Marketgems Earnings Trader- Trading Strong or Weak Earnings Growth

[jenna]

Intraday 'microtrading' Strategies



1) remember to carefully look at DECLINING key moving averages. We use the declining 20 period moving average as a key area of resistance on the 5 minute chart. We also use the 200 (especially on down days when this support is usually taken out and on very up days we might prepare to short a 'spike high' that is above the rising 200 period ma) Either way be very cognizant of PATTERN and RESISTANCE failures. Any upside you might have might be shattered as the 20 period moving average is 'hit'.. You might have 3 attempts to break and 3 failures and the fourth might succeed. These 3 failed attempts will be great areas of further shorting and eventually we might expect a 'successful' test.

2) Remember also that 3 pattern candlestick breakouts (especially the day of the 3rd candestick pattern) are STRONGER and have higher reliability than 1 or 2 pattern breakouts. We need them all of course. You don't want to short or go long after a 3 pattern break, but if you come into the trade on the BEGINNING of the third day you might get the biggest gain of all.
See CMVT below. Three Outside Down patterns are great prognosticators for a continuation of downside (usually I get the stock short BEFORE the third pattern is over so look for a bearish harami or bearish engulfing to precede the finally range expansion bearish breakdown)

http://www.marketgems.com/CMVT_3_outside_down.gif


3) The Rising Wedge on an intraday chart is a VERY IMPORTANT continuation pattern. This one might last a big longer so you might be unprepared for the failure here. But you will notice the shrinking range and usually the failure is at a declining moving average or trendline. We almost always get these in stocks like QLGC, NVDA, EMLX, GNSS or any tech blimp.

http://www.marketgems.com/ADVP_rising_wedge.gif


4) One of the best intraday pattern reversals is the DARK CLOUD COVER This will be best after longer upside and even better after the stock has already broken a declining trendline to the upside.

http://www.marketgems.com/declining_trendline_candlestick1.gif

http://www.marketgems.com/NVDA_hoping.gif
http://www.marketgems.com/EMLX_intraday_map.gif
http://www.marketgems.com/EMLX_resistance_failure.gif

http://www.marketgems.com/CMVT_failed_breakout.gif