During my Pre-Market Prep sessions, I show you the setups for that day and how to trade them…
And after that, I take questions from my viewers about specific plays they’d like to pursue.
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You’ll get three other daily webinars, Oracle, trade alerts, and much more…
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On Thursday morning during Pre-Market Prep, a DIT member asked me about trading Ostin Technology Group (NASDAQ: OST).
At the time, I didn’t like it, and I said so.
Why?
OST’s float was low enough for a day trade: only 1.3 million shares…That’s perfect for a potential big runner…
Yes, I preach about float all the time, and yes, it matters a ton…
But never in isolation.
Despite its low float, OST lacked sufficient volume to be a smart trade.
Table of Contents
Volume, Volume, Volume
Price is always #1 when it comes to technicals…
But volume is a very close second.
It’s the easiest way to measure interest in a stock.
Think of it like a crowd…the more people piling in, the more likely something big is about to happen.
If everyone wants a piece of a stock (demand) and there’s a limited number of shares (supply), the price gets bid up.
Using the Chart
So, was I right about OST?
Yes, in pre-market. The volume wasn’t there.
But right before the market opened…
Boom! Volume!
Here’s the chart:
OST 2-Day, 5-Minute Candles Chart; SteadyTrade
As soon as the volume spiked, so did the stock price.
Not surprisingly, Oracle already had OST in its crosshairs. It gave us a green buy signal at $2.56 per share.
By the way, if you’re not familiar with our Oracle algorithm, it’s the tool I use every single day.
It does most of the heavy lifting by identifying potential big movers and then providing us with entry prices and stop-loss levels.
Within minutes of hitting the Oracle entry price, OST surged to a high of $2.87, returning 12.11%*…
Not bad for a stock that looked dead earlier.
See why volume matters?
It confirms that the stock is in play.
And mounting volume can create fast, aggressive, tradable momentum.
How to Find These Great Volume Setups
Inside the StocksToTrade platform, I run a simple scan every morning to find these plays.
A few clicks, and I can get a filtered list of stocks trading more than 100% of their average daily volume.
From there, I layer in:
- Float filters
- Percent change filters
- Catalysts (news, technical levels, etc.)
It’s that easy to pare my list down from 100 stocks down to maybe 5 real opportunities.
StocksToTrade comes with tons of pre-built scans, like the ones above, and you can also create your own.
It also features real-time data, charting, technical indicators, a paper trading environment, and more.
And right now, you can get two weeks of both the STT platform and our Breaking News Chat service for $17.
Grab your 14-day StocksToTrade + Breaking News Chat trial today for only $17
My Final Thoughts…
Volume is the fuel behind every big move.
And when you combine that volume with a low float, a catalyst, and a solid trade plan, that’s when the magic of day trading happens.
These are the setups that show up day after day, but you have to know how to spot them.
So stop chasing the hype and start focusing on stocks that are showing explosive volume and real momentum.
Looking for more training and mentorship like this?
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Have a great day, everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade