Stocks move in momentum bursts of 3 to 5 days .
In 3 to 5 days they can go up 8 to 40%
Lower priced stock make bigger moves
Lower capitalisation stocks tend to make bigger moves
Low float stocks tend to make bigger moves
High short interest stocks tend to make bigger moves
What tells you a momentum burst is starting
A range expansion signals start of momentum burst
Range expansion in simple terms is a day that is bigger than previous 3 to 5 days move.
A range expansion preceded by non momentum burst (where stocks was not up 8 to 40% in last 2 to 3 days prior to it) is good candidate.
How can one find these kind of days
By using any kind of range expansion scan.
4% breakout is one of the ways to find range expansion.
Dollar breakout is another way to find range expansion on higher priced stocks that move in 5 to 50 dollar move but may not have 4% b/o on first day of momentum burst.