Powertrend stocks con't.
We want to play earnings blowout stocks
Look for
The angle of ascent---the pace---the velocity
Preferably more than 45 degrees---NOT a straight up spike but an angled ascent
With nice 5 10 20 emas headed up.
We want the stock to be riding that 5 ema
Use the 5 and 13 min charts (a 15 min chart will work if you don’t have 13)
These stocks will push up the upper bb
We want a steep uptrend on both time frames.
We want to see new highs each candle
We want to see the stock move right up to the pivots I post.
A pivot is a decision point---an area of resistance or support. A price where the stock will pause and then decide to go on up or retrace.
Each pivot is a decision point you can enter on any break higher. You can use the previous pivot as support. It can go back and retest the last pivot---it it braks that ---- your stop is there.
Remember---the stock surges to the pivot, then pauses to test it---if no buyers step in, then we retrace. The steeper it gets, the sooner it will find the top. We don’t want huge spike, just surges to the next pivot test then surge
We want new highs.
These methods are for the power trends so we use the pivots as entry/exit points and stops.
We expect new highs. We expect touches back to the 5 ema
The basic power move is over by the time the stock touches the 20 ema
These stocks use the 5ema for support.
Once in a while they will retrace down to the 10 ema after the momentum has waned
We want to play these stocks early if possible. In the first 1 to 1.5 hours when they have the most volume. Touch of the 5ema is a good entry. We do not want to see a candle close below that 5ema. If the other candles going up have been all green the 5 will be the leader—5 min chart---13 min chart will confirm.
This basic formation needs to be recognized—it tells you the stock is trending strongly. The big money is taking these stocks up, they are accumulating these winners, they are buying. There are large orders to buy.
We want to ride this trend up. You do not have to buy 1000 shares to play. It is moving up fast; you are scared; buy fewer shares.
[chart]tbn0.google.com/images?q=tbn:oEjtXaIYVuW66M:sugarmtnfa
