Don't ignore the hunch. Here's why (at least for this instance).
Looking at the homework the day before, we can see a failed drop ending up at the resistance level of the stock for the past week. Here's where some price memory comes into play where people who wanted to buy the stock at that price weren't able to.
That creates the resistance level to some extent, and that's what I'm counting on for today's trade - a boost in volume brought about by the buy-up from resistance. The Force Index was on my side, and all looks to be well.
The day opened lower, but the volume was still quite extensive so I decided to queue for a buy a cent above the lowest for the day because that's where all the action seems to happen.
Once the buy was in hand, the exit plan was to take the range and then drop it by one cent again coz it was a down day and I wanted to play safe.
Lucky!
The Breakdown:
Noble Group
Opening Price: $1.92 (-$0.02)
Previous Volume: 13,300 (VPH: 2,046)
Closing Price: $1.91 ($-0.01)
Closing Volume: 27,231 (VPH: 4,189)
Price Acquired: $1.91 (Bought)
Lots Acquired: 10
Price Sold: $1.94
Transaction Cost: $107.80 ($53.48 + $54.32)
The Gain: $192.20 (+$0.03)
The Score So Far: -$2,962.70
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