Stock Tiger 15-min gap rule examples   Friday gave us two gap ups that could not be played in the normal way without more risk so here we show again the 15-min gap rule in action for these two. On these charts the candles are 5-min each so it takes 3 candles for the first 15 minutes. During that time you do not buy but only watch. If the stock keeps gong from the get go then you do not trade it. You in your head or on the chart draw two lines. One at the high point of the first 3 candles and one at the low and make you trade in the direction of the break. Usually on a gap up on good news if it does break the lower line and you short it is more often a riskier trade and experience will help you decide on this so it best on gap ups to figure you will play it only long and only if it breaks above the top line. On the CPB chart there is also the 9-period EMA as it can often be of help in determining support areas. This stock broke above on the forth bar at about $41.40 and promptly pulled back under the bar. This is common as the "break out line" gets tested. In this case it only dropped a bit below the line and the 9-period also and in the next bar ran back up and gave $1 gain in 40 minutes. It never got much higher for the rest of the day. It is your decision how to play ones like this but one way is to treat them as an unplanned for gift so any profit is like free money. HURC was another that gapped up on Friday and if you were not holding and wished you were you can join in if the rule works out. Here you see (oops a mistake) the line should be on top of the 3rd candles' spike high around $40.75 as that would have been your buy on the 5th candle or 25 minutes into the day. From there it rallied to a high of $43.87 so a possible $3 gain. The idea of using this rule is it gives you a point of reference and the first 15 minute are often the most volatile as the players decide what to do. If you buy then you at least have some chart history going already and you can sell if it looks like it is not going to hold up. Paying attention to the volume is a good guide as you want to see high volume on the up times and lower on the down ones. Also on the chart I wanted to point our how the MACD and RSI can be helpful though they are not great timing indicators they do give early warnings. Notice how after 11 AM the MACD was already going down while the stock price was going up. That indicates that a high may be coming. The RSI reached its peak over the 70 level also a bit before the stock peaked. To lighten up on positions at those times is  a pretty good idea for short term trading. With the MACD giving such negative divergence then when the stock broke the 50-period EMA at about 3 PM it would have made a good place to sell any remaining shares if you were day trading this one. .