This Is One Way To Trade HOD (High Of Day) Stocks
Shortly after 10:03 A.M.
in our chatroom, one of the long-time members posted SWIR (Sierra Wireless) was
hitting an intraday high. How can you use this information
effectively instead of just jump in the market and buy the stock? Let’s look at
two charts.
As posted in the chatroom, SWIR, on the 3-minute chart, broke out of a
bull flag and recorded a new high of the day on strong volume. If you were a
breakout trader, you might consider buying the issue immediately. Needless to
say, you should not forget to place a tight stop to protect your trading
capital.
On the other hand, if you were a pullback trader, you could have utilized the
1-minute chart to look for the next entry point. The blue line is the 15-period
SMA, and it works as a support level. At 10:13, SWIR formed a bullish
tail, and at 10:14 the stochastics signaled a buy.
Have a nice day!