Guide to Day Trading Strategies

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Chart of a several follow through days. This is when momentum continues over 
several days. A follow through day is when a candle breaks the previous days high.
Follow Through Days / Continuation
When I review the stocks gapping up each morning, I also take note of stocks that were 
extremely active in the previous trading day. Sometimes these stocks will have the potential to 
carry over momentum from the previous day. Multi-day runners are common among stocks 
that have released really good news and also have strong daily charts. The important price level 
to watch is the previous days high and low. I only trade when the prices make a fresh breakout 
versus the previous days high. Typically, the fresh breakout will bring in a new set of buyers and 

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R O S S C A M E R O N
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force short sellers to cover their open positions. For this reason, I keep follow through stocks on 
close watch for a potential breakout.
Chart of an inside day. The inside day was the small 
green candle after the large red candle.

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Inside Days
In contrast to follow through days where we look for continued momentum and a fresh breakout, an 
inside day is when a stock trades completely inside the previous days high and low. I avoid trading a 
stock on an inside day because there is no reason to expect signi
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cant momentum or price action. 
Inside days will often follow days of big volatility. Sometimes, stocks are able to break out over the 
previous days range and form a follow through, but until that happens, I stay on the sidelines.
A stock chart showing the power of breaking mid-day news