AI
Tuesday, August 26, 2003 1:37:08 AM
GCO was really just looking for a trading buy from 10:00 (potential exhaustion move down) and it did move from 16.40 to a high of 17.06. These plays are really not meant to be held just bought off 5-minute bar set ups at key reversal periods and the best reversal period is the 10:00 to 10:15 period.
Notice in this example from MTON. We have the breakdown and the Gap 'n Crap but there is an "exhaustion move" that is over and reverses by 10:00 (or 10:15). The uptrend is relatively short (from 30 minutes to about 2 hours) but quite enough when you "anticipate" the move and are ready for it. A very important "Marketgems Earnings Play Strategy" is the REVERSAL move after any morning gap and crap. The best plays to trade in these 2 situations are EARNINGS PLAYS simply because you are prepared for them well in advance.
The next chart is a GAP down but without the "crap" and the reversal is IMMEDIATE and usually lasts until a resistance area is hit at a spike high.
Notice in this example from MTON. We have the breakdown and the Gap 'n Crap but there is an "exhaustion move" that is over and reverses by 10:00 (or 10:15). The uptrend is relatively short (from 30 minutes to about 2 hours) but quite enough when you "anticipate" the move and are ready for it. A very important "Marketgems Earnings Play Strategy" is the REVERSAL move after any morning gap and crap. The best plays to trade in these 2 situations are EARNINGS PLAYS simply because you are prepared for them well in advance.
The next chart is a GAP down but without the "crap" and the reversal is IMMEDIATE and usually lasts until a resistance area is hit at a spike high.
Unleash the power of Level 2
Spot liquidity moves with access to US order books.
