SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Momentum Daytrading - Tricks of the Trade
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Ken Wolff who wrote (1729)12/26/1998 12:15:00 PM
From: Ken Wolff  Read Replies (2) of 2120
 
Selecting a momentum stock as an indicator is like watching the strongest fastest horse coming out of the gate first.

We can judge the condition of the track from him. As he gets tired, he may be overtaken by another stronger horse. When that happens, we switch horse by watching other momentum stocks as indicators.

Here is what I do everyday:

I arrange my list of "fresh" dumpers and gainers in groups on my level I quote screen. Then underneath these I put the list of 2nd day momentum stocks from yesterday. Once these are on my screen, I check the premarket volume of each of these. I weed out any low or no volume stocks. These stocks have little interest overnight so they probably won't be momentum players.

As the market opens, I glue to the blinking of the Last Price of the highest volume stock on my list. I compare the Last Price to the Bid and Ask. My expectation is to see profit-taking at the open because of the premarket gapping. I use it as indicator of how far the early pullbacks will go before buying hits. This is the first horse out of the gate and is our fastest and strongest player and should drop before the rest. This then becomes my first indicator stock.

I clue in on the indicator for selling by focusing on the Bid as it falls. It will continue to fall until we see a PAUSE. This is our clue that the direction is changing and will generally take place in the first hour after the open.

Happy Holidays Everyone!

Ken
www.mtrader.com
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News