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Consolidation After High Volume Moves

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Moderator: EquityMonster83 Assistants: buywhenhurt
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Last Post: 1/23/2015 4:04:51 PM - Followers: 9 - 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
#298   AFPW great day +255% and good close. Very buywhenhurt 01/23/15 04:04:51 PM
#297   HBRM NEWS $0.0012 - Increased sales through Amazon! buywhenhurt 01/08/15 01:34:30 PM
#296   MSMY - Breakout Chart riskon 01/05/15 04:23:14 PM
#295   DIRV $0.0012 HMCP $0.0055 WDHR $0.0024 buywhenhurt 01/05/15 03:58:40 PM
#294   MSMY $0.0017 +70%, IGRW $0.0025 +4%, CSOC buywhenhurt 01/02/15 04:06:27 PM
#293   DIRV $0.0009 on HUGE 10X volume today. Looks buywhenhurt 12/31/14 04:20:20 PM
#292   I don't post here often (as you can buywhenhurt 12/31/14 04:13:06 PM
#291   Followed the board - looking forward to playing riskon 12/31/14 01:15:41 PM
#290   MSMY - NAKED SHORT SQUEEZE WATCH riskon 12/31/14 01:15:02 PM
#289   DIRV $0.0012 +50 on VOLUME Breakout! buywhenhurt 12/31/14 12:03:28 PM
#288   LLBO on watch list based on action over buywhenhurt 12/31/14 11:07:31 AM
#287   MSHY $0.0012! buywhenhurt 12/31/14 10:47:13 AM
#286   HMCP holding strong $0.006 buywhenhurt 12/31/14 10:46:24 AM
#285   TUNG $0.0019 NICE run buywhenhurt 12/31/14 10:32:14 AM
#284   TUNG $0.0014 at HOD with move volume hits buywhenhurt 12/30/14 03:54:00 PM
#283   HMCP $0.006 new HOD on boomin volume!!! New buywhenhurt 12/30/14 03:51:36 PM
#282   MSMY $0.001's gone, movin up again. Great breakout buywhenhurt 12/30/14 03:48:32 PM
#281   HMCP $0.0044, hit a high of $0.0054 this buywhenhurt 12/30/14 10:20:22 AM
#280   TXHE $0.0003, looking for volume buying to lift buywhenhurt 12/29/14 04:21:38 PM
#279   SAGD HOD $0.0006, watching for a break of buywhenhurt 12/29/14 03:21:41 PM
#278   HMCP & MSMY - 2 short term calls buywhenhurt 12/29/14 02:53:21 PM
#277   HMCP wow --> New HOD, 52 week high buywhenhurt 12/26/14 01:42:46 PM
#276   REDG $0.0018 +20 on 28 MM volume this morning. buywhenhurt 12/26/14 12:11:08 PM
#275   FRHV keep it on your radar. Closed at buywhenhurt 12/22/14 04:06:37 PM
#274   SNMN a strict lotto play. Could easily go buywhenhurt 06/03/14 01:34:42 PM
#273   GSAC had a great day! buywhenhurt 04/16/14 10:42:04 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
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