Pradeep Bonde: How to Enter Episodic Pivots for Huge Gains

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 Learn Pradeep’s method designed to capture rapid stock moves by significant catalysts.

What is an Episodic Pivot and Why It Matters?

An Episodic Pivot (EP) is a powerful stock trading setup where a stock makes a significant move due to a fundamental catalyst like earnings, major news, or an industry shift. These events create high-momentum opportunities, but timing your entry is key to maximizing gains and managing risk.

Many traders assume that the best EP trades happen when a stock gaps up at the open. However, the strongest setups often have minimal gaps, as they offer better risk-reward ratios and reduce the chance of chasing inflated prices.

Let’s break down the best entry strategies for trading episodic pivots effectively.

Using an OPG (Opening Price Guarantee) Order

An Opening Price Guarantee (OPG) order, also known as a Market-on-Open order, lets traders buy an episodic pivot at its exact opening price, regardless of pre-market fluctuations.

How to Place an OPG Order:

• Submit the order before 9:28 AM EST to ensure execution.
• You cannot modify it after 9:28 AM so plan carefully.
• The stock will be purchased at the opening price, regardless of pre-market fluctuations.

Pros:

Cons:

Best Use Case:

Use OPG orders when you have strong confidence in a stock’s ability to gain 100-300% over time. This strategy works best for stocks with small or no gaps at the open, as they allow for controlled risk.

How The Delayed Entry Strategy Reduces Risk

Many stocks experience an early shakeout right after the open. Instead of buying immediately, waiting 30-90 seconds can help you avoid getting stopped out too soon.

How to Implement a Delayed Entry

• Observe the stock’s movement for 30-60 seconds after the open.
• If it dips and starts to recover, enter on the bounce.
• Use past earnings reactions to gauge whether shakeouts are common.

Best Use Case:
This method works best for stocks with a history of early shakeouts. It allows traders to avoid unnecessary losses and enter at a more strategic price.

Example:
TMDX had a history of early shakeouts before rallying. By studying its past reactions, traders could anticipate and enter after the dip for a better risk-reward setup.

Symbol: TMDX
Company: TransMedics Group
Date: May 1, 2024

Click on the chart above to make it bigger.

How to Trade Large-Cap Stocks with Delayed Reaction Entries

For large-cap stocks (market cap over $20 billion), the initial earnings reaction often fades before resuming an uptrend. A delayed entry after an episodic pivot allows traders to avoid buying at inflated prices and get in at a lower-risk level.

How to Implement a Delayed Entry

• Wait for the initial post-earnings gap to fade.
• Identify support levels where buyers consistently step in.
• Enter once the stock starts trending back up.

Best Use Case:
Use this method for slower-moving stocks where the earnings impact takes time to play out. Instead of chasing the first move, waiting allows for better risk control.

Example:
After earnings, GOOGL initially dipped before recovering and trending higher. Entering after the pullback provided a safer and more profitable entry.

Symbol: GOOG
Company: Alphabet
Date: May 1, 2024

Click on the chart above to make it bigger.

How Using Lower Time Frames Helps Pinpoint Entries

Some traders use 1-minute or 5-minute charts to fine-tune their entries, especially when day trading episodic pivot setups.

Common Intraday Entry Techniques:

• Shakeout Entry: Buy after an initial sell-off when the stock shows signs of recovery.
• Opening Range Breakout: Enter when the stock surpasses its opening range high on strong volume.
• Exhaustion Selling: Look for a sharp sell-off with high volume, followed by a quick bounce as buyers step in.

Best Use Case:
These methods are ideal for day traders looking to capitalize on short-term momentum rather than holding for multi-day moves.

Why Enter in the Pre-Market?

For large-cap stocks with high liquidity, entering as soon as earnings are released can provide the best possible price before the stock gaps up.

How to Trade Pre-Market EPs:

• Monitor earnings reports in real time.
• Enter with limit orders only (market orders are not available pre-market).
• Watch for signs of strength or weakness in price action.

Best Use Case:
This strategy works best for highly liquid large-cap stocks, not for smaller EP candidates.

Achieve Episodic Pivot Mastery 👇

Get instant access

 Learn Pradeep’s method designed to capture rapid stock moves by significant catalysts.

Key Takeaways for Swing Traders

• OPG Orders: Best for high conviction EP trades with minimal gap-ups.
• Delayed Entry: Helps avoid shakeouts by waiting 30-90 seconds.
• Delayed Reaction Entry: Works for large-cap stocks that fade before trending up.
• Intraday Entries: Best for day traders using 1-minute or 5-minute charts.
• Pre-Market Entry: Ideal for large-cap stocks with immediate earnings reactions.

Episodic pivots offer high-reward opportunities, but success depends on entry precision. Whether you’re using OPG orders, delayed entries, or intraday techniques, tailoring your approach to each stock’s behavior will maximize profitability.