Dan Zanger (Dano) Strategy¶
Overview¶
Chart pattern expert with focus on volume, institutional demand, timing entries near market close, and disciplined risk management.
Key Rules¶
No Pre-set Stops¶
Nuanced Approach
He never puts pre-set stops - he is more of a nuanced user.
- Never pre-calculates/sets automated stops (initially)
- Calculates Risk:Reward on IBKR
- Stop area = Area that invalidates the entry reason
Avoid Pre/Post Market¶
Trading Hours
He ideally avoids (almost never) pre or post market buys and sells.
The Zanger Buy¶
Entry Signal
The Zanger buy would be a move through the 50-day MA.
Scaling Out Strategy¶
| Stage | Action |
|---|---|
| At 1-1.5R | Take 20-50% off |
| After partial | Raise stop to breakeven |
| Remainder | Let ride on 9/21 MA |
Philosophy: Buy What's in Demand¶
Core Principle
"If you are here to learn from Dan - One lesson in that book is to buy what is in demand."
"Most people do that in the market - they look for a bargain."
"The best stocks make themselves very hard to catch. You have to fight to get in. Most stocks you have to fight to get out with the money you started with. So pick the ones that are making it hard to catch them - demand does that."
Recommended Reading¶
- How to Make Money in Stocks (William O'Neil)
Indicators Used¶
Volume at Price¶
Support & Resistance
Volume at Price indicator to find support and resistance zones.
The OSC (Oscillator)¶
Overbought/Oversold
The OSC tells you if the market is:
| Reading | Condition |
|---|---|
| Above +35 | Overbought |
| Below -35 | Oversold |
| Between | Neutral |
Special Stocks¶
VIRT
VIRT actually does well if market is struggling - inverse correlation.
Buying Near the Close¶
The Question¶
Why Buy Near Close?
"Dan it seems like you will often buy near the close. Is that to anticipate a continuation move the next session? Is end of session pricing a better representation of institutional demand?"
Dan's Answer: Yes¶
The Logic (GPT Explained)
The question is asking Dan why he often buys stocks or positions near the close of the trading session. The person asking wants to know if Dan buys late in the day to anticipate a continuation move in the next trading session.
They also ask if end of session pricing better reflects institutional demand - meaning whether large financial institutions, which typically trade in high volumes, influence the price more at the end of the trading day.
Dan's simple response, "yes," implies that:
- He buys near the close to anticipate a continuation move - he expects the trend to continue the next day
- End-of-day prices may better reflect institutional demand, as institutions tend to make large trades at the end of the session, giving a more accurate picture of where the market might head
In short: Dan buys near the close because he believes it reflects stronger institutional demand and expects the price movement to continue the next day.