Stock analysis software –Anyone with just the smallest amount of stock trading experience knows it truly is impossible to predict exactly which stock outside of an already narrowed-down watch list is the one that blasts off in the next market rally.
Nevertheless, there are two simple, yet extremely useful ways of thestack the odds of finding the biggestgaining stocks in your favor.
Continue reading to get more info, including an example of the actual Wagner Daily investment trade that fits your criteria with thestock analyzer.
Relative Strength – A Trustworthy Basis
Relative strength may be the foundation of all the stock scanning, and is additionally the core of the strategy discussed within my ETF trading book.
Our version of Relative Durability (RS), not to be confused using the Relative Strength Index (RSI), ranks stocks that get outperformed 80% of all stocks already in the market over a 6 or even 12 month period.
- Once an elementarywatch list with high relative strength stocks continues to be created, the next step would be to narrow down the list by searching for top level weekly and monthly (long-term) investment chart patterns.
- You also need to look for bullish level patterns on those samemaps (high accumulation along with little distribution).
- After your report on the top swing trade candidates continues to be defined, the last step would be to rank the list through industry group relative toughness, quarterly earnings growth percentage (IBD is an excellent resource for this, in addition to group RS), and quality of chart pattern by utilizing multiple time frame analysis-stock analyzer.
Multiple Time Frame Analysis – Seeing This “Big Picture”
Multiple period analyzesare easy but often overlooked concept because many new traders target price patterns over a 3-4 week period with a typical daily chart interval.
However, one of the important thing tenets of thetechnicalstock analyzeris how the longer the base of support, the more powerful your eventual rally higher will be. You can also visit our top articles here for more information. As such, traders who ignore your longer-term weekly and official charts usually miss the most important factors of a bullish chart pattern essentially.
With that in mind, your scanning process needs to be focused on stocks that are either breaking out from the longer-term base OR have recently broken out of such a base and, therefore, are consolidating for once.
Generally speaking, the earlier you possibly can identify a low-risk entry point in a trend, better your chance of finding an explosive mover to carry for a super-sized achieve, especially when price action is confirmed by level, industry group relative toughness, and high quarterly revenue growth.
Omega Protein ($OME) – Going for Walks the Talk
With a share price gain of approx. 30% within just yesteryear six weeks, Omega Protein ($OME) can be a solid example of a stock that may be early in its trend and is also breaking out on a number of time frames.
However, using multiple period stocksanalyzed to assess your monthly chart below is actually what truly separates your chart of $OME via others, as we now begin to see the recent breakout to a new 52-week high was also a breakout to your fresh all-time high, and a breakout from a substantial 17-year long consolidation:
Using an unrealized gain of roughly 30% since the $18.85 entry into $OME, the model portfolio of the Wagner Daily newsletter is benefiting nicely with this stock with no expense resistance. You can also visit this link http://www.morpheustrading.com/blog/2-ways-explosive-stocks/ in the end for more knowledge. Nevertheless, we never forget in which carefully raising the protective stop in the process is the key for you to maximizing the gain, while minimizing the risk of giving back your profit. Get best stock analysis software.