better entry. Ideally wait for confirmation by waiting to reach pre-market high. 

VWAP Hold HOB break, with news at or around 52’s 

This is a stock that spiked earlier during the day and is consolidating around VWAP. Ignore it midday or when stock hangs around VWAP line. Great setup for part time trader. 

  • Must have news 
  • Goal is to sell into the close for profits 
  • Great for PDT, means could hold stock overnight as tend to continue next day 
  • 3 month high or 6 months also OK makes it even better setup 
  • This is could be great for growing accounts

“Squeezer”  junk stock hitting previous days highs 

  • Basic idea is watch this pattern which begins from previous day
  • On the next day it will consolidate and when it does break previous high, that’s the pattern and that’s the entry 
  • Set stop a few cents where consolidation is 
  • This stocks moves fast 
  • Very high risk potential gainer 
  • Helps if low float 
  • The reason this will spike up most of the time is when a lot of stocks are being shorted and when it does go higher, they will buy to cover and that drives the price even higher

The Ripper – Spike early, spike mid day, spike late day 

  • Multi Day spike
  • Buy off support when it dips and comes back to support level 
  • Early move that sets intraday support level 
  • Stock dips and reach earlier spike
  • 2pm type trade 
  • Set stops few cents below support 

Weak open red/green – higher quality, previous day’s big gainer, milti day gainer, also previous days low float junk runner 

  • Swing trading pattern 
  • Quality stock, say $10, $15, 20th ish even 50 (example AMD) 
  • Uptrending all day 
  • Do typical check, like news, etc
  • Typically spike early 
  • Close at or around high of the day 
  • All day pattern, wait for it to happen, let it come to you 
  • Side note: on a $11, a 10~30c loss is an exceptional loss 

Earnings winner or “quality news” stock pushing HOD post 2pm 

  • Keep it simple
  • This is more of an overnight setup 
  • Stocks spikes early right after the earnings report
  • Spikes to high of the day 
  • Doesn’t matter what the earnings or news say but watch if it is up trending all day 
  • Watch for stock steadily uptrending all day 
  • Then around 2 pm it breaks (move up more) 
  • Check other things like stocks at 52 weeks high 
  • Need to figure out entry, probably

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