DWAC provided three attractive risk-reward opportunities for day trading.
The first opportunity arose when a large candle formed on the one-minute chart, resulting in new daily highs. Buying at the indicated point could have yielded a potential 1.5% intraday gain in just nine minutes.
The second opportunity was even more profitable, with a larger candle forming and reaching new intraday highs while the stock was already up 5% for the day. Buying at the indicated point could have resulted in a potential 4.4% intraday gain in just seven minutes, provided that you sold when the exhaustion candle appeared.
The third opportunity involved shorting the stock when the exhaustion candle appeared, which could have resulted in a potential 1.8% intraday gain in just seven minutes.
How was it possible to predict that DWAC could have a big move today?
Although there were no apparent catalysts, DWAC has a history of making significant moves. The first opportunity was identified after receiving an alert of new highs in the Trade Ideas software, while the second and third opportunities were easier to spot if you had alerts of relatively large volume days or daily candles above previous days candles in a software like TC2000.
