This is why I could never run a TIM alert type service. You can't plan in advance for a stock like ACF that gaps down and heads lower on 25X normal trading volume. Of every stock play, this is my favorite, and I play them every time they come up like BQI and VSE. I wasn't logged in to the chat so I have no idea if this play was called. I will read the chat logs later tonight. This was also a perfect reversal play but I didn't play the long side. That is something I need to improve upon. The key to these types of plays is the trading volume. 15X or above and I know something bad must have happened. Muddy says the Scott hod list has made him lots of money from spontaneous stock plays. I have to say that Trade Ideas is my equivalent. I wouldn't want to trade without it.
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I'm curious...at what point would you try to play the long side on this? I look at the intraday chart and it looks tough. This one bounced pretty fast and I could see a situation where you get caught in a dead cat bounce only to see it go lower (although this one didn't do that).
I'm almost thinking that playing right around $4 is probably the safest way. Actually there was a 10/60 cross near the $4 mark, and if you had held near the close you could've gotten out around $4.40 - $4.50 for a nice 10% gain on your positon.
yeah the long was a very difficult entry for that reason so I passed... it's almost a chart feel thing, when 11/12 candles in a row are red, and it's 50% down at 3 which you know can't hold, and you get 2 green candles in a row you can call that the bottom... I should have played it in the 3.60's... but yeah these are tricky, by the time you get any confirmation the play is already over
Unplanned ones for sure...you see the hod list covered,i mean covered by a stock on a wicked up spike...just wait for the 3-5% pull and short....GOLD!
Hey Johnny, I know you have Trade Ideas, or where do you get this sort of stock? The lod and hod lists are just too fast for me that time of day which is why I ask.
I remember you calling BQI that day, it was great! The long bounces are obviously not an exact science, but they can bounce so nice, perfection isn't even required;..if I remember BQI was around 1.85(ish) and then almost to 3 that same day (and in very short time).
Hi Matty,
yes in my early days of being in the chat I was pretty worthless in the mornings. (I tried to add value to the chat by spotting afternoon rockets.) When I started working again I knew I had to get better at trading in the morning. What I do now is run Trade Ideas using a watchlist of 1000+ stocks that I have derived by backfiltering the "deadly combo" filter that Muddy/13th use going back 13 months. In this way I can simulate Muddy's "brain" by having access to stocks that I have not personally witnessed as being huge day rangers but that I know from the statistical analysis have been huge rangers in the past. I will eventually expand this list to include all high day rangers including those that do not meet the deadly combo criteria (adr30>8 and 10-19% runners 10 times). The list is somewhat anachronistic because some of the huge rangers from the past are now penny stocks and should probably be eliminated. The value of Trade Ideas is that it is actually FASTER than the hod list, if you can believe it, since i can see the relative volume on the TI alert and so I know whether to chart it or not... many hods I skip because the volume is anemic... and I'm looking for that needle in the haystack, a BQI/VSE/ACF etc
Hey Buddy,
It's been a while since you posted. Everything alright?
RJ.
Hey JV - hope you're finally 100% recovered. Thanks again for all the great posts.
-Banana
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