NOT ABLE TO TRADE IN THE MORNING? TRADE USING OUR AFTERNOON SETUP

Sometimes trading in the morning will not be possible and this is the reason we have develop a high probability setup in the afternoon. Requirement: stock screener which is available to all trading platforms. 

A stock that had been moving sideways throughout the day has a small chance of making a move, also stocks that have moved parabolically throughout the day could have possibly reach the most stable price level for the day and will no longer have a significant move in the afternoon. 

Knowing when to use this setup can significantly improve your day trading especially if you are not able to day trade in the morning. 

The idea behind this is traders who were short the whole day will be covering their position in the afternoon before the market closes since day traders has no intention of keeping position overnight. 

Criteria:

1. You need to have a stock scanner that is cable of sifting through thousands of stocks. I used DAS trader pro. In DAS trader pro: use the market view and through market view click the NYSE and NASDAQ top losers.

2. From the top losers' lists: specific criteria need to be considered to be able to make this setup work.

Some of the criteria are:

A. Stock that is down by >4% from the open

B. Price must be down until 2 pm with a small significant bounce. 

C. Volume of at least 1 million shares.

D. Stock price of > $5.00.

This is the strategy that we used today that made a return of $1600. 

Learn where to place the proper stop loss, entry and target price to profit from this setup by signing up in our online course.