We are having great success with fading the early move. I am spending the first 20 minutes of each session (a great time to be on the sidelines anyway during this crazy early volatility) building a list of big selloffs on individual stocks.
We will then watch all the stocks on that compiled list for low risk setups that we teach. Some use 3 minute candles, some use 5 minute candles, and later in the day many stocks on this list will give very low risk trades using 15’s and 30’s.
The beauty of these setups is that they give crystal clear entry and stop prices. If a setup looks clean but offers a ‘wide’ stop, we simply pass on the trade. Patience and discipline can reward you nicely when trading.
We also have the benefit of about 200 chat room members (who have learned the setups that we teach) all scanning the market and posting ideas based on our teachings as they occur in real-time. Teamwork when trading is a rare commodity indeed. Hats off to all our members at http://www.greatstockpix.com!
