Technology stocks went from correction territory to a near-vertical climb in just a few weeks.
The problem?
Most traders either:
chased extended moves
froze and missed them entirely
or entered too aggressively and got shaken out.
So how do you participate in strong trends while still controlling risk?
One approach is dropping down to the 1-hour chart and waiting for short-term weakness inside the larger trend.
During sustained rallies, strong stocks often become temporarily oversold on hourly Stochastics roughly two times per week. Those moments can create lower-stress entry or re-entry opportunities while the bigger trend remains intact.
Aggressive traders may enter as the stock becomes oversold using a wider volatility stop such as 1.5–2 ATR.
More conservative traders can wait for confirmation:
after the hourly chart becomes oversold, wait for price to break the previous day’s high before entering.
Oddly enough, this often improves win rate and reduces drawdown — even though emotionally it feels like “paying up.”
That’s one of the biggest mindset shifts in trading with the trend:
the best stocks rarely feel comfortable to buy.
Inside Next Wave Daily, we’re currently tracking several stocks already showing strong relative strength and active trends.
Here are 5 current long positions to watch for dips.
Members can:
follow new entries daily
monitor how trends evolve
see new opportunities as they develop
You can start with a 7-day trial below.
— Andrew Falde
Edge Navigator
Trading financial instruments involves significant risk and may not be suitable for all investors. Computer generated models are hypothetical past performance and not indicative of future results. You may lose more than your initial investment. Please ensure you fully understand the risks and seek independent advice if necessary. Read other important disclosures.