We recently caught up with Teah as she shared with us her strategy of combining the BlackBoxStock alerts and chart studies to day trade 52-week high range breakout trades.
Trading 52 Week High Stock Alerts
Hey guys, this is Teah. I’ve been with BlackBoxStocks for almost four years and I wanted to share a fun fact about myself. I was the very first moderator on the BlackBox platform! So, let’s talk a little bit about my trading day and how I’ve come to utilize BlackBoxStocks.
My trading day starts around 9 a.m. Though, I almost never trade pre-market, the first thing I do is check the pre-market scanner. I like to find tickers traded under $50.00, and the ones that have the most volume in that price range, are the ones that generally go on my day trading watch list. BlackBox premarket scanner has actually made me pretty lazy, as I no longer do a nightly watch list because of it.
During the pre-market, I’ll check in both the main chat and my live chat room on BlackBox. As I’m clicking on my channel, I’m looking to see which stocks are being discussed most often and I add those to my possible scalp trades at open. Another thing I look for before starting my trading day is yesterday’s gainers. I simply do this by going to the top 10 gainers module on the bottom left hand of the platform, click on yesterday’s gainers, and take note of the tickers that moved the previous day for possible continuation plays. Right before open, I generally check to make sure all of my filters are set to my individual preference, within the charts and the alert stream. My charts have volume, EMA (exponential moving average), 7 and 12 for the alert. I also filter using 52-week high, 52-week low, stock price, stock halts and low floats. Next, I click set filters. After I’ve finished filtering out my specific parameters, I scroll down to see what’s in my price range and look to see if there’s anything I like.
One of the things that I absolutely love about BlackBox is being able to click on a ticker and have a stock and options news feed automatically open. Within the alert log, I can click on any ticker and the corresponding news will automatically populate for me. It will open everything that’s been said about that individual stock ticker. It’s a great tool to have when trading. The alert log and news feed essentially keeps me from having to go and do any research, because I can simply see the latest news and look at what other traders are saying in the chat.
Before I get into my trading strategy, I want you guys to understand how I trade and why I use what I use. The ‘VI’ is what I call the volatility indicator. Basically, what it does is measure price and momentum in real time. If the dollar is flat, that means the price is moving at a normal pace with and normal direction. When the dial is moving towards the red area, it’s more of a bearish movement or bearish price movement. Towards green just means bullish, of course. This is a great tool to have, personally, as it assists me in showing strength and price and it makes it easier for me to access risk and reward.
There are several ways to secure the bag using BlackBoxStocks. One of my favorite ways to get the bag, is trading in a retest of the 52-week high. What I do first is filter the alert log to isolate 52-week highs by volume and price. The 52-week high alert is when the ticker is at its highest price from 52 weeks ago. This strategy is based on stocks breaking above the 52-week high, after an initial break has been rejected. For this, I use an EMA combination of 7 and 12 EMA, as well as the daily chart because I like to see the whole picture. Every now and then, I’ll go out and change it to 5-minute or one-minute, but I like to mainly drown out the noise so I prefer the daily chart view. What I’m looking for next, is after the 52-week high break has been rejected, I want to see the 7 EMA cross above the 12 EMA for my entry.
Here, MNTA is a 52-week high play, and what I would be looking for initially, is a EMA cross. As it separates above, it lets me know that it is rejected and it’s going to pull back. But how it separates tells me if the pullback is going to be strong or weak, and I’ll typically look for weak pullbacks, which will give me continuation upward. This is exactly what I’m looking for. You can also see it here on the 5-minute chart. But at the 5-minute chart, it doesn’t even have it crossing. That’s Another reason why I don’t depend on the 5-minute chart.
That’s what determines whether we potentially take position or not. We look forward to the separation because the separation shows me if the pull back is weak or strong. And with that, I typically look for weak pull back so we can break above and make a new 52-week high. Also, this strategy is very useful when I’m trading multi-year breakouts. So, once the 52-week high is rejected, the retest comes, and it breaks above, we generally enter multi-year breakout area. When trading multiyear breakout, one of the key things to look at is the range that the price is trading in.
Normally, I’m studying these charts to make sure that what I think I see is actually there, because your eyes can be deceiving, and that’s another reason why I love BlackBoxStocks. Sometimes what I think I see; I’ll second-guess myself on. With BlackBox I can always go back to some of the experienced traders in the chat and get their insight to see what they’re thinking, or if we see the same thing. In all, that makes my trading day, so much easier – having seasoned traders that I can go and converse with and share market ideas and insight with. The main thing to take into consideration when creating your strategy on the BlackBox platform, is to make sure you create a set of static rules for when each alert comes in. There are so many different types of alerts, halt alerts, 52-week lows, dark pool trading, options scalping etc. You just have to make sure that you have a set of rules that you stick with in order to be successful.