|
Power
Trader - Examples
Stock showed up on my Power Trader Scan
when it was trading at 63.50 and was on pace to trade
higher than average volume. What I liked about this
setup was that the stock had consolidated for five weeks
and was finally breaking out through resistance. This
was the first day of the move.
Stock trades up to 74.88 over the next
seven trading days. Please note that the stock did not
take out the high it made on the first day of the move, on
day-two, or day-three. This is very common. If you bought
the stock on day-one, it would be smart to place a stop
loss below the low of day-two and adjust the stop with
every day from that point forward. This would have kept
you in the trade all the way to day seven.
Since this scan is very similar to the
Usual Suspects Scan, you could use the same examples that
were used here.
We can also use this scan to find bottoms formed on high
volume. The main difference between the two scans is that
you will not get as many results on this scan as you would
on the other one due to the stricter guidelines that this
scan follows.
Stocks that show up on this scan at the
end of the trading day have a good chance of making a
higher high the following day. However, the higher high
could be one cent higher, so do not hold these stocks
overnight only because they have a good chance to make a
higher high.
Add
the stock trading software, Oz Scanner, to your
RealTick® subscription for only $20.00
Click here
to subscribe
|
