Vivos Therapeutics, Inc. (NASDAQ: VVOS) was up 175% in premarket yesterday. But I still made it my number-one watch for the day…
In penny stocks land, I don’t believe there’s such a thing as a stock being up too much.
That’s just something short sellers say to justify shorting a stock and guessing tops.
But that’s exactly what can cause these big explosive moves…
So today I’m sharing the two patterns that VVOS followed and the key levels you can use for entries the next time you see a box checker in premarket.
There’s been a ton of massive runners — almost one per day lately — so the next big play could be just around the corner…
Two Patterns to Look For In Day One Runners
This breakdown on VVOS is going to be similar to the breakdown I did for Biodexa Pharmaceuticals Plc (NASDAQ: BDRX) on Tuesday…
It’s all about checking the boxes before you trade.
VVOS had a lot of the same criteria BDRX did — a low float, news, cheap short locates, high volume, and it was a chat pump that survived.
It wasn’t hot sector news like diabetes, but the company’s press release said it received FDA clearance for its oral device to treat sleep apnea.
And just like cancer or diabetes, sleep apnea is a problem that affects a lot of people. That stirs up more emotions like hopes and dreams…
That’s what we want to trade.
So now that we see the boxes that VVOS checked for a trade, what was the pattern to look for?
On day one of a big move — I look for a morning dip and rip.
But since VVOS broke the first premarket high right before the open, I had to adapt my plan…
I had to wait and see what it was going to do. And once it pulled back and consolidated at the open, I used the Oracle level of $12.71 as a potential entry instead of the premarket high.
I sent my number one trade plan out a little later than usual since I had to wait and see what VVOS was going to do…
So my alert went out at 9:36 a.m. instead of premarket.
But that actually helped this trade idea work.
When my trade idea went out, VVOS was trading below the signal price. So it prevented subscribers from getting caught in the early fake-out move.
And after VVOS pulled back and consolidated, it lured in even more short sellers…
So when it made the move through my $12.71 entry price after the halt — it was explosive.
It had an almost straight-up move to $19.50!
Then after consolidating through midday, VVOS played out another one of our patterns — the VWAP hold high of day break.
After that move it made a high of $48.79!
VVOS chart: 1-day, 1-minute candle — courtesy of StocksToTrade.com
The dip and rip and the VWAP hold high of day break are two of the patterns we look for in big day-one runners.
Then if the stock closes near its highs, it’s a watch for a weak open red to green.
That’s the progression of patterns to focus on.
Cut out random trades and look for a strategy you can rinse and repeat.
You can learn all my patterns in my ebook. Get it as a free bonus when you join StocksToTrade Advisory today!
See you on the inside!
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade