This is a trade I made today in JNPR. At 1:14 and 1:15pm the Price Spike Alert went off for JNPR on the Radar. At this point I was involved in a few other names so couldn’t follow it too closely, however once the extreme Price Spike (they are ranked) went off, I knew I had to focus on it.

At this point the price action was extremely fast, momo traders had a lot of money to make here. However as a young trader, I feel I am still not 100% comfortable being in these highly volatile momentum situations. But when a 36 dollar stock moves 2 points within a few minutes, I know I should be paying attention for opportunity.

I waited for price action to calm down and made the following trade.

1. 34.00 level has done a significant amount of volume and follows up with a large move away from the level, the stock is still volatile so I’m just observing

2.    Even more volume done at 34.00 after down move. Sprays above but cannot hold above 34.00. I             think there is definitely a trade to be made here, but I was still not comfortable getting long once it    cleared.

3 – 5. 34.00 continues to prove itself as an inflection point. Points 4 and 5 show JNPR can’t hold above 34.00. The last time it moves away from 34.00 (5), the down move is not as much as one would expect if the stock was still very weak.

6.    After only about a minute, JNPR is back near 34.00. My plan at this point is to pay for 1 lot as soon as 34.00 lifts, then add on confirmation.

7.    34.00 holds the bid, this is where I add lots 2 and 3. At this point my stop is 98c on 2 lots and holding below 34.00 (something like 91c) for my last lot.

8.    Sell 1 lot at 50c (first target)

9.    Next target is the high of the last move, 61c, then higher if it can hold (thinking 35.00). This is where I don’t want to have very high risk as my most probable target is only 10c away. I notice 50c holds the bid, so I make my stop on the last 2 lots at 48c where the trade ends.

This is just one example of how a trader can use the Radar. I personally didn’t want to make the momentum trade, however the Price Spike got you in and ready with plenty of time to make that trade. For me, it was a great way to find a stock that turned highly In Play intraday, without being on my watch list in the morning.

@tarhini_smb