Many of you are probably wondering how to find end of day hod (high of day) gapper plays.
These can bank FREE coin while you sleep! Then more upside can follow, or if it fizzles, you simply take profits shortly after the open of the next session.
I use a simple, quick and dirty method to find the plays.
First, get a subscription to http://www.stockfetcher.com/ this can be very cheap, like 25 bucks per quarter.
Second, scan using penny stock scans you devise and save to your account list to find stocks up over 8% or so on the day, running it in the last 10 minutes of the day to find the candidates.
I use a few custom scans to locate plays with stocks up to 10 bucks a share and some under a 1 dollar.
Use a candle stick daily chart.
You can see the daily candle of a target stock with no upper shadow on its real body, which is also strong on the day. This is what you are looking for. For example, SFMI from this past Friday was a candidate.
Since stockfetcher is not up to the second updating, even with a paid subscription, you bring up LIVE charts with back fill on a charting package like Quote Tracker, a free program using your broker's data feed.
You enter right near the bell in the last minute if it appears to be closing on its highs in real time, according to your live charts. The idea is you are playing for a gap up freebie the next day and maybe even more, depending upon on things go. In some cases you can bail premarket, but this is usually not the idea.
If you select strong looking movers, with good volume and range on the stick from the previous session that is closing on its hod, it very often gaps up, sometimes a few to several percent! Occasionally, it really gaps up many percent and you do not even have to burn day trades if you have an account worth less than 25K!
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3 comments:
Thanks for the posts BigT. I visit your site every day. On your stockfetcher post, I just signed up to it and not knowing anything about it, can you let me know what filter you use to find EOD, HOD, running last 10 min priced between $1-$10 with no wick. Just so I have a starting basis?
Thanks!
I just use my normal penny scans for breakout stocks, available from their forums. You can tweak them for your own specification.
For example, something like:
show stocks where close gained more than 8 percent over the last one day
and price is between .10 and 5 average day range is above 3
and average volume(30) is above 250000
This one today returned a nearly workable play, GNOLF, but it was only strong the past 2 days, it has been recently down trending, so it is not really an ideal pick.
Some days you find zilch, and others a few to several at once.
I do not have, but assume a *tight* filter could be made to screen out upper shadows or to screen FOR stocks currently in the last 20 minutes or so closing on their highs, because an under 5 per share breakout screen usually returns like 20 or so that you can can visually see that have *some* that are "threatening" to close on their highs, etc.
Then, you bring those targets up in Quote Tracker or any detailed charting package, etc.
Using a 5 minute or less live chart, you follow it near the close and if it does peak out in the last couple minutes, you buy it, assuming it is a strong runner recently with good volume past day or so and big candlestick range.
Then you wait and hope, planning to exit at near open or a tad later when it climaxes. Naturally you could lose money, but the times the freebies return a few to several % overnight drown those out if you know what to look for, so you end up on top in the game.
Hope this helps, and please spread the word about my blog!
BigT:
Thanks for the quick reply! I got it and I will try your scan and play around with it from there.
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