Trading stocks using the Pre Earnings Narrowing Channel
Submitted by bigcat9 on Mon, 03/14/2016 - 17:47The trading method described here is an adaptation of the system described in Chapter 11 of the book "Explosive Stock Trading Strategies". The objective of this trading method is :
(1) To identify high probability winners before earnings announcements
(2) To pinpoint a low risk entry point so that even in the unlikely occurence of a negative earnings surprise , our loss will be very limited.
The entry point is determined by three signals (1) A narrowing Channel. (2) A bullish Crossover . (3) A positive divergence .