Hey Trader,

Today, I want to talk about a setup that I learned from a professional day trader. I call it a 30-minute entry setup.

It?s a simple method for taking low risk positions intraday in stocks that have the potential to move explosively and has opened higher than the previous day?s close or opened lower than the previous day?s close.

Using the trend reversal pattern that I wrote about in the last newsletter, let?s say for example that we spot a stock named ABC that has reversed sharply to the upside according to the setup rules for a sharp trend reversal like the one that was outlined in the last newsletter.

The following day we see ABC has gapped upwards, meaning that it?s opening price is higher than the previous day?s close. When a stock gaps up after a reversal pattern like this it typically means that this is a ?professional gap?. A professional gap is when the pros on the stock exchange floors are accumulating shares of a stock because it has suddenly become in huge demand so everybody is trying to hop aboard this train.

After these conditions are met, we step aside for approximately 30 minutes to make sure that this gap won?t close downwards. If it doesn?t, then we place a buy order over the high set thus far intraday and attempt to catch an explosive rally to the upside.

I know of traders that do nothing but trader these moves in the morning to make there living and then take the rest of the day off.

Take some time and examine this technique and see if it works for you and if it does then take the time necessary to master it.

Yours,

Billy W. www.stockoptionsystem.com

3828 West Davis Ste. 308-108 Conroe, TX 77304