PriceTeam

[ZoZoStockWatch]

Power Trend Stocks

It's a particular chart formation that tells you that this stock is in play and is trending up strongly. We are looking for stocks that have a reason to move an upgrade, news, blowout earnings these are stocks that offer more than just a quick scalp. we are looking for a trend day up for theseplays regardless what the futs are doing.

Power Trends work in both directions

U must pay attention to after hours earnings announcements. these will be in play the next day

We are looking for a special formation on the chart at the open At the open these plays are typically gapping up at the open because there is a lot of interest in them.

2 most important things we look for volume and velocity

volume tells you their is major interest in this stock
velocity tells you it is moving quickly in price

The chart gives you the velocity by the angle of ascent.

You must put a 5ema 10ema 20ema on each chart and bollinger bands 20ma and 2 sd.

we want a steep angle of ascent these plays are done off a 5min and 13min charts. We want a steep angle of ascent because it shows major urgency to own or sell a short play. Very important concept.

We do not want it straight up vertical Straight up is unsustainable too far too fast Not what we want.

These plays are gonna last all day typically not just a few minutes. Nothing can sustain straight up very long those moves are good only for scalps and u get nailed if you don't have good execution .

The purpose of playing these power trends is to make more than a scalp. You can play lighter shares with less risk and more net results.

For a power trend the 20ema is never flat or horizontal it must be rising steep better than 45 degrees usually this shows power in the stock At the open if the stock gaps p huge then it will be very far above its 5 10 20 emasWhat happens in this case It will form a flag

The stock will hover near the top of that first huge candle and wait for the ema's to catch up.
Or it will retrace slightly down to meet the emas movin up. Under these conditions we wait to see if the stck can take out the hod. Flags can occur on any time frame. I follow the 5min and 13 min for this.

We want the 5 and 13 min looking the same the same power formation steeep angle up using the 5ema for support. The 5min chart can move around more than the 13min so we look to the 13min for guidance. If the 13 min is not in power trend formation not good. We want the charts to look similar in regards to the 5 and 10ema support.