PLUG is a good example of the momentum burst phenomenon in a stock.
Stocks when they move , move in momentum bursts of 3 to 5 days. This is very profitable trade if you can find such good setups daily and enter and exit them with proper risk management. There are more than 1000 opportunities like this in the market.
Many of these momentum bursts can be anticipated. Especially on stocks with high momentum. For that you need to have some way of identifying when a stock enters a momentum phase and also the strength of momentum. There are several ways to do that.
I use Trend Intensity (TI) to do that. Stocks with Trend Intensity above 1.19 are in high momentum phase. On these stocks if you can identify periods of consolidation and then anticipate a breakout you can get low risk entries and profit is high as you get to capture the first day gains.
If you see PLUG above it had that kind of setup. From that setup stock is up almost 30% in 2 days.
If you are serious about your trading and interested in making millions swing trading , perfect a setup like this.
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