Trade Review HEAT: How to Play Rounded Bottoms

Video Trade Review for HEAT. this is a trade i entered today at 1.36.  This is one of my favorite setups “rounded bottoms” aka the booty bounce.  One of the many things i track in the market is stocks that have risen the most over the past 90 days and 30 days.  One of the things ive noticed recently was that the most powerful breakouts were coming from stocks that were very near its lows coming out of a rounded bottom.   Stocks such as FEED, VALV, KNDI, SCEI were all huge runners all coming off a very similiar look and pattern. Often people think of breakouts as just stocks moving to 52 week highs or flag patterns etc.  Breakouts come in many forms and this is one of the most powerful.

This trade was somewhat of a success as I sold my last shares at 1.61 for nearly 15% gain.  I normally would be very pleased with a trade like that but i made some critical errors that left a lot of money on the table as I sold right at a spot where a 2ndary breakout was about to happen.  Its so important to check stocks on multiple timeframes.   Overall I give myself B- on the trade maybe C+.

8 thoughts on “Trade Review HEAT: How to Play Rounded Bottoms”

  1. Quick impressive lesson on the setup. I watched this play out, but didn’t quite understand how the stock was noticed beforehand.Thanks Kunal

    Reply
  2. That’s a really nice setup. One of my favorite.
    Thanks, Kunal. Your review gives some kind of new level of understanding.

    Reply

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