1/Price tells you WHERE a stock wants to go. Volume tells you WHETHER it can get there.
No volume = no conviction = bull trap.
Watch volume first. Always.
2/RVOL grades, rough hit rates:
🏆 3x+ → best odds, A-grade 🥈 1.5x–3x → tradeable ❌ Under 1.5x → gambling
1.5x is the FLOOR just to look. 3x+ closing in the top 20% of the candle is the target.
3/Before a breakout, you want the OPPOSITE of volume:
📉 Tight contraction (VCP) 📉 Volume drying up into the base 📉 Down days on LIGHTER volume than up days
Quiet price + quiet volume = coiled spring. That's accumulation.
4/The tell inside the base — Pocket Pivot:
An up day on volume bigger than any down day in the prior 10 sessions.
Institutions accumulating before the move. Spot it = positioned before the crowd.
5/Pre-market, 30 min before open:
✅ News / catalyst ✅ Gappers with RVOL ✅ Sector strength ✅ Orders ready
No pre-market RVOL = lower priority. The best trades announce themselves before the bell.
6/Breakout day — all four or pass:
1️⃣ Clears clean resistance 2️⃣ Wide bar, closes near the high 3️⃣ RVOL 1.5x min (3x+ = A) 4️⃣ One of the highest-volume days in months
Zanger: ≥50% over the 20-day vol avg. Qulla: clear expansion, acts right from the open.
7/EPs are a different animal.
Game-changing news on a neglected stock → gaps 10–30% and doesn't look back.
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