Premarket Range Break + 10:30 Confirmation Strategy

  • Clear Market Direction: By focusing on the premarket break and confirmation after 10:30, you’re identifying clear directional moves with higher probability.
  • Liquidity & Volume: Stocks that gap up are often driven by news, earnings, or significant events. These tend to have increased volume, which gives you a clearer signal to follow.
  • Scalability: This strategy can be adapted to different stocks or sectors and works well for intraday trading (scalping or day trading) with short-term price movements.
  • Avoiding Fakeouts: You wait for confirmation after initial volatility, which helps you avoid trading on false breakouts.

Example:

  • Premarket high = $102
  • 9:30 price = $101
  • Price breaks $102 at 9:45, holds above VWAP, consolidates
  • At 10:35, price breaks $103 (the 10:30 high)
  • :white_check_mark: Entry = $103.10 (on breakout)
  • :stop_sign: Stop = $102.40 (below VWAP)