Rest of the time te boutiques near me might retract or go in range. However tracking news on daily basis might help you enter some of these momentum bursts very early and magnify your profit. It is essentially the use of historical market data to help analyze stocks and in turn make better trading decisions. Use standard writing style. In some case there might be a specific news catalyst on day of first range expansion day , but in vast majority of these kind of momentum moves, there is no clearly identifiable catalyst. For those with smaller account size there is distinct edge in trading low float stocks. Pring wrote that there is no known formula on which consistent and accurate forecasts of this type can be based. That one rule can make you millions and save you lot of heartburn. About us: Our Skyline Markets Review is one of the most straightforward strategies ever conceived for trading. Instead buy a high quality chocolate or one of your absolutely favorite treats and enjoy it slowly. You might have to buy lots of 50000 to 100000 shares for meaningful difference to your account.
A 30% move in stock over 3 months in a stock might be completed in 2 momentum bursts of 10 to 15% in just 5 to 6 days. stocks move in momentum bursts of 3 to 5 days. Range expansion basically means a day which is up bigger than last 5 to 10 days bars. A range expansion preceded by series of range contraction days is good candidate in this setup. Say a stock breaks out in the morning, it will continue to go up through the day and will have immediate follow through in next 2 to 3 days. During this 3 to 5 days period stock would go up 8 to 20% ( lower priced stock can even have bursts of up to 40%). Higher priced stocks above 40 tend to move in momentum bursts of 5 to 25 dollars. Volume was significantly higher than volume in preceding 8 to 10 days.