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market at that particular moment, or for that matter, the day. A stock with solid signals will run at the open and keep on running all day. The following may help to clarify what is meant by the term relative volume: Relative Volume is a term that refers to the volume of a stock during a specific time frame as compared to, or relative to, the volume this stock typically has for that time frame. For example, if the average daily volume for a stock is 470,000 shares but on this particular day it is 1.7 million shares, there is a large increase in the stock s relative volume. Relative volume can be found for shorter time frames. For example, if a scan reveals that for the past twenty minutes a stock has had a 6,000% in increase in relative volume, as compared to the average volume for that period, concurrent with a price increase, this indicates that a significant rally is under way. Scans can be run for periods as short as five minutes, thus alerting the trader to fresh rallies, usually coinciding with a fresh cross on a 10 or 30 minute chart on Wizetrade. Because of the large number of stocks in the three major exchanges, rallies are available almost all of the time and can be short or long. In addition to scanning for rallies (Rallying Now) in various time frames, scans may also be run for falling stocks and stocks with Big Volume Now. I ran Big Volume Now towards the close of the market and found the stocks most likely to gap the next morning, easy as pie. HotScans is also developing a whole series of presets that are trading strategies in themselves: Opening Range Breakout Up, Opening Range Break Down; Day Traders At New Highs; At New Lows; Gaps Falling; and Gaps Following Through are just a few of them. Links will take the trader to Hot Stocks, Hot Groups, and Hot Sectors another feature which will soon be available, allows the trader to access a select group of the two-hundred best stocks to day trade based on average volume, bid and offer, opening range versus average trading range, total point range, among other criteria. By linking to this group, you will know instantly which of these MarketGauge 200 are having the biggest intraday moves on big volume. To reiterate, every signal I have taken was validated by Wizetrade and followed through as a profitable trade. Does this sound complicated? My learning curve lasted about twenty minutes. It s very intuitive and I needed no instruction. In fact, there was no tutorial for the beta test (there is one now), and I did not need one. A little common sense won t hurt, however. Let s look at an actual trade that I took before Christmas. I was looking for a long on one of those all too often dreary trading days with no volume and negative indices. The scan, which you can view on the next page, came up with twenty-five potential trades (it was mid morning), some long and some short; the scan was on the setting Big Vol. Now. On the next page, I will interpret the results of the first two returns from the scan. What are you waiting for? Turn the page. The first stock to come up was FE on the Big Volume Now scan. Its current price is $32.89. It has lost 9 or 0.2% for the day. The fourth column shows one grey bar and one red bar. Every column has a grey bar, this is the relative price or relative volume against which the comparisons are made. So, if you run a scan and find only a grey bar, there has been no change. Anyway, there is one red bar which indicates a little bit of price movement to the down- side. In the next column there are five green bars indicating a maxi- mum increase in relative volume; in fact, there has been a relative volume increase of 778% during this twenty-minute time frame. One quick glance and I new that I was at the beginning of a very powerful short rally. I did not want a short, so I moved to the next line. This was what I was looking for, a long. I ll interpret the columns for you: BEAS was at $11.70 and up 58 for the day. It was now mid to late morning and I wanted another trade before lunch. Not really a good time to enter a long, unless it had strong signals. BEAS had 3 green bars under % of price change for the scan period and was apparently ramping up. Other columns revealed that although volume was down a [ Pobierz całość w formacie PDF ] |