Post by Victor VVV on Mar 2, 2020 21:09:37 GMT -5
Check-marks
1) 1st Burst of Unusual Volume
2) Sideways in Tight range
3) Unusual Volume
4) Stock price shoots up
interesting
"One thing that usually gives away an “accumulation” phase is when shares go up in pre
and post market hours only to return right back to the “boxed in” range every time."
and post market hours only to return right back to the “boxed in” range every time."
How Tight Ranges In Stocks With Heavy Volume Shows Accumulation
A stock that has unusual volume and move in a relatively tight range often points to accumulation
A stock that has unusual volume and move in a relatively tight range often points to accumulation
by investors. Stocks like this can go up dramatically in a few months time.
The key here is to first have unusual volume
The stock does not drop but move sideways in a tight range
When a stock move sideways in a tight range after unusual volume, it shows that the stock is being
The key here is to first have unusual volume
The stock does not drop but move sideways in a tight range
When a stock move sideways in a tight range after unusual volume, it shows that the stock is being
accumulated by the smart money. There will be a first burst of volume and then everything seems
to dry up.
There might be no heavy volume or wild price movement in a few weeks to a few months. And then
There might be no heavy volume or wild price movement in a few weeks to a few months. And then
all of a sudden, there will be a big shoot up in the stock accompanied by increasing volume. Finding
these kind of stocks takes a lot of patience but the huge move upwards can be very rewarding. This
is where 10 baggers can be found.
The Picture Of A Stock That Is Being Accumulated
A stock that is under accumulation display a certain type of pattern that is easy to see. You will be
able to spot the similarity in the stock charts below.
This is a picture of a stock that is under accumulation. Memorize it!
In the chart above, you can see CMA had an unusual volume in mid August. This stock moved sideways
in a trading range for a while. Then all of a sudden, the stock suddenly shoots up rapidly. While a stock
is trading sideways it is slowly being accumulated by the smart money. The first sign of accumulation is
a burst of unusual volume. Despite the burst of volume, the stock trades sideways.
Big institutions have their own way of not tipping their hand. They make sure the price does not go too
Big institutions have their own way of not tipping their hand. They make sure the price does not go too
high and neither will they let if fall too low. They want to accumulate the shares quietly. Occasionally you
see a slightly heavier than normal volume as the stock trades sideways. This is due to others in the
industry also jumping in. When the stock is ready to explode, trend traders and momentum trades also
jump in. As the stock rises, you will usually see many heavy volume days as these traders jump in.
In the chart above, you can see how BRKS had a first burst of volume in mid November. The stock
traded sideways and it had two days of unusual volume. Someone was secretly accumulating the
shares without wanting to move the price too much. Eventually the stock exploded higher.
In the chart above, you can see BSBR had some heavy volume in early March. Then, it traded
sideways and had a huge unusual volume. This showed us there were some smart money loading
on the stock into their account. You can see how this stock gradually grinded higher over the months.
Eventually the stock more than doubled in price.
In the chart of BZUN above, you can see the stock had many above average volume days as it traded
sideways. This pointed out to us that this stock was under accumulation. As the stock rose, there were
more and more unusual volume days which told us more people were piling into the stock.
Look how the stock tripled in price.
AAOI is another stock that showed great performance after an unusual volume occured in August. The stock
trade sideways awhile then gap higher on another unusual volume day. It gap up again in early September
on unusual volume and traded sideways again. This stock had all the signs of being accumulated by the
smart money. AAOI quadrupled in price!
KEM is another stock that rewarded the patient investor. The stock first showed a sign of being
accumulated when it had an unusual volume day in mid July. The stock traded higher and then
moved sideways for a few months. During these few months, the volume was very quiet.
That means there were not many people who were selling this stock. The smart money were holding
That means there were not many people who were selling this stock. The smart money were holding
the stock in anticipation of higher prices. Then in November, the stock started to run higher on heavy
volume. Trend and momentum traders were joining in the fun. The stock reach $11.00. An incredible
return by many standards!