How to use momentum burst to find buying opportunities | stockbee

2/07/2017

How to use momentum burst to find buying opportunities

Stocks go through periods of momentum and periods of chop or non trending periods. As a swing trader focusing on the momentum periods helps you participate in fast part of the move. It reduces your risk and allows you to sit out non trending period.

Here are examples of some of the recent trades like these:

AKAO made 42% move in just 11 days


CALA made a move of 50% in six days


HQY made 20% move in 7 days



How does one find stocks like these? For that you need to setup scans to find stocks with momentum that are entering a news swing  move.

Here is one of the stocks showing up in the scan yesterday early in firsr few hours of market open. The stock post entry went on to make further gains.


Stocks like these show up in scans once you take an effort to setup a well thought out scanning and trading regime.

Here are some of the stocks showing up yesterday in scans:

Bullish Breakouts
TSLA
GLBS
WB
LOB
PVG
CNAT
SALT
KRNT
BVN
GORO
MUX
CGIX
IAG
GPL
EGO

Bearish Breakouts

ATW
CLR
HNI

If you want to make money trading first step you should take is to setup a process to find explosive stock moves daily. Look for processes which will make you independent trader and not dependent on picks.

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