PRTS, PSDV

Edit: Spotted PRTS when it broke out from a VCP break out 3 days ago.

This set up is an absolute beauty. I would rate this as a near perfect set up

Note the contraction in tightness from left to right.
Shakeouts within the base. 14 Jan and 24 March, shakeout within the low of the base and strong close.This weeds out weak investors and is also a good sign of accumulation.
Volume Expansion at breakout

PRTS is now up 20% from the line of least resistance in about 3 days.

PSDV had a breakout reversal. A tennis ball reaction back up would be good.

Revision:

Volatility Contraction Pattern or VCP is a term that Mark Minervini referred in his book as a constructive setup that stocks make before starting to rally, Basically a common characteristic of virtually all constuctive price structures is a contraction of volatility accompanied by specific areas in the base structure where volume contracts significantly. VCP is a signal that the stock is under accumulation. This happens because institutions start to accumulate shares in tight levels and the amount of supply coming to the market starts to reduce or calm down. It carves up a pivot point and the line of least resistance popularized by Jesse Livermore, when price moves past the pivot, it can move pretty quickly as supply is low.

10DMA

Hi guys, I have decided to start on a clean slate with the blog. Reason being, i have slightly modified my approach and method.

After studying past winners, I formulated an important selling rule. To sell the first close below the 10 Day Moving Average if a stock has not closed below the 10DMA for around 4 weeks.

“When a Superstock moves out of its current base to a new higher base, there’s a good chance that it will bounce higher off its 10 dma along the way”. IBSS

Stocks that adhere to the 10DMA for about 3-4 weeks almost always have a higher angle of attack than most stocks, subsequently breaking their 10DMA after 3-4 weeks. Due to their high angle of attack, some of these stocks tend to have deeper pullbacks when they consolidate. I have attached and annotated several stocks. By selling on the first close on the 10DMA, I am almost certainly able to lock in good gains in a short period of time and able to reenter the stock if it sets up nicely for a BLT entry near the magic line.

NPTN daily annotated NPTN weekly annotated