Momentum Trading Strategy

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Chart Setups & Entries

When and where to buy a stock you have already found: chart patterns, buy points and entry tactics.

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The Episodic Pivot (EP) Setup Most Traders Miss

I get a lot of questions about episodic pivots.

  • What are they?

  • How do you find them?

  • And more importantly, how do you make sure you do not forget about them?

An episodic pivot is a powerful price and volume move caused by a meaningful catalyst, usually earnings, guidance, FDA news, contract news, or some other event that forces the market to reprice the stock.

But here is what most traders miss.

The best setup does not always happen on the day of the big move.

Sometimes the stock gaps up, runs hard, pulls back, volume dries up, tightens, and then gives a much cleaner entry days, weeks, or even months later.

That is why tracking these names matters.

Inside the Momentum Trading Strategy software, we have an episodic pivot preset screen to help find these stocks.

But finding them is only step one.

The real edge is creating an Episodic Pivot watchlist inside the Relative Strength Stock Screener.

Under Manage Sub-Categories, create one called EPs.

Now you have your episodic pivots organized in one place.

Add the names when they show up.

Review them daily or weekly.

Do not force the trade.

Just wait.

Some will fail.

Some will go nowhere.

But some will tighten up and set up again.

EVC is a good example.

The earnings catalyst launched the stock higher, but the cleaner opportunity came later after it consolidated, tightened up, and broke out again.

DELL was another great example.

The episodic pivot should gets your attention.

The watchlist keeps it on your radar.

The setup tells you when to act.