Can algorithms predict gap-up stocks? I've been trying to find a systematic way to identify stocks that gap up in the morning and at first, it seemed like an impossible goal. Recently, I have identified a few key characteristic of gap-up stocks and the goal of this post is to test my theory. The hypothesis: 1) low float. It has to have less than 20M shares...
VTVT - New possible long here with a break above 3.07. A more aggressive trader could buy here at support. Stop signal 2.73
As we see in this daily chart, after a tightening Bollinger Band VTVT broke to the downside on the close of last week when the sector, and SPY was still providing strong tailwinds. That is what turned me bearish on this name as it moves into earnings on Feb 27. The setup shown on this daily chart makes it very clear. The 3 MAs; 5, 8, and 13 day are above as...