Frequently Asked Questions
Pocket Pivot Review / Buyable Gap Ups
If today's volume in a stock exceeds the previous 10 days and the price of the stock closes above the 10 day today, would this stock be considered a valid continuation Pocket Pivot?
If volume today exceeds the largest down volume day over the past 10 days, it would be a pocket pivot. The question is whether to buy as the quality of the pocket pivot must be determined. Some pocket pivots are of high enough quality to be considered even if the price does not close above the 10dma. It is contextual with the overall chart. Likewise, some stocks that close at or above their 10dma might be avoided. For example, a stock that goes straight down well below its 10dma, then straight back up its their 10dma might be avoided since this type of action can be failure prone.
Published: Sep 23 2010