New Option TraderLearning how to be a successful option trader and blogging about it

Just attended a webinar on finding stocks that are primed to go ballistic.  Here are my notes:

1. Price is above the 10, 50, 200 day moving averages
2. Trade with the larger, longer term trend — moving averages help you do that
3. Look for short corrections in a longer term trend
4. Look at stock’s volume relative to its normal volume.  If it has 3 times it’s normal volume in the first hour of the day — it’s primed to move
5. Look for the three moving averages to meet at a point.  When moving averages start to separate and stock is above the 10 day, watch it very closely.  This is likely a reversal signal.
6. 3 day pivot numbers:      stock above = bullish,   stock below = bearish