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Consolidation After High Volume Moves

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Moderator: EquityMonster83 Assistants: buywhenhurt
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Last Post: 4/2/2014 7:25:35 PM - Followers: 7 - Board type: Free - Posts Today: 0
Consolidation After  High Volume Moves

Mission Statement:
The goal of this board is to find stocks experiencing consolidation after high volume upward moves. This strategy makes it possible to get in a stock without chasing it, and also allows for the possibility of high percent moves. I can't take credit for discovering this method of trading, as I am sure a lot of people trade this strategy.  I personally first learned of this type of strategy from eliteG on thetechnicaltrader.net.  The examples below are actually prepared and posted by eliteG on the stockmanager.com.  

General Rules/Steps for the Setup:
These rules are as described by eliteG.


1.   Rises up heavily in price and volume.  Volume is the key.  It must stand out from past volume.  This rise can last one day..and I would say a max of 7 days.

2.   Falls back for  at least 2 days.  It is very important that you have at least 2 days of fall back according to my research.  Lots of fakeouts happen with just one day of fallback.  Volume is generally less than the volume rise in g1.  Also a rule I use is that the fall back should not penetrate the low of the low of the first candle in g1.  Its a mouthful but the idea is that if this stock showed a strong volume + price rise.. you do not want this stock going back to the levels this happened from.. you want to see support.

3.   Breakout and Run tends to happen if high volume comes back in to push the stock past the highest close(or open, whichever is higher) of the initial high volume move.  Just after the break of this spot on very high volume is imo the best entry.  Penny stocks tend to run 100%.  Higher priced stocks still run but not such a high % usually. 


Chart Examples:
The purpose of this portion of the board is to show examples of charts that exhibited high volume moves, followed by periods of consolidation, and then a large move upon the breakout of the previous high volume move.  By no means can these chart examples be considered standards for this chart setup, but it does show the potential of this setup.






 
PostSubject
#166  Sticky Note Consolidated Watch List Updated 6/5/2012 EquityMonster83 06/05/12 02:46:32 PM
#272   Pennies I am currently watching (W)and/or holding (H): buywhenhurt 04/02/14 07:25:34 PM
#271   MoneyWorksForMe - Still Likes This..! Lol MoneyWorksForMe 03/19/14 03:05:11 PM
#270   IPRU Daily Chart / Not Missing This TRIP! ;0) MoneyWorksForMe 03/13/14 01:55:44 PM
#269   i see you've done your homework here buywhenhurt, MoneyWorksForMe 03/13/14 08:54:28 AM
#268   Penny Stock picks: buywhenhurt 03/12/14 04:04:27 PM
#267   Really, your talking about the ST board by buywhenhurt 03/06/14 04:28:55 PM
#266   Nice board Buy. Reminds me of ST. tfusari 01/17/14 10:40:54 AM
#265   Sold APPY at the open at $2.79 today. buywhenhurt 01/17/14 10:18:54 AM
#264   WAVX had a nice breakout last week and buywhenhurt 01/17/14 10:16:56 AM
#263   MSTX was over $1.00 and pulled back, wow buywhenhurt 01/16/14 11:26:32 AM
#262   APPY New 52 week high and good volume today! buywhenhurt 01/16/14 11:25:17 AM
#261   RGDX - was alerted by Sheff's baord at buywhenhurt 01/10/14 02:39:54 PM
#260   ABIO, yup- pulling back here just under $2.00 buywhenhurt 01/10/14 02:36:50 PM
#259   STEM, wow this one has contined it's run buywhenhurt 01/10/14 02:34:14 PM
#258   ABIO Well, I never sold yesterday and we buywhenhurt 01/08/14 10:03:45 AM
#257   ABIO hit $1.88 today. Currently hitting resistance at buywhenhurt 01/07/14 10:19:40 AM
#256   MSTX, looking for suport in the $0.55 range buywhenhurt 01/06/14 03:37:18 PM
#255   MSTX Looking strong here. Good buying volume suporting buywhenhurt 01/03/14 10:54:21 AM
#254   ELTP - Would be nice to see a buywhenhurt 01/02/14 12:02:50 PM
#253   ABIO - Another new HOD at $1.79. I'm buywhenhurt 01/02/14 11:40:39 AM
#252   STEM - FYI, I am no longer watching buywhenhurt 12/31/13 10:06:28 AM
#251   ABIO hit a high of $1.74 this morning. buywhenhurt 12/31/13 09:59:13 AM
#250   CXM hit a high of $1.03 in Pre-Market buywhenhurt 12/31/13 09:55:03 AM
#249   CXM just hit a high of $0.82, very buywhenhurt 12/27/13 11:01:24 AM
#248   ABIO is interesting to me. I am watching buywhenhurt 12/27/13 10:47:49 AM
#247   MSTX is also looking well, the charts are buywhenhurt 12/27/13 10:44:54 AM
#246   CNDO is pulling back from recent highs. Looks buywhenhurt 12/27/13 10:41:51 AM
#245   CXM is showing life today. Not sure if buywhenhurt 12/27/13 10:39:47 AM
#244   Thanks for the welcome, appreciated. stonsetr 12/27/13 09:22:40 AM
#243   Remember the "January Effect." Many stocks may have buywhenhurt 12/26/13 10:37:32 PM
#242   Welcome stonetr, buywhenhurt 12/26/13 10:20:23 PM
#241   CXIA is a very speculative play. Zero volume buywhenhurt 12/26/13 10:09:26 PM
#240   Nice Board, marked. stonsetr 12/19/13 12:27:15 PM
#239   MELA - Some nice large (300K) block buys buywhenhurt 12/18/13 02:07:37 PM
#238   REMINDER - DON'T get greedy! I jumped into buywhenhurt 12/17/13 11:55:27 AM
#237   CNDO - NEWS Afterhours today! From $1.78 at buywhenhurt 12/12/13 07:23:43 PM
#236   CNDO and STEM are running again. buywhenhurt 12/09/13 02:30:21 PM
#235   Watching STEM for a break over $1.25. buywhenhurt 12/09/13 01:18:15 PM
#234   MELA - look for a break over $0.71 buywhenhurt 12/09/13 01:01:19 PM
#233   CNDO - watching for a breakout of this buywhenhurt 12/09/13 12:34:03 PM
#232   CXM, I like the high volume breakout and buywhenhurt 12/06/13 03:45:18 PM
#231   CXM - watching this one as well. Made buywhenhurt 12/05/13 12:11:04 PM
#230   Exited DNDN earlier for a small gain. Still buywhenhurt 12/05/13 12:09:19 PM
#229   Still holding DNDN for a little more of buywhenhurt 12/03/13 11:16:39 AM
#228   ETRM - Bought the open at 1.52 and buywhenhurt 12/03/13 09:49:09 AM
#227   Watching ETRM again, for another possible entry. It's buywhenhurt 12/02/13 01:25:01 PM
#226   Sold APPY at $1.93 from my $1.70's entry. buywhenhurt 12/02/13 01:20:23 PM
#225   DNDN and APPY - holding both after recent buywhenhurt 11/25/13 01:16:56 PM
#224   VICL is breaking out again. New HOD at buywhenhurt 10/23/13 10:44:51 AM
#223   MSTX and VICL update: both of them had buywhenhurt 10/22/13 11:11:46 AM
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