Hello everyone! I'm making a "Trading Grimorie" which will basically be my spell/niche journal so want help from the community to help me make it, so that i may make it I'm trying to develop my niche and it's looking like morning spikes on the long bias side. So would i like is for everyone to reply with what they have found to make the most successful morning spikes.
You can just submit anything i may be missing and even add your own revised input.
Low Float: In order to have a nice spike i see this as a MUST. The reason being is because I would prefer a big spike up selling into strength with low float stocks it's just not as strong of a spike.
Strong close on previous day: A strong close on the previous day or could just be up a significant amount on the previous day but strong close best scenario .
Significant Catalyst: This is a big contributor. I saw ITUS with there news about the cancer detection tech on the 2nd day, but had school. I predicted a spike to the 2.40s went way past that and when news really spread when as far as $5. Also spotted EKSO on the 1st day and I predicted that morning spike as well. MARA as well I spotted that on the day before it went to the 7s , attempted to buy on a dip of 3.40 which was the dip before the morning spike but got rejected because position was too big and all my money hadn't yet been cleared.
Pre-market Movement: This is honestly a difficult thing to determine b/c i've seen stocks with insane pre-market gains and out the gate have a small downtrend then a upturn into morning spike or just spike straight out the gate. However, i've seen other stocks with good pre-market gains but not real spike up maybe even a panic. This doesn't tend to happen when you have multiple morning spike contributors in your favor.
Big Volume in first few minutes/ Volume Ramping up: When a stock has huge volume out of the gate it can initiate the spike. However, this doesn't always occur then can be a small downtrend in the beginning then a spike up so must watch the momentum shifts.
No Overhead Resistance: No overhead resistance from the previous strong close leaves much room for stocks to run the next morning.
Gap Ups: Gap ups are naturally a sign of strength.
Also with morning spikes I want to look to sell into strength.
Please reply back with any experiences with morning spikes or indicators you think would contribute to a morning spike.
Thanks in advance!