This blog isn't going to be super in depth. That's what my mini-course pdf, and soon to come out full course will be for. It's more so for those who might be skeptical, but also to drop some free sauce for you guys. So to summarize things, my favorite setup is to trade the top 1-2% of leading stocks in the market and wait for them to setup on a breakout.
This setup really only works in a bull market, so when things turn bearish like they are at the time of me writing this blog I just stay cash or trade my little scalping strategy for minor gains.
When the markets turn bullish, in order for me to find these stocks I use my custom stock scanners. They are coded by myself to find the top 1-2% high momentum stocks over 1 month, 3 month, and 6 month periods. I will build out a watchlist of the stocks that show up in these scanners and meet my certain criteria.
A good example of what this criteria looks like is the below screenshot of BBAI. The basics of it are I want to see a stock make a big move in the 30%-100%+ over a minimum of like 3-4 weeks. Then I want to see a clean pull back to the 10 or 20 SMA. Off the 10 or the 20 SMA, I want a clean base to be built with higher lows forming, and then essentially a tightening range to form. Throughout all of this, volume should be getting tigher as well until finally it gets so tight that price has to choose a direction. Once price breaks out to the upside, on high volume, I'll enter.
You can see it clearly on this chart, a clear defined range , that was getting tighter in price and volume. Then price ultimately had to choose a direction, and went to the upside on super high volume.
This is a perfect setup
I emplore you to check out the log I put together with 50 perfect breakout setups. You'll see many setups similar to this one, and all of these stocks showed up prior to breaking out in my custom scanners. You should also just go and look through a bunch of charts on stocks that have gone up historically 100s of %. I guarantee you that some variation of this setup will occur on all of them.
Stocks move in 1 way and they have moved this way for hundreds of years, ever since the markets opened, in a stairstep pattern. Every stock has its own personality and way of stairstepping, but every. single. one. stairsteps.
If you want to learn the nuances of this strategy, I get a bit more into the weeds of it in my mini course PDF. I also plan on putting together some more content relating to previous trades I've taken using this setup and even a video course that gets super in depth on this setup with a lot of real world examples of my trades.
