20 SMA SETUP

I have noticed this setup working very well over the past few weeks.

SETUP:  The setup is a morning washout, and a price base below the 20 SMA.  I wait for a 5 minute bar to close above the 20 SMA and enter on the next bar.  Important to have consolidation below the 20 SMA and to wait for the a close above the SMA with a 5 minute chart. The setup probability increases if the move is through a previous support or resistance level.  This strategy seems to work really well with the MOMO stocks.  As well, the bigger the washout, the bigger the move over the 20 SMA.

2 Trades today:

ENTR:  Entered a little late (5.75 vs. 5.73).  Still holding

ACHN:  Entry at 9.03.  Sold first half at 9.17 and raised stop to 9.16 after second breakout.  Stopped out last half at 9.17

Here are other examples of this working really well.