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5 Stocks Doubled In The Past 3 Months, What Did They Have?

Published 03/05/2017, 02:32 AM
Updated 07/09/2023, 06:31 AM

Here are five of the best-performing stocks for the past 3 months:

Achaogen Inc (NASDAQ:AKAO) +347%

Calithera Biosciences Inc (NASDAQ:CALA) +254%

Esperion Th (NASDAQ:ESPR) +196%

Tellurian Inc (NASDAQ:TELL) +189%

Applied Opt (NASDAQ:AAOI) +115%

What did they have in common?

  1. All of them started their move with a huge volume range expansion. We are talking a 8% price gain on at least 10X their average daily trading volume.
  2. All of them offered several secondary entry points – after their big range expansion, they had one or more periods of range contraction, followed by another range expansion.

Position traders look for big 50% to 200% multi-week moves. Swing traders look for hundreds of 5% to 20% short-term moves in a year – those moves typically last between one and 15 trading days.

If you are a position trader, you should be looking for huge volume range expansions in bull markets.

If you are a swing trader, you should be looking for range contractions in stocks with an already established price momentum; stocks that started their ascent with a big-volume breakout and kept going higher.

Some patterns tend to repeat over and over again but they don’t work all the time. Not working all the time is a prerequisite to being profitable over time. The trick is to know when they are more likely not to work.

AKAO Chart

CALA Chart

ESPR Chart

TELL Chart

AAOI Chart

I talk in more detail about the above-mentioned setups in my book

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