My aim is to buy a stock when it shows the FIRST signs of a breakout with potential emotional force behind it.
My rules for buying are set out below. I have purposely left out the numbers.
A chart pattern that has formed a base for the previous least six months. It is OK if it has started a gentle uptrend. It is OK that the stock was in a dwontrend prior to forming the base. It is not acceptable if the stock has risen prior to the base. (I use my "sight" to determine if the chart is OK).
The closing price is at the high for the day or within **% of it's high. (My indication of strength.)
A ****fold increase in volume over the average of the previous five days.
A gain of better than **% from the previous days close. (look north of 20% for an indication of my figure, any less and you are wasting your time).
Turnover of at least $**,*** on the day. (Eliminates the transaction / s of a couple of thousand dollars. The method is to highlight a breakout that has force behind it).
JRV for instance did not qualify, but stocks including ADY and OEX did. Most are sold within a couple of days, the odd one kept.
Rip it apart folks! Please.