Trading the "2nd surge" using near HOD scan.
Anyone who trades regularly sees obscure stocks rip for what seems like no reason. Stocks that have been more or less dormant for days on end make a strong surge and catch your attention. You've probably also been guilty of jumping in to catch the move only to find breakout was a headfake. We all have done it!
The brief move could happen for many reasons; perhaps the rip was met with heavy resistance from a lingering sell market order, low volume, or just a one time large block trade, that didn't garner anyone else's attention. Regardless of the reason, many have experienced this and have learned to be a more patient and wait on the sidelines for confirmation that the opportunity has strength.
How? In the form of a playing the "second surge". Whether due to traders just learning of move (perhaps from a slower tool or approach, social media, or news), the secondary surge is typically from the collective positioning of traders wanting to participate and their orders getting triggered as a result.
Near HOD/LOD Setting
This is where MOMO Pro's new Stream Mode functionality comes into play. With the default Stream mode setting you are being alerted to real-time last trade new daily highs and lows. The new Near HOD/LOD mode let's you see the second surge and prepare accordingly. Unlike when the default mode shows the latest highs and lows, Near HOD lets you see when a stock is within breakout range.
It works like this. Lets say a stock just had a run from $1.50 to $3.13. You notice this and see it had recent highs a week ago of $8.75. However, the stock has been beaten down with low volume and wondering if big buyer just playing games. You are interested, but now the stock has settled a bit to $2.80.
You move on with your trading but then 15 minutes later see that stock on MOMO Stream is printing $3.03 from the Near HOD notification. This gives you time to set charts, level 2 and get in position to capitalize on the 2nd Surge potentially to ride back up to highs a week prior.
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