AGY
These are the types of charts that I am on the look out for. The chart is characterised by an overall uptrend.
If you look at the chart you can see a prior move up, followed by a pull back and then an area of consolidation. Generally, the area of consolidation is an accumulation area by smart money, insto or simply large player in the market. You can see in that area the volumes dry up and price trades sideways. They stock then moves up again on increased volume and confirms the area as a "no supply" area. These are one of the best places to enter a stock that is trending up.
I have selected a particular candle in the chart - I guess it is a little bit of a hammer on higher volume, here the stock attempted to go down however bulls took back control and pushed the stock off the lows of the day. It shows lower price rejection.
I love sorting through the 52 week highs list. I know I am looking at stocks that can trend well. Remember, trends are just that - they generally CONTINUE on in the same direction and quite often more so than you think (they overshoot)
In conclusion, name of the game is to be buying stocks that are on the way up in price zones that offer the least risk (pull backs on light volume or consolidation/rest areas)
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