Momentum trading is one of the strategy mostly followed , but how to identify the stocks that are going to give bullish momentum..simply with volume.
Volume is one of the best indicator mostly ignored by lots of traders ,
But when to use the volume, can we use the volume indicator alone..? It is always better to use volume along with bullish candle stick patterns like consolidation break out and uptrend supporting the volume and cup and handle break out , Flag Break out , and some times you may seen some volume spike all of sudden in middle of no where it might be driven because of news and all don’t try to catch such type of stocks because stock might already ran up of news and some might try to book the profits.
Even though you are trading just because of volumes don’t forgot to keep stop loss in place.
And another strategy is to find the stocks which have opened with big gap up, some times news circulate after market , and if it very positive there are chances for some more run, but again keep stop loss in place.
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