How to improve your momentum burst understanding

 

Do a daily mini Deep Dive.

I am interested in trading the most explosive moves for the week or month. By studying these daily, you know the nature of moves in 5-day time frames.

If you want a hold period of one month, do this Deep dive for one month, six months, or a year, depending on your objective.

Just do one thing daily without fail.

Study stocks that are up 20% for a week and up 100% for a year

Everything you need to make money, you will learn from that.

You need to understand the nature of stock moves and how they start, progress, and reverse. Doing this daily will give you a working model of what works in the current market. Then, you can start designing the scans to find them.

This study will help you develop "your understanding " of market moves. Once you have sufficient experience in this, you can start discounting a lot of conventional wisdom or market speak. Because you can see what the Guru is telling you on Twitter in the book or a blog, it differs from what actually happens in the market.

From the deep dive, What are your actionable learnings that can be used next week?

How can you do this

Run simple scans in Telechart

Study Bullish 20% c/c5>=1.2 and minv3.1>100000 and c>=5

Study Bearish 20% c/c5<.8 and minv3.1>100000 and c>=5

Study 20 Dollar plus Bullish c-c5>=20 and minv3.1>=100000

Study 20 Dollars plus bearish c5-c>=20 and minv3.1>=100000

Study Bullish 50% c/c40>=1.5 and c>=5 and minv3.1>=100000

Study Bearish 50% c/c40<=.5 and c>=5 and minv3.1>=100000

If you are trading low-priced stocks, you can eliminate the last condition of c>=5

Do this daily for 8 to 12 weeks, and you will be a better trader.