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Consolidation After High Volume Moves

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Moderator: EquityMonster83 Assistants: buywhenhurt
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Last Post: 4/20/2015 12:32:00 PM - Followers: 14 - Board type: Free - Posts Today: 4
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
#427  Sticky Note Consolidated Watchlist 4-9-2015 EquityMonster83 04/09/15 04:22:54 PM
#305  Sticky Note Remember when you play the sub-pennies. Don't get buywhenhurt 02/06/15 04:08:16 PM
#460   R E V O - thank you, it's buywhenhurt 04/20/15 12:32:00 PM
#459   Nice call buywhenhurt. Up over 100% today EquityMonster83 04/20/15 12:28:37 PM
#458   TSTS at .51 from .23 breakout EquityMonster83 04/20/15 12:17:32 PM
#457   OWCP close to .27 breakout EquityMonster83 04/20/15 12:16:39 PM
#456   REVO news today and huge breakout to $0.0045 buywhenhurt 04/17/15 04:02:44 PM
#455   Long DMHI .002 (unfortunately, could have gotten so EquityMonster83 04/17/15 12:59:17 PM
#454   FINW breakout chart .0129 breakout EquityMonster83 04/17/15 12:01:04 PM
#453   FINW breakout of .0135 EquityMonster83 04/17/15 11:32:19 AM
#452   PMCB hit .26 from .16 breakout EquityMonster83 04/17/15 11:27:46 AM
#451   CE gone THCZ Brodster 04/16/15 10:28:21 PM
#450   MSMY holding at $0.0006 from recent breakout on buywhenhurt 04/16/15 12:26:09 PM
#449   GMAN breakout 8.67 EquityMonster83 04/15/15 12:53:25 PM
#448   TSTS hit .43 from .23 breakout EquityMonster83 04/15/15 10:35:07 AM
#447   AVXL hit .39 from .24 this morning. EquityMonster83 04/15/15 10:34:19 AM
#446   Trying some HDSI .0012. This one could go huge. EquityMonster83 04/15/15 10:30:42 AM
#445   HDSI breakout EquityMonster83 04/15/15 10:04:18 AM
#444   CLSN gap up breakout... EquityMonster83 04/15/15 10:02:14 AM
#443   AVXL hit .34 from .24 breakout. EquityMonster83 04/14/15 10:11:45 PM
#442   SGLB EquityMonster83 04/14/15 09:23:56 AM
#441   ORMP breakout of 8.00. EquityMonster83 04/13/15 03:21:29 PM
#440   TSTS .376 from .23 breakout. Boomage! EquityMonster83 04/13/15 11:15:25 AM
#439   SFOR boom! Hit .006 this morning from .003 breakout EquityMonster83 04/13/15 11:14:12 AM
#438   PMCB breaking out today 0.16 EquityMonster83 04/13/15 11:09:50 AM
#437   THCZ Brodster 04/13/15 05:58:05 AM
#436   $SFOR creating a nice candle will remaining oversold TheTradingNinja 04/10/15 10:33:24 AM
#435   SFOR breaking out today ~.003 EquityMonster83 04/10/15 10:32:06 AM
#434   TSTS hit .34 from .23 breakout. This one EquityMonster83 04/10/15 10:29:13 AM
#433   OVIT low volume breakout of .5061. EquityMonster83 04/10/15 10:27:29 AM
#432   MBVX 4.74 from ~2.70 breakout EquityMonster83 04/10/15 10:26:25 AM
#431   UAMM EquityMonster83 04/10/15 10:18:20 AM
#430   $DNNC .0003 TheTradingNinja 04/09/15 10:06:55 PM
#429   $SFOR .0021 TheTradingNinja 04/09/15 10:06:43 PM
#428   $SREH .0005 TheTradingNinja 04/09/15 10:06:27 PM
#427   Consolidated Watchlist 4-9-2015 EquityMonster83 04/09/15 04:22:54 PM
#426   FINW EquityMonster83 04/09/15 01:34:24 PM
#425   EVDR EquityMonster83 04/09/15 01:32:21 PM
#424   LIBE EquityMonster83 04/09/15 01:29:06 PM
#423   ALGA EquityMonster83 04/09/15 01:27:55 PM
#422   WSTI EquityMonster83 04/09/15 01:26:35 PM
#421   DRIO EquityMonster83 04/09/15 01:26:12 PM
#420   BABL EquityMonster83 04/09/15 01:23:24 PM
#419   DEWM EquityMonster83 04/09/15 01:21:41 PM
#418   LVVV EquityMonster83 04/09/15 01:21:21 PM
#417   DD with penny stocks is like promises from EquityMonster83 04/07/15 09:08:10 PM
#416   OSLH has tons more room to run. Do cjstocksup 04/07/15 03:04:35 PM
#415   DMHI broke out yesterday only to retreat today. EquityMonster83 04/07/15 03:03:15 PM
#414   OSLH boom! .078 to .13. Missed out on EquityMonster83 04/07/15 02:58:43 PM
#413   Agree 100%.. charts can be seen as a RavenTrader 04/06/15 10:34:27 PM
#412   I would imagine OXIS may start creeping back EquityMonster83 04/06/15 10:23:47 PM
#411   GBSN hit 5.45 from 3.90 breakout. EquityMonster83 04/06/15 10:14:13 PM
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