In a Bull Market, new stocks break out on high Volume every day. One of the challenges of a breakout trader is find the best BreakoutStocks to buy because they go up so fast that often it is hard to get a low-risk entry.
Volume is one of the simplest indicators in Technical Analysis but when used properly it is also one of the most powerful confirmatory indicators out there. It’s all the more important in the current market. In this thread, we’ll take a detailed look at volume with examples.
Many traders ask me how to trade volume breakout stocks profitably. Not all breakouts succeed in the Stock Market. So, how does one get into good breakout stocks? Here’s a thread explaining how I filter out good stocks with reference to RCF that I posted on Twitter on 23rd Nov 2022 (up 12%).
Fibonacci Retracements (or Fib Retracements) are an important tool in any trader’s arsenal. It is usually drawn by by using a Fibonacci Retracement tool (available in most TA software including Investar). When you drag the Fib Retracement tool from the latest swing high (or low) to the latest swing low (or high) as shown below, […]
Volatility Contraction Pattern is popularized by Mark Minervini, who is a two times US Investing Champion. Last year he won the championship with a record-beating 300+% in the year. He primarily uses VCP for his trading setups. It is a twist on the ascending triangle pattern with some variation.
In our previous blog post, we learnt how Price Action Strategy is one of the popular Swing Trading Strategies. We have already seen how to read price action, types of price action trading strategies (techniques) along with their benefits and drawbacks under Price Action Trading Strategies. Let us now deep-dive and see some profitable, and […]
Swing Trading is all about minimum risk, maximum profit, and that too, in short time. Sounds exciting, right? In this blog post, we will learn what exactly is Swing trading, the three key elements of Swing trading setup, and the popular Swing trading strategies.
A Rounding Bottom is a Bullish Classical Chart Pattern that is identified by a series of price movements that graphically form the shape of a “U”. A Rounding bottom is found at the end of extended downward trends and is typically used as a reversal pattern to indicate a bullish trend reversal when the breakout […]
What is a Symmetrical Triangle? A Symmetrical triangle is a Classical Pattern that occurs when a security’s price is consolidating in a way that generates two converging trendlines with similar slopes. If trendlines converge at different slopes they form a different chart pattern like a rising or falling wedge or an ascending or descending triangle.
What is Cup and Handle Pattern? Cup and Handle Pattern is a Classical Pattern which resembles a cup with handle, where the cup is in the shape of a ‘U’ or a rounding bottom and the handle is a price channel or triangle pattern drifting downward.
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