Trading News
Mar. 1, 20233 min read

The pattern that played out a 107% gain

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Written by Tim Bohen

One of my intraday patterns played out so perfectly yesterday — it gave you the chance to catch up to 107% gains! 

But what’s even better is it gave you multiple chances to get an entry and catch a piece of the move. 

It was also a combination of another pattern I covered yesterday. 

So if you missed the last few newsletters where I’ve been breaking down some of my favorite patterns — catch up on Tuesday’s newsletter here and yesterday’s here

And read on to learn how you can recognize this pattern and see the multiple ways you can enter a position…

Three Ways to Trade CDIO

The VWAP hold high-of-day-break pattern is an intraday pattern that I like to look for every afternoon. 

Stocks that have the potential for this pattern have:

  • A big percent gain. 
  • News.
  • Ideally, it’s in a hot sector
  • And near 52-week highs.

This pattern can work on day one of a run. But it can also play out in multi-day runners. 

There are also variations of this pattern… 

Ideally, I like to see a morning spiker trend sideways above VWAP for the afternoon. Then around 2 p.m. or later, I like to see it break above the day’s high. 

But it can also play out in stocks where the price trades over and below VWAP… 

Yesterday, Cardio Diagnostics Holdings, Inc. (NASDAQ: CDIO) opened red but chopped around VWAP in the morning. 

Then in the late morning, it reclaimed VWAP and broke the high of the day after noon. 

The high of the day was also right around the previous day’s close of $3.45. This means this VWAP-hold high-of-day break pattern also aligned with a red-to-green move. 

CDIO chart: 1-day, 2-minute candle — courtesy of StocksToTrade.com

CDIO played out this pattern three times yesterday…

 If you missed the entry on the high of the day break, you can look for more entries if the stock holds its gains. 

After the initial high of the day break, it consolidated between $4 and $4.20…

It was holding above VWAP, then broke the high of the day again at $4.31 and went to $5.04. 

Then the stock consolidated again… 

And even when it dipped back down to $4.30 — it still held above VWAP. Then it broke the high of the day and made another $1 per share move to almost $6. 

It made another move after I grabbed that chart and it made a high of $7.15!

And if you took entries on any of those high-of-day breaks, you can use the lows of each consolidation area as your risk level. 

If you want to learn more about the VWAP hold, high-of-the-day break pattern — get my ebook. Or join StocksToTrade Advisory to get my ebook, three Market Update videos every week, and more! 

Have a great day everyone. See you back here tomorrow. 

Tim Bohen

Lead Trainer, StocksToTrade