Go your own way: Trading off the open

摘要

The Waddell retracement strategy is built on the premise that the market tends to do the opposite of what the public believes it will do. With practice, money management and the right market conditions, this technique offers solid profits over a relatively short time. The equity market rarely acts how everyone expects and the Waddell retracement at the open is based on this concept. Moreover, it is viable regardless of overall current market trends. The setup isn't complicated. The goal is to identify stocks that are gapping up or down in the pre-market by about 30%. The greater the gap, the greater the potential for a stronger reversal.