1-Year Volatility Box + High RVOL Entry: A Rule-Bending Setup
If I can find a 1 year sideway consolidation box chart like this, I will bend my rules and take the idea on high RVOL entry at M15, ignoring the market context.
Look at $Lemonade, Inc.(LMND)$ 31st October 2024 post earnings release high RVOL entry below 60% LoD. It is incredible accumulation of shares if price bounce within 3 x ATR% of its volatility for a whole year. Overshoots are less than 4xATR% from 50-MA. LMND 1 year box range is extremely tight, considering its high ADR% and high short float %.
I wrote about stocks like this during my 2021 USIC and even shared the scan for such setup (u need to layer 2 separate finviz screen) There is a few common traits,
1) they have 30% short float or more
2) their ADR% exceeds 5%
3) they are trading at low float, but remains liquid
try building a scan from a structure like this
Image
if you deem you are trading similar to my approach but feel you are missing out alot by not having a position in equities ticker, it is because u are not trading liquid ETF like me.
My approach begins top down first. The most straight forward, higher win rate% and longest holding period idea comes from ETF trading for me. I will try to focus on higher ADR% ETF to reduce portfolio cash locked up in them if possible eg. $Direxion Daily S&P Biotech Bull 3x Shares(LABU)$ vs $iShares Biotechnology ETF(IBB)$ . $Direxion Daily Retail Bull 3X Shares(RETL)$ vs $SPDR S&P Retail ETF(XRT)$ . $Direxion Daily S&P 500 Bull 3X(SPXL)$ vs $SPDR S&P 500 ETF Trust(SPY)$ . $ProShares UltraPro QQQ(TQQQ)$ vs $Invesco QQQ(QQQ)$
Quallamaggie's favorite and most profitable ticker in 2019-2022 are dominated by leveraged ETFs symbol.
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