Using momentum pause for anticipation | stockbee


Using momentum pause for anticipation

PAYX is one of the stocks I am watching for breakout anticipation currently. The stock has a momentum pause.

When stocks establish momentum, they do not keep going straight. They go up for few weeks or days and then there is momentum pause as buying pressure decreases. When this happens the stock spends time consolidating.

These kind of setups are trend continuation or momentum continuation setups. The momentum reasserts itself and you often get next up leg.

It is easy to identify these kind of setups and anticipate a breakout on them. Once you setup a process flow to identify them, you can daily find 5 to 10 candidates like these. to find them you just need to focus on stocks with established momentum

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