Leaders
What are leadership stocks?
- Double or Triple in a year
- Young and innovative companies (recent IPOs)
- Sector outperformer
- Liquid / high volume
- Under accumulation by funds
- Combination of price strength & theme / story
Leadership
What are the traits?
- Breaking out of Early Stage Bases (or IPO base)
- Respect for Key Moving Averages
- High volume Gap ups (Earnings, news) – spurs new FII/DII buying
- Pocket pivots
- Relative Strength during market correction
Patterns
Which patterns to look for?
- Early stage bases are best
- Prior uptrend before base
- Relative Strength while moving up on the right side
- Rectangle consolidation
- Cup and Handle
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