Not A Trade
Collecting Data for new Day Trade Setups
So here is something new I am looking into, I am looking for stocks that gap below previous support areas or above previous resistance areas. This stock did a massive gap, look at the chart on the left (Daily Chart), $DLLR opened below the previous low (red dotted line). In the chart on the right it went up a bit but did not have strength, the chart on the right is a 5' minute intra-day chart, notice how I carried the previous line into this chart and LOOK, look at the YELLOW circle, the stock stopped in its tracks and broke down like a little wuss. This would be the ideal shorting spot. Key goal in this type of trade is to anticipate scenarios on paper before the bell rings. I did this with $FDX, click $FDX and you will see it is a similar fade type of play. I will work on developing more of these in the future, I will stay away from trading these though as I have to collect more data and setups to actually make them apart of my trading plan.
*Right click picture, open in new tab*
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