NEO: A momentum burst setup example | stockbee

9/10/2014

NEO: A momentum burst setup example

NEO today is an example of momentum burst kind of setups I look for.  The stock had orderly pullback/consolidation after the first leg of rally. The stock had 2 less than 1% narrow range days prior to breakout. Had Trend Intensity above 1.05. this is the kind of setup that will show up in my anticipation scans.


Sometimes these kind of setup fail. As it happened in TEDU and CMCM recently. But that is part of the game. 57% of breakout setups are currently working for me with 2.03:1 risk reward ratio. So occasional failure does not affect me.

Doing homework to find these ahead of breakout using anticipation scans can help you get in to them early as they start to breakout. Anticipation has been my focus area for many months now and everyday I try and identify 10 to 20 good anticipation candidates.

To find setups like these before breakout scan for stocks up or down less than 1% and that have established trend.  These trend pauses offer good risk reward setup under good market conditions. 

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