FAQs Frequently Asked Questions

Though not an absolute requirement as it is contextual to the price/volume action within the stock, you generally want to see clusters of 5-day pocket pivots as this increases the likelihood of success. Thus if a stock has two or three 5-day pocket pivots within a period of several days or less, this would be a good example of a strong 5-day pocket pivot set-up.

That said, given price/volume context, you can have a 5-day pocket set-up on just one 5-day pocket. QTNA on 1-3-17 had a 5-day pocket pivot. Because volume had also been drying up the prior days, this constituted a volume-dry up period which was buyable and followed by a 5-day pocket pivot which was also buyable.

Keep in mind that just as with the 10-day pocket pivot, the price/volume structure should be constructive, and the stock should not be extended.