Tuesday, May 22, 2007
Classical Day Trading of LUNA
This is a very classic day trading graph. Notice the following characteristics
1) Pre-market's volume is small. This is good because most of the buyer is not coming.
2) Entry point at $4.47 @ 9:33 AM EST. This stock breaks the screen criteria of volume>100K after market open. Check the news, bio company has positive result. The price is up. Buy in immediately.
3) Exit at the Fibonacci extension at $5.5.
4) Notice in 1 minute chart, the EMA5 never drop back under EMA 34 in the rising period
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