ATRA was brought to my attention by a friend in the room, Karolein. As much as I respect her for her incredible trading, when someone calls something out homework still needs to be done. First thing I did was look at the daily chart:
This looks good. It's pushed up to it's 200 ema and flagged. This morning it was gapping out of that flag perfectly. Now that we've confirmed a quality daily chart WITH RANGE, it's time to assure theres a catalyst and judge the float.
Pull it up on Marketwatch, see the float is 20m which isn't "amazing" but is still really small and good. Next, you check the headlines and see some awesome phase 3 data above. Great, now we have a low floater with a big news catalyst and a daily chart with potential. That's almost all of the categories of the perfect storm right there. So what's next? Now we need an entry.
Stick it on a one-minute chart.
As soon as the bell rings, you see BIG volume pushing up. That confirms another criteria of the perfect storm, high relative volume. I drew these circles and numbers to make a point:
Look at each move up and pullback.
Into the 1st push where does it pullback to? The left shoulder.
Into the 2nd push, a VOLUME BUMP and pulls back to the left shoulder again.
into the 3rd push, the same exact thing. You could've taken ANY of these flags.
I didn't see this until the third flag but then I hopped in at 18.80 with 200 shares looking for the move up toward 19.50. I sold instantly, I was only in the position for just over a minute long for a $119 profit after commission on a tiny 200 share position.
These breakout setups worked ONLY because this stock had all the criteria required for the perfect storm. It had a good daily chart with range, high relative volume, intraday chart patterns to enter off of, a news catalyst, and IT WAS AN ALREADY UP-TRENDING STOCK.
Hope this provides a little bit of insight on how I take my breakout setups, and a special shoutout to Karolein for the excellent find. I know she KILLED this one too so well done all around to anyone involved here.
Comments