One of my favorite kinds of bottoming patterns is developing on a bunch of different names.
See, while much of the market traded terribly over the past few months…
… a lot of names took the brunt of their damage earlier in the year and are knocking out longer term bases.
Now I don’t like buying the “obvious” breakout. By then you run the risk that the trade is too crowded.
Instead, I have been following a “sweet spot” that, once the stock clears, gives us the best odds of a strong push higher.
Here’s the setup:
1. You need the stock to have traded in a range and recently tagged the most recent resistance level
Stock Chart
2. Place an anchored VWAP (AVWAP) against those pivot highs
Stock Chart
3. Play the breakout the AVWAP
Your first target is the range high, where you’ll probably see some profit taking.
But now you’ve gotten in at a much better price than most, and you can afford more “wiggle room” while waiting for the big breakout higher.
This is what it’s like to have a Roadmap to the market instead of just blindly chasing after trades.
>>> Discover The Hidden Roadmap That Tells You Where Price Is Going Next
