Frequently Asked Questions
Pocket Pivot Review / Buyable Gap Ups
What if a stock closes in the lower half of its trading range on a pocket pivot day?
Let's take YNDX as an example. The pocket pivot on 7/26/11 closed, even when including the gap up, in its lower half, on a day when the general market traded fairly tightly, as the NASDAQ Composite was only off -0.1%. Thus, if one bought a position, one could either sell their position by the market close or wait to see how it trades the next day, keeping stops tight.
Published: Jul 28 2011