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Sky
Scraper
The Sky Scraper Scan filters the entire
market searching for stocks that have traded up for at
least three consecutive trading sessions and are currently
trading lower and signaling that a potential
short-term top might have been formed. Based on
swing trading methodology, this scan is the bread and
butter of my trading. It represents me with very high reward to risk ratio.
The basic setup is featured in the
above illustration. It can be for a stock that is in an
uptrend or downtrend. The trigger event for an entry is
for the stock to be down from yesterday’s close. As long
as a stop loss above today’s high is an acceptable risk
while trying to capture the price target reward, you can
enter the trade. Otherwise, you would have to use intraday
resistance levels.
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