Second, it’s important to consider why a stock is moving in the premarket hours. When looking at a 5- or 10-minute chart, steer clear of stocks trading with choppy ticks rather than developed bars. Premarket moves that are likely to continue after market open often supported by 10% or more of normal volume. Or, check the average daily volume of the stock during normal market hours. You can identify stocks that are trading in the premarket with decent volume by looking at a moving average of their premarket volume. If a stock is up 10% in the morning, but with only a couple thousand shares being traded to produce that move, it’s unlikely that the upward move will be sustained once more people start trading. The problem with low volume is that it can send false signals. Premarket trading often happens on low volume because there simply aren’t that many traders active before the opening bell rings. There are a handful of things to look for when identifying premarket movers that are worth your attention at market open.įirst, volume is key. Not every stock that’s trading up or down in the premarket hours is poised for a trade. Many stock scanners have premade scans for premarket movers that you can use as a starting point for customization. You can look only for stocks with a certain market capitalization or within a specific industry, or scan for premarket movers above a combination of volume and price change thresholds. This is the preferred method for most day traders, since you have much more control. Typically, these services identify not only top 10 or 15 biggest gainers or losers of the premarket session, but also the stocks trading with the most volume ahead of the opening bell.Īlternatively, you can use your own stock scanner to look for premarket movers. There are a number of free options available, including MarketWatch, Benzinga, The Stock Market Watch, and Nasdaq. The easiest way to find premarket movers is to use a service that scans for them for you. In this article, we’ll cover how you can find premarket movers, the challenges that come with trading them, and some basic strategies you can use to profit off premarket gainers and losers. There are a number of ways to trade stocks that have seen price action before the opening bell. Typically, premarket movers are jumping in response to news or financial releases, so these stocks are likely to see a lot of action once the market opens. Premarket movers – stocks trading well above or below their previous day’s closing price or with a lot of volume before the market opens – provide a number of exciting opportunities for day traders.
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