When to go long?
Most traders see something moving a jump right in, this is why 90% of traders fail (FOMO - Fear of missing out) The good traders know to wait for the perfect entry and attack, like a sniper! Below are some examples of when to buy a stock.
Ascending Triangle - This is where a stock hits a certain resistance multiple times and makes higher lows getting squeezed into a triangle like the image above, the entry is the breakout above the resistance. A lot of aggressive shorts add into the positions before the breakout, once its broke out they panic and start to cover creating a squeeze, long then pile in to drive the price even higher.
Dip Buys - As you can see after the breakout some times the stock pulls back and bounces of the previous resistance which then becomes the new support, the entry for this could be as close to the support as possible with your stop loss below the new support, with a target of the HOD (High of Day).
Red to Green Moves - This is my favourite pattern, its where a stop drops at open and goes red on the day this is where aggressive shorts pile in, throughout the day it could be 10 minutes or 4 hours the stock then begins to revive itself and then it breaks the opening price and goes green on the day, shorts start to panic and cover and longs pile in. This then creates a short squeeze. (Always wait for the breakout as it could double top and fail)
Bull Flag - Another reliable pattern is the bull flag, its where a stock spikes then pulls back to consolidate and then runs again, as you can see from the image above the highs of the candles get lower and lower. The entry is the first candle to make a new high then your stop loss is the low of that candle.
What happens if i missed it?
So you have missed... Should you buy anyway?... No again this is where traders fail because of FOMO (Fear of Missing Out) they chase mid-spike then it turns around and drops on them. What should you do? Be patient and wait for the next pattern, if it doesn't appear then no trade = no loss.
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As you can see from the image below there are usually multiple entries:
