Characteristics of Support Wave Stock Selection

With countless stocks available, selection becomes a challenge. Having previously covered various techniques, today the editor of Winner Wealth Network introduces the Support Wave method. Key features are outlined below.

What is Support Wave Selection?
This method identifies stocks through consecutive support levels. Applicable stocks must exhibit:

1. First Bearish Candle After New High

   • Typically two doji stars or long-lower-shadow candles (sometimes with identical lows)

   • On Day 3: A gap-up followed by a bare-foot or short-shadow bearish candle

2. Morning Plunge with Volume

   • Rapid 5%+ drop in early trading with heavy volume

   • Followed by a strong rebound that may/may not fully fill the gap

3. Follow-up Pattern Confirmation

   • After another new high, a bearish candle emerges

   • Draw resistance at its peak and support at the subsequent low

   • These levels often align closely

   • Enter when price breaks support with a bullish candle; initial profit target at prior bearish candle's high