This is my all-time favorite play, going long on stocks breaking to new 2-day highs or shorting stocks dropping to new 2-day lows.

Why do these work so well? Because these are the patterns that institutional buy/sell programs "kick in" on, piling in new trading volume, which is perfect for us.

Tip: best when entries are done before 11am EST, and on days where the NASDAQ composite is also outside of the prior day's high/low (or in the process of going there).

Here's a couple of examples from today:

http://www.TradingTalk.com/charts/2d...JC_29Feb08.gif



and a two-day low breakdown play:

http://www.TradingTalk.com/charts/2d...TI_29Feb08.gif



Anybody else trade these patterns? Got questions? Ask away.


to bigger winners, more often -

Ken