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Winning T > Opening Drive > Flashcards

Opening Drive Flashcards

1
Q

What percentage should a stock be gapping up or down to be considered for an opening drive trade

A

+/- 3%

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2
Q

If this is going to be a short play for the ORB, how should the after hours and premarket price action be behaving?

A

They should both be trending down.

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3
Q

How should the price be positioned in regards to key levels?

A

It should be below a key level or longer term technical level.

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4
Q

What major catalyst should be affecting a stock being considered for an ORB?

A

Unexpected news catalyst.

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5
Q

What aspect of volume should be affecting a stock that is being considered for an ORB play?

A

Elevated RVOL

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6
Q

If the street is not happy with an aquisition, or thinks the aquisition is risky how does this affect a stock?

A

Negatively, this can cause a major sell off.

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7
Q

How does high institutional ownership affect a stock with negative news?

A

Dramatically, institutions will need MULTIPLE DAYS to sell off their shares of stock, as their positions are Very Large.

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8
Q

Above what number is RVOL considered high?

A

3

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9
Q

What ETF indicates the key level of strength or weakness in the semiconductor sector

A

SMH

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10
Q

What other indicator should you check before trading a particular stock in a specific sector?

A

Other stocks in that sector, to see how they are behaving (strong or weak)

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11
Q

If you are trading a stock in the semi conductor sector to the down side and the SMH is in a strongly moving uptrend, what effect might this have on the stock you are trading?

A

It could cause a stock moving to the down side on negative news etc, to have a significant bounce, as influenced by the SMH.

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12
Q

What does a chart with no bounces and a long trending move to the downside represent?

A

A weak stock, there are no bounces, no buying is taking place in this trend.

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13
Q

If you are planning to trade a stock that you expect a big move from, where should you look for support or resistance

A

At the next KEY Support or Resistance Level, Visible on the Daily chart.

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14
Q

If a stock breaks a 30 min support level premarket a few minutes before the open, is this a potential entry? True or False?

A

True this can be a potential entry if all variables line up.

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15
Q

What is happening when the bid is dropping?

A

No buying / bidders. No support at this price point.

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16
Q

What does this candle represent in this specific situation?

A

When combined with the volume candle, it shows selling exhaustion

17
Q

In how many minutes is the ORB usually played out?

A

About 10 Minutes after the open

18
Q

What nature should an in play ORB show at the open?

A

Speed and Direction, pressure in a direction quickly, once that direction is chosen.

19
Q

How are risk levels often determined for an ORB

A

From premarket levels that were evaluated and drawn on the chart.

20
Q

Is a Psychological level a benefit when setting up risk

A

Yes Psychological levels can provide strength in a move, or strong support or resistance.

21
Q

What market indicators can you check to see whether your trade will be moving in the direction of the market or against it?

A

QQQ
SPY
VXX
$TICK

22
Q

Who are going to be the big players in an ORB move when the news warrants their attention?

A

Institutions will size into or out of stocks with news that affect the holdings / lack of holdings.

23
Q

What large factor can be assessed and shows whether or not news will affect institutional movement in a stock, immediately on release of the news.

A

Institutional holdings. If institutions hold a large amount of ownership in a stock, and that stock is affected especially by negative news, the institutions will have to sell over the next few days to relieve their positions.

24
Q

What is one place that psychological price levels often form?

A

At all time highs, these are often whole dollar amounts.

25
Q

What is the first thing you should be doing/considering when taking a high moment trade like an ORB?

A

MANAGING YOUR RISK!!!
Trying to get the BEST PRICE.

26
Q

What is a good indicator that you might be right in your thesis on an ORB, long?

A

When the price breaks above the Opening Range

27
Q

When the price breaks above the Opening Range on an ORB long, is this a good place to add shares?

A

True, if the tape is showing strong buyers, this is a place any shorts will need to get out, and big buyers are stepping in.

28
Q

Where and how should you make your entries in a volatile ORB move?

A

By BIDDING at LEVELS you expect the price to pull back to, on volatile price action/candles.

29
Q

When is a definite time to exit the last of your position on a stock that has been halting up continuously?

A

When the large stacked bids can no longer hold.

Winning T (8 decks)

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