2 day trade set-ups/for monday 7-26-10

Discussion in 'Trading' started by simpletrade, Jul 24, 2010.

  1. 1. LNCR go long at 23.95 - stop at 23.25. This is a 2.9% risk or 70.00 per 100 shares traded. The slow stoch is oversold and registering a 5. Special pattern is smallest range of 5 - the highest velocity trading moves often occur immediately following periods of low volatility and tight daily price range contraction. The smallest range of the last 5 trading days is one such pattern that statistically leads to good price moves when it occurs within the context of the normal buy signal.
    2. HOLX go long at 13.55 - stop at 13.10. This is a 3.3% risk or 45.00 per 100 shares traded. The slow stoch is oversold and registering a 9. This has the same pattern as stock number 1.
    RULE NUMBER 1 WHEN TRADING NEVER BUY A STOCK BEFORE 10AM even if it hits the buy price. Wait for a pull back and re-evaluate. Chart settings are 5min. chart with 5sma,8sma and 30 sma. Set the slow stochastic at 14,3. Your targets if you get in these stocks are 2.5% , 5% , 7%. No more than a 5 day hold time.