The 3 things I learned on these trades. May have only profited $5 this morning but it was a great Ah Ha Learning morning! It finally clicked and looking back and studying the history there is consistently 3 types of morning spikes.
1. Spikes pre-market to the open then dips at open, fades and down trends all day and can spike or stair step the follow day.
2. Spikes pre-market and consolidates. Has confirmation of breakout at open, spiking at open into the open and then panics 5-10 min after open and down trends going red on the day sometimes going red/green in the afternoon into the close.
3. Spikes pre-market and consolidates, spiking into the open to retest high but then dips at the open. Holds newly established pre-market support, spiking 10-15 min after open and giving confirmation by breaking out above opening price, red/green morning spike.
A note on adapting to changes in the FGD pattern when stock spikes into close/ after hours trading and buying holding overnight, look to sell into strength of initial morning spike as most FGD go red after the morning spike. keep in mind to watch for which morning spike out of the 3 it becomes.