Swing Trading using Anticipation Setups July 21 2015
The process I use to find anticipation candidates is simple and it just requires at best 5 to 10 minutes of effort after market close. Anyone motivated enough to find 8 to 20% moves in market can do this once they set up everything.
Anticipation setup looks for a stock with established momentum that is having a orderly momentum pause and series of low range days or in other words having volatility contraction. These kind of stocks breakout with force and make 8 to 20% move in 1 to 3 days after breakout.
ASPS and ANTH are examples of this from yesterday's list. Both were highlighted in this video I posted yesterday as possible breakout candidates.
ASPS made 8% move. ANTH made 16% move intraday before giving up bit of gains in last hour. Both are likely to have further gains.
One of the advantage of anticipation setup is it allows you to have very tight stop and as a result better risk reward trade. It also gives you control over your trade as you are not reacting to market breakouts and chasing things.
Anticipation setups work best on stocks with established momentum . These stocks can have several momentum bursts of 8 to 20% duration during their up move.
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