When Calendar Ranges, Leadership Momentum, and Price Align
The markets can often be characterized as a guessing game, without an easy way to determine the future performance of certain stocks. Despite that, knowing when to buy and sell can be made easier if a trader or investor pays attention to three key factors: calendar ranges, leadership momentum, and stock price.
Calendar ranges refer to the trading period within a certain stock’s history. Some stocks are better suited for shorter-term trading, meaning they have shorter ups and downs. Other stocks can be traded for longer periods, giving traders an opportunity to capture larger gains or losses. While there is no guarantee that a stock will make a big move within a particular range, understanding the past performance of a stock within its calendar range can be helpful.
Leadership momentum is another factor to consider when trading stocks. It refers to the rate in which a stock is moving compared to other stocks in its sector. Basically, the higher the leadership momentum, the more likely the stock is to continue its trend. Following stocks with strong leadership momentum can help traders capitalize on potential gains they may not otherwise have seen.
Finally, price is another component of a successful trading strategy. When looking to buy or sell a stock, traders must be sure to evaluate the stock’s price relative to its expected performance. If the stock appears to be undervalued, traders should consider buying. Likewise, if a stock’s price appears to be overvalued, traders should consider taking profits.
By paying attention to these three factors – calendar ranges, leadership momentum, and stock price – traders and investors can increase their chances of profitable trades. Knowing when to buy and sell can be a difficult endeavor, but becoming familiar with these three elements can provide some semblance of reliability and insight into how the markets may fare.
