How to find big moves Part 2 | stockbee

1/18/2017

How to find big moves Part 2

Big moves need big catalyst. 
At the start of most big moves there is some kind of a catalyst. It is often a surprise to the market and that leads to start of big move.
AAOI a stock with recent earnings catalyst. The stock has a potential to make 30 to 50% move and possibly headed to 50.
SN had a huge volume breakout in last 3 days and is possible headed to 20.

Catalyst that can lead to big moves

Earnings growth
Sales growth
New orders
Shortages
Govt policy change
Sector
Valuation
Turnaround
Drug approval or rumor of approval
New product
New pricing power
Death of competition

If you are serious about making money and want to  find such stocks then you need to develop daily scan and method to find and trade them. 
One of the simples way you can scan for them in Telechart is using the following scan:
c/c1>1.04 and v>3*avgv50.1 and v>=100000

After that you have to study the catalyst on each of them. 

2 comments:

ANS said...

Hello Pradeep,

Can you please explain the formulas mentioned in the two posts in simple terms. What do they represent? I'm looking to mimic them via a free screener such as that on Finviz.

Thanks,

Pradeep Bonde said...

c= closing price
v= volume
avgc= moving average
minl= lowest low for given period

Finviz may not be able to do most of these scans.