Trade simple setups
One of the easiest way to improve profit is by trading simple setups. Simple structural setups work best and easy to trade. Simple structural setup idea: Momentum burst. Stocks move in sharp burst of 3 to 5 days Simple structural setup idea: range contraction . Period of range contraction is followed by range expansion. So focus on range contraction in uptrending stock for low risk entry. Simple structural setup idea: earnings reaction. Stock react positively or negatively to earnings surprise. Focus on stock with big earnings surprise. Simple structural setup idea: stocks with momentum continue to move in direction of the momentum. Focus on top 25 to 100 stocks with 3 , 6, or 12 month momentum. Simple structural setup idea: buyer or seller exhaustion leads to turns. Look for buying exhaustion to short. Look for selling exhaustion to go long. Simple structural setup idea: stocks from technology , health care , and consumer discretionary sectors dominate biggest winners for any ti...