Gap Up Bounce Alert for Watchlist

قبل ١٢ ساعة

Profit is priority – Focus on taking profit regularly to minimize risk.
ENTRY:
1. Wait until 6:45 am for the first valid setup, may happen closer to 7:00 am.
2. The stock has to GO UP and then pull back
a. DO NOT TRADE when the 1st bar itself was RED and it came straight down, these are bound to fail and best way to play them is by SHORTING them, a different strategy. – LOOK at example 2 a
3. Enter on the pullback:
• After a confirmed pullback, when the price is either:
o Touching or bouncing off the 9 EMA/21 EMA.
o The stock has consolidated for a few candles, showing reduced selling pressure.
• Volume confirmation: Look for increasing volume on the bounce from the moving averages.
4. Position Add:
• If the stock continues moving in your direction after the first entry, add to your position immediately
• Or if price is moving slow, then add in next candle, if it is higher than prior one.
STOP LOSS:
1. Initially the SL is below the low of the pullback candle
2. After 1st exit, put SL at break even
3. Keep increasing the SL as it moves in your direction
4. Keep soft SL and not hard SL since it get’s taken (means you are doing it mentally and not actually putting the SL at that price)
EXIT: All about managing trade and protecting profits
1. Exit HALF position at:
• Whole number levels (e.g., $10).
• Resistance levels or when price consolidates at key levels.
• When the stock hits the low of the prior candle after an extended run (to lock in profits).

2. Next 1/4th position at:
• Goes too far away from MAs
• Next whole number
• Resistance level on Daily
3. Full Exit:
• If price breaks below a significant support level (like the 9 EMA or 21 EMA).
• MA cross happens to lower side
• If price breaks below prior candle low
Key Considerations:
• Risk management: Set a stop-loss slightly below the low of the pullback or moving average to limit downside.
• Maximize gains by scaling out on the way up and holding a small portion to capture extended runs.
• Do not exceed loss of more than $200-$300 after adding heavy.
This refined strategy integrates volume, moving averages, and time-based rules to optimize entries and exits.