2/04/2020

How to find good anticipation setups

Anticipating a breakout gives you very low risk entries with tight stops. as a result you can have very good risk reward trade with minuscule risk. plus it allow you to plan the trade. Put orders in before market open or enter a day earlier itself.


APLS is a good example of this kind of setup. I found this on Friday and was in weekend newsletter. I enter these kind of setups in anticipation of breakout. Typically I enter just before market close ( in this case that is Friday). Next day when the stock breaks out then it is easy to make the stop low of day and move stop to protect profits by end of the day.  Often one day moves in these stocks itself can be several multiples of your risk.

In order to find anticipation setups , you need to first start with stocks with very high momentum that are consolidating near their high in a narrow range. I look for stocks up or down less than 1% and preferably up or down less than 40 cents.

Tighter the anticipation day better it is. Look at SPCE another of my trade from anticipation.


This stock on Friday when I found it near market close was just up 5 cents. This kind of setup then gives you very high risk reward trade.

In order to get maximum out of this setup, scan between 3.30 PM  to 3.50 PM and enter it in last 2 minutes. So when it breaks out next day you have very low risk entry.

Anticipation on high momentum stocks is regular money making setup and can be used by even working people. 

2 comments:

Chad said...

How do you protect yourself against the stock gapping down the next day if you enter during the last few minutes of the trading day?

Pradeep Bonde said...

over thousands of trades I have done it has happened very few times. But I have stops and position size based risk control.