Here are three battle-tested stock earnings calendar strategies that have generated triple-digit annual returns for me in the past.
You’ll find a profitable post earnings announcement drift trading strategy in addition to a reliable earnings winner setup.
Any trader with basic technical analysis skills can immediately integrate these strategies into their trading repertoire and make money with little effort.
Post Earnings Continuation Breakout
This strategy is a basic support/resistance setup that I have used for both momentum-based day trading, and swing trading.
The concept is pretty simple: locate and buy momentum stocks as they break out over their earnings day range.
This is a great strategy for part-timers because you don’t need to be glued to your computer. Just scan for these setups every night and set a price alert in your trading platform.
Here is a visual representation, annotated with a few of my trade-signal indicators.
Post-Earnings Continuation Breakdown
This is the inverse of the previous strategy. Simply short the stock as it’s taking out earnings day support.
Because an earnings event is a catalyst for momentum, I like to short every time the stock consolidates and breaks down post-earnings.
This strategy works best on stocks that have huge losses on earnings day so I tend to set my screens at “Earnings Day % Change From Open < -10”.
Here’s an example:
Pre-Market Range Breakout
The pre-market range breakout strategy begins with a stock opening higher than the previous day’s close on earnings day.
These typically attract strong volume during the pre-market session, and in turn produce a sense of support and resistance. We can use this range as a guide once the market opens.
The key here is to buy early in the day as momentum pushes the price up over the pre-market high.
Using $CDMO as an example, I’ve drawn a line at the top of the pre-market range. I would use that as my entry point.
You can find a pre-build scan for this strategy in the AIR shop.