This is the anatomy of a breakout trade.
First, you want to see a large advance in the stock. At a minimum, price should be at least 30% above its 52-week low. Stock will often be up several hundred percent before forming this pattern.
Next, you want to see a series of pullbacks - each with a shallower depth than the last. Mark Minervini refers to this as a...
C Wave of ABC pattern. Divergent. Dropping momentum. Dropping volume. Et cetera et cetera.
We are not in the business of getting every prediction right, no one ever does and that is not the aim of the game. The Fibonacci targets are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally...
