$RZLV was added to my watch list on December 11th. It came up in one of my scans. It made a new 10-day high after the most recent 10-day low.
For swing trades, I am looking for strength to be long. I don’t bottom feed. I’m not looking to catch knives etc.
I want to buy things that are going up. Things that go up, have the tendancy to go up a lot more than anyone expects.
Our human nature is to first think “it’s gone up too much…it should pull back”.
But, if a stock is under accumulation, it will rarely give a good “EASY” entry. Easy, meaning, a “feel good” entry. If it’s hard to buy, that’s usually a good sign for me that I’m doing something right.
Seen here below, the stock has been in a down trend since it IPO’d. Then it bounced and made a new 10-day high.
Normally on a cheap stock, I won’t get too excited about it just yet. This happens a lot on very inexpensive stocks. They will pop hard, go a 100% or much more, and then proceed to sell it all off and then some.
This one was different.
It popped. Popped some more. Digested the move. Then popped some more.
I took this trade earlier this week and stopped out. It was a brutal day in the markets. But I was still stalking it.
Then today we were presented with a nice setup on the 15min chart as seen here:
The reason I liked it so much today was because the indexes were not bullish, but this stock was showing signs of holding up.
It may not hold up here, but the setup was there.
This is one of the highest probability trades. Don’t complicate things…keep it simple.
- Stock in uptrend. (However you want to define it…for me its…new 10-day high after most recent 10-day low. Then goes into my watch list.)
- Stock breaks down from support with Aggression Bar/s. Support is either horizontal or diagonal line…chart pattern etc.)
- Stock then fails the break down and reverses. Taking out the Aggression Bar, and then creating a new Aggression Bar, breaking out in the opposite direction.
- High Probability Trade.
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