This setup can be used as a stand alone method, though I would recommend against that. I am always looking for combinations, the more things a stock has going for it, the less risk I am taking in buying it. I will now cover some of the key combinations you will want to look for. Any time a stock pulls down to an area of price support it is becoming a lower risk buy. This is especially true of an uptrending stock that has decline.
Minor support is defined as the general price area of the peak in the last rally.
The idea being the prior resistance will become new support. They also serve as good indicators of general areas of support and resistance. The stronger the stock, the lower the number on the moving average will be that it finds support on , and in general the higher the profit potential, so a stock finding support on the 10MA is better then one finding it on the 20 and so on. An inside range day is one in which that days range is completely inside of the last days price range. Breakouts from inside ranges, especially in the direction the prevailing trend make great buys.