Do you know where a stock might be headed next?
A lot of traders like to play guessing games — they assume stocks have to go higher because they want them to…
The truth is nobody knows which way a stock will go.
But there’s one thing we can look at that can give us a better idea…
This is what I do to find important levels for my entries…
I’m sharing it with you so you can find levels that can spark 65%+ moves just like I did.
I hope you caught a piece of this trade idea that I spoon-fed you on my weekly watchlist — for FREE!
The Key Level That Sparked a 65%+ Move
Knowing important levels on a chart is technical analysis 101.
There are key support and resistance levels, but also indicators like the previous day’s close and VWAP.
All of them can impact how a stock will move…
A stock will either reverse direction at those levels, or it can break through them and signal more momentum in the same direction.
On Friday when I looked at the Rail Vision Ltd. (NASDAQ: RVSN) chart, I knew which level would be important for it to go higher…
It’s a stock that was on a multi-day run, it has a low float, and it has traded in insane volume since the start of its run.
RVSN chart: 6-month, one-day candle — courtesy of StocksToTrade.com
It was hanging around a breakout level…
This is why I always say, “Look left,” before making a trading plan.
You want to see what the stock has done in the past…
Whether you’re looking at a daily chart to see if it’s a former runner… Or if you’re looking at a multi-day intraday chart to see key levels.
The past can show you where the stock might go in the future.
I like to use whole dollar levels. I don’t nitpick over a few cents…
So when I look left on the multi-day chart, I look for key levels that intersect with a whole dollar level.
In RVSN, that key level was $11.
It was the whole dollar level closest to Friday’s high. On the daily chart, it was also the breakout level from its multi-day run.
And when it was opening green on Monday morning — that was the short seller’s sign to exit.
The high volume and buying demand sent the stock spiking through $11 — the entry I handed to you on my weekly watchlist for free — and sent it to over $18!
A 65%+ move for those who took it and rode it to the top.
RVSN chart: 2-day, 5-minute candle — courtesy of StocksToTrade.com
Of course, you won’t always catch the top of a move, but is 50% or even 20% a gain to balk at?
Those are meaningful gains for any small account trader.
So focus on the key levels for entries and make sure you have a solid trade plan. Those two things can put you in the position to ride out huge potential gains like RVSN.
I’ll be here to help you with picks like this on my free weekly watchlist…
But if you want even more insights into the market with timely videos and exclusive watchlists — join StocksToTrade Advisory.
See everything you get when you join here. I’ll see you on the inside.
Have a great day everyone. See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade