Putting the Hit & Run Pieces Together to Find A Stock Before A Potential Move

No matter what time frame you’re trading on, no matter if you’re day trading, swing trading or an investor, looking at the picture a stock gives on multiple time frames will put the odds in your favor of identifying a strong risk to reward entry.

For example, following a runup from 25.50 in February, hot IPO SDGR was a strongly trending biotech that pulled back after striking 99.50 on July 7.

Last week it traced out 3 consecutive lower weekly lows.

This turned its 3 Week Chart down.

The behavior of the 3 Week Chart is how I define the intermediate term trend.

Last week was the first turndown in SDGR’s trading history.

In so doing, it undercut the widely watched 50 day moving average.

This sets up a possible Flush of the Fifty long setup.

Drilling down to an hourly SDGR below shows yesterday the stock reclaimed its 50 HOUR m.a.

In so doing, it also triggered an hourly Rule of 4 Breakout.

This is a breakout over a 3 point trendline.

Following the push above its 50 hour, SDGR consolidated yesterday forming what looks like a 3 hour handle of a hourly Cup & Handle.

Putting the pieces together SDGR has a nice setup to follow through to the topside in coming hours/days.

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