Finding a trend early is a primary goal for many traders. Here s a technique developed for stocks that can work for any instrument with volume information, using a combination of mass index and money flow index. Everyone enjoys buying a stock just at the start of an explosive move up. For a number of years, I ve used a combination of Donald Dorsey s mass index and Brian Green s money flow index to identify conditions that improve the likelihood of finding a stock with the potential for rapid price appreciation. The earlier you get in on these breakout moves, the greater your chances for maximizing potential gains.
Big moves occur when a stock breaks out of a trading range and begins to trend.
Stocks trend higher when, over a defined period, they make a series of higher lows followed by higher highs. 5 year subscription to Working Money. Free book selection. Limited time offer. Offer ends soon.