▲ 4 r/pennystocks
My current trading strategy is making me profitable.
I trade penny stocks, mainly focusing on overnight gap plays. When I find stocks that base over several minutes and meet the SMA20, I often expect a drop like in the attached example. There is usually a Level 2 imbalance beforehand — for example, today’s stock had around 130k on the ASK side and only 5k on the BID side. I go short with 30´000 shares. Shortly after that, the stock dropped sharply.
My question is: Is there a way to screen NASDAQ stocks for these kinds of chart patterns (Intraday Penny Stock Base / Basing Pattern) in order to identify more trading opportunities like this?
Which stock screeners and/or scanner settings are useful for finding these setups?
u/Ecstatic_Wish3348 — 3 days ago