Stage 1: Technical analysis, we start by scanning for stock patterns breaking out on huge volume, these stocks are analyzed for both momentum and market conviction.
Stage 2: Fundamental Analysis, after passing Stage 1 a stock is analyzed for its fundamental criteria (to increase our chances of success by aligning the breakouts with a fundamental sound reason). We analyze earning reports, earning estimates, earning estimates revision, recent news, and EPS analysis of this quarter vs last year's quarter.
Stage 3: Volume Analysis, we take a deeper look at footprint charts and analyze the quantity of shares traded on the bid vs shares traded on the ask at each price levels. Volume precedes price, so we look for patterns within patterns
Stage 4: Market Profile, after analyzing price and volume we analyze the last remaining variable, [time]. Market profile charts exposes the true nature of the stock market as an auction, by looking at market profile charts we can look for more auction patterns to make sure we are making a truly well rounded trade decision. Click here to know more about #stocks to buy today.
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