Anticipating a breakout helps in getting very low risk entry. Anticipation setups on momentum stocks allow you to make lot of money trading and find opportunities daily.
As stock gain momentum they undergo periods of fast moves followed by periods of pullbacks and consolidation. The pullbacks and consolidation periods offer you an opportunity to anticipate a breakout and enter with very close stop or enter with order few cents above the consolidation.
To anticipate a breakout look at stocks currently not undergoing momentum burst. That means stock should not be going up or down fast. Stock should be in extremely low momentum phase for anticipation . It can be a shallow pullback or consolidation in established momentum phase.
To anticipate look for stock with extremely low volatility. During rallies stock go through high volatility and low volatility periods, the low volatility (quiet) periods are where anticipation traders can focus. A stock with low volatility in last 3 to 20 days is ideal candidate as part of a continuation setup.
Some of the good anticipation setups from today are:
If you are serious about making money trading develop a method to find these kind of setups daily.
3 comments:
Thank you for this post. How are you what scanner and criteria are you using to generate this list?
Tc2000. They are hand selected not from a scan
This is how I am practicing as well
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