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My exit guidelines for momentum burst swing trades

Momentum bursts are sharp impulse moves in stocks of 3 to 5 days . In 3 to 5 days stocks make 8 to 40% move . The following guidelines are for swing trading these kind of moves
  • Exit if a stop is  hit. Stop is low of the entry day or half the days range depending on where I enter. As far as possible I try and keep stop less than 4% and ideally less than 2%. On high priced stocks my stops are even closer.
  • Exit on 3rd or 5th day (for $ b/o) if stock does not move much post entry. This indicates momentum burst got aborted after one day move
  • Exit at least 50% of position on third or fifth day at close. 80% of trades would be 3 days hold. By third day the moment stocks goes up start protecting profit by moving stop 25 to 50 cents below the high. This needs to be done intraday as many big impulse move can fade quickly.
  • After your entry next day or same day if the stock goes up 8% or more exit 50% of the position and move stop 25 to 50  cents below the high of the day to protect profits.
  • Exit a stock in pre market or at open if it gaps up 20% or more after your entry next day or third day.
  • After 3rd day if you want to keep holding keep moving stop to low of day everyday after that.   

These exits work for swing trading only.

Breakout scans to make money

Posted on 7/26/2018
The breakout scans I use to make money. I run them from market open onwards.

4% bullish Breakout

c/c1>=1.04 and v>v1 and v>=100000

$ bullish breakout

c-o>=.90 and v>100000

Bullish Low threshold b/o

minv3.1>=100000 and c>=3 and avgc7/avgc65>=1.05
and c>o and c>c1 and c/c1>c1/c2 and c1/c2<1.02

4% bearish Breakout

c/c1<=.96 and v>v1 and v>=100000  

$ bearish breakout

o-c>=.90  and v>=100000 and minv3.1>=100000

Bearish Low threshold b/o

c1/c2>=.98 and c/c1<c1/c2 and c<c1  AND C<O and minv3.1>=300000 and c>19 and avgc7/avgc65<.95

Breakouts is one of the type of setup I use. Anticipation and first 30 minutes explosion are other setups I use.

Together these scans work for me and in first six month of 2018 made me 56% returns. There is nothing special about these scans , it is the execution and day to day process of using them that requires persistence. 

Study the year to date (YTD) winners

Posted on 7/03/2018

If you want to improve your trading , you have to constantly study market moves and then devise setups to find those kind of moves in next period.
In Telechart you can add a column YTD ( year to date) . It gives you % move from first trading day of the year.

Look up top 100 stocks or 200 stocks by YTD % gain.

What was the nature of those moves

What kind of scans will find them at beginning of the move

what kind of scans will find them within first 25 day of the move

what kind of scans will find them at midway stage

what kind of scans will find low risk entries in them

what kind of stops will work on them

and slice and dice those moves , you will learn a lot and be ready for next 6 months of moves.