Trading bottom breakout stocks is relatively low risk and high
reward, and it's an effective way to "Buy low, sell high.".
We want to find stocks which show a "bottom out" pattern and are
likely to move up with good % gain in the short term. One of
the important technical signs we look for in these stocks, is
heavy accumulation in the low trading range. We also study chart
patterns, volume, trend lines, etc. to pick trading candidates.
Trading candidates should also meet the following criteria:
1. Active average daily volume_ ideally half a million shares or
more (lower price stocks need to have higher volume).
2. Have tight bid and ask spreads.
3. The Price move just started but not already moved too far away.
4. No BB stocks, because they are difficult to trade and more
risky.
Good charts for short sell are also welcome.
If you have the right candidates, please share.
Happy trading, |
