SPX & SPY have retained recent momentum
$S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ Scan the weekly charts of the top 10% 1, 3, and 6-month relative strength stocks within 25% of recent highs - 30-day highs, 60-day highs, 52-week highs. It doesn't matter - pick one. The point is that the stock has retained recent momentum. Don't obsess about it. You want stocks with trend, momentum, volatility, liquidity, and relative strength.
Image 2
Identify the pivot or breakout point where the stock would have to breakout of to trigger you into the trade. Typically, this will be highest points of the 3-5 day tight range you identified in the last setup. Using the model image, the pivot point is point 2.
Image 4
At a minimum, make sure that the group/sector you're trading is in an uptrend - 10 over 20EMA and both trending up on the group chart. Preferably, you want the major indices to be in an uptrend as well. $QQQ for tech and $SPY for consumer/stuff stocks. If these are in downtrends, the odds of anything you do working is much much lower. Your batting average will be pitiful, and most of your stocks won't follow through.
Image 1
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Great ariticle, would you like to share it?