FAQs Frequently Asked Questions
It seems many times as I'm scanning through stocks at the end of the day, many stocks end up not meeting pocket pivot criteria due to one seemly random high volume down day, whose down volume for that one day is far in excess of the average daily volume, with all other down days in the last two weeks having more "normal" volume levels. How do you handle these kinds of situations, where a pocket pivot could have occurred, if not for a single high volume down day distorting the volume patterns for the last two weeks? Do you use a purist approach and avoid the stock until a true pocket pivot occurred or would you still consider the situation?
It is best to use a purist approach and avoid the stock. In a good market, there will be more than a few buying opportunities. Buy the best, not only when it comes to fundamentals, but also technicals.
|First published:||7 Sep 2010|
|Last updated:||7 Sep 2010|