The patterns to look for after day one spikes

This is why I love multi-day runners…

Good Morning! Today I'm continuing the topic of patterns to look for after a stock has a big day-one spike…    Yesterday I used ContraFect Corporation (NASDAQ: CFRX) as an example and noted if you miss a big premarket move, you can always watch for a dip and rip after the open.   Another pattern you can look for on day one is the VWAP hold high-of-day break pattern.  If you missed yesterday's newsletter — read it here to catch up.    Whether or not you see any patterns in a day one spiker, you can still watch it over the next few days…   Because if you see either of the patterns I'm sharing today, it could mean you have a multi-day runner — and those are some of my favorite stocks to trade.    This is the process that we repeat as stocks pop up on news and as they play out over the following days.    Dilution killed CFRX, but there's always another stock to watch…    Here's an example of what to look for on day two or three of a stock's run… Patterns to Look For in Multi-Day Runners Once a stock spikes on news and holds up — then we can look for follow-up patterns…    Like the weak open red-to-green move and the day three surge.    Let's look at Ambrx Biopharma Inc. (NYSE: AMAM) as a recent example of a multi-day runner...    The stock spiked on February 16 after the company announced data from its phase one trial.    On day one it had a similar move to CFRX on Monday… Although AMAM didn't spike in premarket, it spiked right at the open and didn't pull back for a secondary entry.    And like CFRX, it didn't have a dip and rip or a VWAP hold in the afternoon on day one. But the next day it did have the next pattern we look for…  A red-to-green move. AMAM chart: 2-day, 2-minute candle — courtesy of StocksToTrade.com A red-to-green move is when a stock opens below the previous day's close. Then it reverses and breaks back above it.    You can see how anyone who shorted AMAM after the big spike was comfortable in their position — until it made the red-to-green move.    The move indicates a trend change. And as shorts start to buy to cover it sends the stock higher.    And when the stock closes near its highs, we can look for the next pattern…  The day three surge.  AMAM chart: 3-day, 2-minute candle — courtesy of StocksToTrade.com The day three surge is when the stock breaks above the day one high and continues higher.     And after you get that move, you can repeat the process and look for the same patterns over and over again…    After the last day on the chart above, AMAM consolidated for a day and then made another break higher.    It was a day five surge over the day three high… AMAM chart: 3-day, 2-minute candle — courtesy of StocksToTrade.com This is why we focus on the same repeating patterns.    The key to capitalizing on them is to wait for them and not get blown up trying to trade random moves when a stock isn't doing anything.    If you can master your patience, discipline, and mindset, you can give yourself the edge you need to perform at a high level.    If you want some help spotting opportunities in the market — sign up to get my Market Update videos three times a week.    You'll also get my monthly report, an exclusive weekly watchlist, and a copy of my 10 Pattern ebook so you can see which patterns I focus on and watch the process repeat.    Have a great day everyone. See you back here tomorrow.    Tim Bohen Lead Trainer, StocksToTrade sponsored Want Daily Trade Ideas From Millionaire Traders? Whether you're a rookie in the markets or a seasoned trader – these strategy sessions are perfect for ANY trader who wants to gain a MASSIVE edge in today's uncertain market…   And take advantage of the obscure "profit windows" Tim Sykes has been targeting!   Don't miss out on the next session!   >> Click here to sign up for daily alerts and start maximizing your profits with the Millionaire Trader's Formula << sponsored The Trading Tool That Gives You An Edge In The Market… StocksToTrade's Breaking News Chat alerts major catalysts right as they're happening,  allowing you the chance to get in on the action.  Try It Out For 2-Weeks Today! Recommended Membership Gifts ACCESS NOW: Click to activate these complimentary membership gifts and receive daily market intel. To The Moon Report Weekly Stock & Crypto Watchlist Mark Croock Evolved Trader Daily   Click Here to Unsubscribe   (As an Amazon Associate, we earn from qualifying purchases.)   13809 Research Boulevard, Suite 500, Austin, TX 78750   *Please note that these kinds of trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade, and individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.   This is for informational purposes only as StocksToTrade is not registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund.   StocksToTrade cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing.   StocksToTrade in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, StocksToTrade accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.   Copyright © StocksToTrade.com