Below are the weekly charts for the eight stocks I studied, each with the primary bases during the 500% move circled on the chart.
Note that these stocks typically have two or more bases on the weekly chart during the move. If you are looking for a method to make 50% and pyramid into a stock, these are likely good places to pyramid into a position.
Look at several things in the bases:
- How far does the stock pull back from recent highs in its base. Prefer that stock stay near recent highs in its consolidation.
- How long is the base?
- Is there volume dry up in the base?
- What is the typical price action within the base (i.e. tight ranges or choppy action, or typical patterns)?
BH,
ReplyDeleteChart_Wise here. How do you find stocks that are neglected on Telchart?
Jonas