Trade Ideas Tooltip #3 Pre-Market High Alert Type Explained
Trade Ideas Tooltip #3 Pre-Market High Alert Type Explained
May 29, 2019
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This is a guest blog post from Alexander Voigt of daytradingz.com. Alexander’s been an active Trade Ideas subscriber since 2009.
Most traders trade stocks during the regular trading hours at the U.S. stock exchanges like NASDAQ and NYSE, between 9:30 AM EST and 4:00 PM EST. But trading is not limited to this time window only.
From 9:30 AM EST to 4:00 PM EST are the so-called “regular trading hours.” Many tools monitor the price movement during this time only. However, investors can also trade in the so-called pre-market.
The pre-market at NYSE, for example, starts at 6:30 AM EST and goes until 9:30 AM EST when the regular trading hours begin.
Reference: https://www.nyse.com/markets/hours-calendars
The trading volume (number of stocks traded) during the pre-market session is usually very low, and the low volume results in big spreads (the spread is the price difference between the BID and the ASK price).
Pre-Market Hours Benefits
Trading during the pre-market hours can be beneficial especially when the traded volume during pre-market hours is high.
This can be the case when a company came up with an earnings announcement or during a conference call.
More often than not, news catalysts like those lead to strong reactions in price and volume in the pre-market.
Spotting trade opportunities based on high traded volume or strong price movements is not that easy without the right tool.
Wouldn’t it be a clever attempt to scan the market for such conditions?
With Trade Ideas Pro A.I. this can be done in a very effective way.
Scan For Pre-Market Movers
In this article, you will learn how to set up Trade Ideas to appropriately scan for stocks with strong pre-market movement along high trading volume and a gap in 2 steps.
Step 1:
Open Trade Ideas
Step 2:
Chose “PREMARKET” in the channel bar (if the channel bar is hidden in your configuration, then click “New” and “Channel Bar” to unhide the Trade Ideas Channel Bar.
Now your Trade Ideas Layout should look like this:
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You can sort the pre-market movers for criteria like Gap%, Earnings-Date distance in days or even Float (shares) to identify low float stocks.
Additional Configuration Options
The pre-configured filters for the “Up-Gappers” scan are as follows:
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You can adjust those four filters or one of the other filters (Trade Ideas provides hundreds of combination possibilities) at your discretion.
Let me give you an example of a more specific scan. Let’s say that we like to find stocks with the following conditions:
- Price range of $5 to $20
- Gap >+10%
- Earnings-release: yesterday or today
- Volume today: >100,000 trades shares
Here is how your filter would look like:
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As a result, you have a manageable watchlist with just a few stocks matching exact your custom criteria.
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Tip: Market orders should be avoided outside the regular trading hours to avoid bad trade executions.
See Also:
Trade Ideas Tooltip – The 52-Week Low Alert Type Explained
Trade Ideas Tooltip – The 52-Week High Alert Type Explained
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