You may or may not heard of pocket pivots. They first showed up in the book Trade Like An O’Neil Disciple: How We Made 18,000% in the Stock Market written by Gil Morales and Chris Kacher. They are an early buy point in a basing stock, giving the trader an opportunity to get into a position BEFORE a stock breaks out thereby helping you better manage the risk associated with breakouts.
Not sure what a base is? Check out the chart below. A base is simply a sideways range, where price trades back and forth between two price points, creating a horizontal box. Like this:
As I love trading breakouts, pocket pivots are a topic I am willing to spend time reviewing. I found these excellent webinars on Youtube that you may want to check out. This is a three part series…
