Finding Stocks Before They Breakout

Finding Stocks Before They Breakout

The YouTube video at the bottom of the post is an old one but a good one and I believe that it will give you a few ideas on how you can swing-trade. I go through many stocks and show you how to look for swing trades, how to create scans and what to expect.

When it comes to swing-trading, I believe that stocks move in short-term bursts that might last 1-10 days, on average more like 5-days. If you go through many charts you will probably start to notice the same thing; many stocks run for 5-6 days and then digest the move by going sideways to down.  What I try to accomplish is to compound the first five days of a swing move as many times as possible, by getting involved on the first day of the move and selling on days 3,4,5,6, and so on. I want to do that as many times as possible; I want to get rid of the stocks that are slowing down on days 3-6 and want to roll that money to stocks that are just starting on day 1.

Contraction leads to expansion typically in the direction of the preceding move. The easiest way to find this is to look for a stock that has momentum, you wait for it to digest the recent move, as the stock starts to gear up for its second leg higher you will notice it will start to tighten up, now you want to wait for the first hint of expansion, so you jump aboard.

 

ZorTrades_Beta Daily set-ups, weekly portfolio, educational videos on how to scan, what to look for in swings, risk management, etc. 

By |2019-02-23T07:10:21-04:00February 23, 2019 7:09 am|

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