Identify The Trade
$BSPM had a fast run on low volume from the $1.20's to the $3.40's which is over double. This happened in just a matter of minutes and its a pattern I'm very familiar with, so I was immediately interested in trading this stock.
Choose The Strategy
The strategy I used on this was based off of the gap the trading halt left in the stock chart and the high of day that was made after the trading halt. Basically, I wanted an entry nearby the gap price using a previous high as the risk level. In the ideal situation, the stock would fade in price for the rest of the day.
Execute The Trade
I got an entry near where I wanted, admittedly I was a little late to the party, an entry just 5 minutes earlier would have been preferable. Regardless, my risk level was tested and afterward, there was a sweet all day fade. My 3:1 Reward:Risk level was hit and this trade became a homerun.