Objective & unbiased technical analysis by Brian Shannon

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CHASE THE GAP, OR WAIT FOR VWAP?

Posted on July 02, 2008

So you did your nightly research and found what look like some great potential movers for the next day of trading. The next morning you are anxious to take advantage of all the great setups but you look at your stocks and see that some of your strongest trading candidates are gapping higher. We ve all had this happen and the temptation to chase price higher can seduce even the most disciplined trader to lose his cool and pay up for the stock. Although there is always the exception to the rule, it is usually a suckers bet to purchase the stock as it gaps up. I m not a quantitative anal...

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analyst , lows , momentum , short term , trading