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Knock
Down
The Knock Down Scan is very similar to
the Usual Suspects Scan. This scan filters the entire
market searching for stocks that are moving down and are
on pace to trade higher than their average daily volume. I
use this scan to see which stocks are moving. I try to
detect the stocks early enough in the day. The ultimate
candidate is a stock that breaks down after consolidation
on relatively high volume.
We take short positions for stock which
are showing weakness but are not oversold. The
ultimate setup for a short position is for a stock that is
breaking down for the FIRST day.
Intermediate and advanced traders may
use this scan to find potential LONG trades. Such
setups take place with stocks which are extremely oversold
and are setting up an intraday reversal pattern.
Please refer to the book, How to take money from Wall
Street, or to the Stock Trading Course for examples of how
to use this strategy. |
