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How to find stocks like CALA and enter them before breakout

Wednesday, March 1, 2017 14:47
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(Before It's News)

CALA was a stock I highlighted today morning before market open as
good anticipation setup. As you can see the stock is up 28% in a
day. Do you want to find stocks like these daily and enter before
they breakout?

Here is the entry trade on Tuesday afternoon before breakout on
CALA (800 shares bought for  9 USD in 50k account with end of
the day stop at 8.80 for a risk of $160 risk)

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width="500" />

I sold my CALA position by end of the day as it gave above normal
profit in just one day.

The following scans and steps details the method to find these kind
of stocks for those interested in making real money trading. The
scans are using Telechart software.
To anticipate a breakout
look at stocks currently not undergoing momentum
burst.

Stock
should be in extremely low momentum phase for anticipation .
It can
be a shallow pullback or consolidation in established momentum
phase.

To anticipate look for stock with extremely low
volatility

A
stock with low volatility in last 5 to 10 days is ideal candidate
as part of a continuation setup.
Look
for series of low range bars in last 5 to 10 days
Look
for stocks with bollinger band squeeze.

Avoid Anticipation setups on extended stocks

First
or second anticipation setup in established trend is best
Extended trends needs to be avoided for anticipation as failure is
high on them

Look for early entry on anticipation candidates

Anticipating a breakout helps you get an early entry and can
improve your per trade profits.
It
also can lower your risk as your stop is closer.
It can
help you profit from even smaller moves.
For
that entry without waiting for breakout is best.

Anticipation requires more pre planning and effort than
buying a breakout.

You
need a process flow to do that.
The
process should be efficient and done daily after the market
close.
The
suggested process flow is a template you can develop your own
process.

Only 3 to 5 quality ideas should be tracked

“A”
grade pre Momentum Burst setup should be your first priority
Once
you have list of anticipation setups narrow them down to 1 to 5 for
next day action.
Quality is more important than quantity

In order to find Bullish Anticipation setup use DT and TI
65 lists in Telechart
Double Trouble Scan

US
common stocks
c/minl252>=1.8 and minv3.1>=100000
Price
% change Today between 1 to -1%

TI65

US
Common stocks
avgc7/avgc65>1.05 and minv3.1>100000
Price
% change Today between 1 to -1%

MDT Above 1.19

US
Common stocks
c/avgc126>1.19 and minv3.1>100000
Price
% change Today between 1 to -1%

After running these three scan merge them together as some
stocks will be common.

Go
through the list to find setups that are setting up for possible
b/o

What to look for in good anticipation setup

series
of narrow range days in pullback/consolidation
orderly pullback with no 4% b/d during the pullback or
consolidation
low
volume pullback
low
volatility during pullback
linear
first leg if looking as continuation setup
Stock
should go up smoothly and not in volatile manner
3 to
10 days consolidation/pullback
not up
3 days in a row
This entire process once setup tales just 20 minutes
daily. 
You
can find 5 to 10 good set ups using this process daily. In good
market conditions these setups can make 8 to 20% in just few
days. 
So if
you are serious about making money swing trading setup these scans
and practice finding good setups.
You
can find your own stock picks daily once you master this method and
perfect it. It will help you develop your own trading skill
 and you will not have to depend on anyone. 

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Source: http://stockbee.blogspot.com/2017/03/how-to-find-stocks-like-cala-and-enter.html

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