Here’s a PowerRatings Strategy for Daytrading

  • October 9, 2006
  • Darren Wong

Today’s

PowerRatings
article is going to cover an Advanced Daytrading PowerRatings strategy taught by Steve
Primo, TradingMarkets Director of Education. Steve teaches advanced PowerRatings
classes every week day (click
here for more info).

Daytrading with PowerRatings

Here are the Daytrading rules:

  • Buys: Stock has a PR of 7-10

  • Sells: Stock has a PR of 1-3

  • 5-minute Intra-Day Chart

  • Place Stop-Buy Above The Opening Gap-Up Bar

  • Place Stop-Sell Below The Opening Gap-Down Bar

  • Place Protective Stop Above/Below Opening Bar

  • Exit When Stock Travels Range Of Opening Bar

And here are some examples:


American Int’l Group gapped up on the open and proceeded to advance higher. 
A position was initiated at 66.47 upon breaking out of the opening 5-minute bar. 
Profits were taken when the move traveled the range (high to low) of the opening
bar. 


Williams Co. broke out of its opening bar and a position was taken at 24.00 with
a hard stop placed below the opening bar around 23.80.  The move proceeded
higher and after moving up a distance equal to that of the opening bar the
position was exited with a 0.16 gain.


Engelhard Corp. gapped lower and a short position was taken from the second bar. 
The price continued to consolidate within a very tight range before sellers
rushed in and price dropped hard.  This allowed us to take an 0.18 gain.

As these charts show, “Daytrading with PowerRatings” can be a very
powerful technique.  Focus on keeping hard stops to manage risk. 

Having a profit target is also useful, as it allows you to calculate risk/reward
ratios.

You can
attend a free
class on how to use

PowerRatings,
presented by Steve Primo, our Director of Education.

Click here to
try

PowerRatings for yourself, risk free.

Darren Wong

Associate Editor

darrenw@tradingmarkets.com



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Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding. Controlling risk through the use of protective stops is critical.