Frequently Asked Questions

Pocket Pivot Review / Buyable Gap Ups
My question is on "double pocket pivots", that is to say multiple pocket pivots on a particular stock in a period of just a few days.

Q: My question is on "double pocket pivots", that is to say multiple pocket pivots on a particular stock in a period of just a few days. Statistically is there an increased probability of price appreciation, and/or increased percent of price appreciation in a "double pocket pivot" scenario.

 

A: Pocket pivots are contextual, like most things in the market. Multiple pocket pivots even if the stock has not made much price progress are a sign of strength if the market has been weak. It's a sign the stock is resilient. In a situation where the stock has moved higher then has another pocket pivot, this is typical of a stock acting well as leading stocks usually give multiple pocket pivots as they trend higher.


Published: Dec 8 2010