Deep dive into the accumulation and breakout phase which is the start of a trending move in a stock.
What we are looking for here is a stock that has gone through a downturn and may be at interesting price supports. We are looking for price to make a capitulatory low, signs of a bottom and the 1st range boundary are:
- Far away from moving averages.
- Oversold on RSI on daily timeframe.
- High capitulation volume.
We let price bounce and form a 2nd range boundary and manage risk by looking for entries on a 3rd range boundary.