In this post I'm going to share some Price Action observations that can level up your trading game. 🚀
1) Whenever a stock breaks out on a monthly or weekly timeframe after years of resistance, the stock has the potential to deliver returns of more than 40% in the following weeks. In the chart below SASTASUNDR after a breakout from 10 year resistance gave more than 300% returns in 6 months.
2) Even in falling markets, when a stock consolidates it is a signal of strength, and it has a significant potential to make a huge move once the market has corrected.
3) If an industry sector and the overall market are both consolidating at the same time, and only a few stocks are attempting to break out, the likelihood of their failure increases dramatically.
4) When the market begins to rebound, the strongest stocks will generate higher returns and set new highs.
5) If a stock is accumulating or remaining close to its primary resistance or support, its chances of achieving BO/BD are significantly increased.
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