Opening Movers — How to read the open in 30 seconds

Hi, this is Sundeep Gupta from lifelongedge.com. I'm going to share the columns I use to select opening movers for day trading. I look at three things, gaps, frog moves, both hybrid and absolute moves, and where the symbol is in terms of red, green, yellow zones.

Let's take a look at gaps. I have the gap Z column and I can sort using that column. It tells me the Z score of the symbol relative to its 200 days and note that it doesn't tell me whether it gapped up or down.

I have a second column called gappers, where a label gap up or gap down will show up when there is a gap and sorting by gap Z tells me which symbols are in play and I will usually pick the top one or two symbol from my symbol list for short listing and trading for the day. If there's nothing in my active watch list that has gapped, I will switch my watch list to TC 2000s built in either the Dow 30, the SP 500 or the high cap 1000 and every day there are many symbols that have gapped and I will pick the ones that I am familiar with. The second thing I look for is the frog risk box moves.

I'm looking at the hybrid frog move or the frog box move to tell me which symbol is making a directional move. Early in the open the first few minutes the hybrid frog move is a good column because if you're running it on a real time scan it will tell you which symbol has made a big enough move and the logic here is that if the symbol has made a big enough move then it is in play. If later on during the day I want to get a sense for what is moving, I will sort using my absolute frog move column and that is good because I can get a list of both long and short that have made the most move and then the next two columns the frog up and the frog down tell me what is the direction of the move.

Finally I look at the daily zones which as you can recall from Dr. Ken Long the zone definition is green zone is if the symbol is trading above yesterday's high and red zone is if it's trading below yesterday's low otherwise it's considered a yellow zone also known as an inside bar where the price is contained within yesterday's range. I don't trade yellow zones very well so I have the column to tell me a symbol is in a yellow zone and also if it's not in a yellow zone then I want to know whether price is relatively the open so the less than open of the day is something I used to scan for symbols that may be potential shorts if they are not in the yellow zone and then there are other columns there about which tell you whether the breakout over yesterday's high, breakout over yesterday's low whether it opened in the yellow zone as opposed to whether it is now in the yellow zone.

So overall using gaps using the frog movers and the zone I am set for finding movers for the day.