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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