Tuesday, March 13, 2018

Winning VCP Breakout Patterns

SKY



RKDA

JASN
Found JASN Mar 1, 2018 with stockfetcher using my filter "New 55 Day High with 200% Vol ". I retraced it 50 days before that and it showed it had been running New 55 Days High too with 200% plus Volume Spike. The close of march 1, 2018 was 2.72. Now the price had risen to 3.13.
8 days later, JASN rose to 3.18 from 2.72. Had you entered at 2.75 with 1,000 shares that is now equivalent to $430.00.
As you can see during the 14mon VCP there were series of Stop Volume on the red candles. The red volumes were rising with candles showing smaller bodies and the last one was very prominent showing a rickshaw candle with very high volume. This is a reversal situation from down trend to upward trend.


NIHD. This stock came out so high on Feb 23, 2018 with New 55 day High surging with 200% Plus Volume compared to its normal volume of the past 30 days. There was not much news on this stock. In fact it was given an extension by NASDAQ to be compliant so in can continue to be listed. In order to be NASDAQ compliant stock should be trading around $1.00. And I think the surge of this new 55 days new high was to reach $1.00 for compliance. And if the rally gets positive support from the masses it can hit $2.00.

If you also observe the Volume surges. It had actually created a Focal Point marked with #1 and that volume continued to rise with a breakout in volume and in price until it reaches #3 which breakout #1 and #2 Volumes as well as the Price breaking previous high. A positive outlook. The odd is actually on the upside. Entry should have been at around $1.00 slightly  above the previous high. Investing it with just 300 shares would have gained $264.00 upon reaching $1.80 in 12 days.


ECYT


GERN. This stock showed up around March 19, 2018 with a breakout out at $4.00 mark having a volume of more than 200% than its usual volume. It was also a 55 day High breakout. based on Richard's turtle trading strategy breaking out at 55 day high we have to position right away on the 2nd day. The 2nd day showed a bearish move but followed the next day with a rally up to the 6th day reaching $6.00. That's a $2.00 move in the span of 3 days.
if you look at the history of this stock it had been trying to break out the $3.00 for so many times. It failed twice. First was after the 4month VCP(Volatility Contraction Pattern) period and after another 6moths VCP of which it formed a handle from a cup formation around 1.5months of volatility. Missing that entry did not actually mean it had exhausted the energy. After that 11.5months of waiting for a big breakout it finally reached the 55 days high with a huge volume. That was a call for an entry, especially of the gap up formation.



QHC. Similar candle pattern in a gap-up move accompanied with huge volume hitting the same high after volatility contraction. See 2 blue circles. This is a signal for a bullish move.
Looking closely on the 2 candles. the volume of the previous candle had actually been broken too. We marked the 1st candle as 1st pivot and the second gag-up candle as the 2nd pivot. Entering on the 2nd day after the 2nd pivot candle at around $6.70 and letting it run for 8 days and closing at $9.00 would have made a gain of $1,150 for 500 shares. Not bad for 8 days run.
How did we establish the $9.00 target? The target was based on the previous high and the previous Gap Down lower limit. 

CPST 4 Spikes of 200% Plus Shares of Volume

SENS 2nd Volume Spike after 4Tops Breakout





2 comments:

  1. It's very interesting, Thanks for sharing a valuable information to us & Knowledgeable also, keep on sharing like this.

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  2. Great Information! Its looking Nice.....

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