How do you know if a stock is a chase or if it can likely go higher?
Zoom out to the weekly and use the 8 EMA
The strongest stocks in the market rarely lose the 8 week during powerful Stage 2 advances.
As long as funds continue accumulating shares, pullbacks tend to get defended around the 8 week EMA and price continues stair-stepping higher.
Some of the best setups have come right off the 8 week EMA:
$ARM
$ALAB
$NBIS
Once a stock starts closing decisively below the 8 week EMA after being extended for a long time, that’s often your first signal that momentum is slowing and institutional demand may be cooling off.
The mistake most traders make:
-buying far extended from the 8 week
-chasing emotional breakout candles
-ignoring when character changes
So next time you are considering if a stock is extended on the daily.. zoom out to the weekly and see where the 8 week EMA is.
This is the spot where the next leg higher begins.
One of the biggest misconceptions newer traders have is thinking the “easy money” is gone after a stock makes a large move.
In reality, the best stocks rarely go straight up forever.
The strongest names will impulsively expand, get extended from the 21EMA, then spend time consolidating, tightening up, and allowing the moving averages to catch up underneath price.
That reset is where the next opportunity forms.
Why?
Because institutions can’t fully build positions in one day. They accumulate over time. After a strong expansion leg, supply gets absorbed during consolidation while weak hands get shaken out.
Then eventually:
-volume contracts
-volatility tightens
-price respects the 21EMA
-demand starts stepping back in
That’s when the next leg higher can begin.
The key is understanding the difference between:
a healthy pullback into the 21EMA
vs.
Actual trend failure.
Don't be the person that chases trend extensions.. even the best stocks will eventually set back up for a move higher.
A lot of incredible opportunity on the leaders like:
$INTC
$NBIS
$ALAB
$AMD
In the coming weeks as they setup off the moving averages.
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$ARM
Explosive breakout with lots of volume
I don't just through out the words, "cant miss" lightly...
When a stock:
-Is breaking out of a multi year base
-Setting up in a tight daily base off the EMA's
-Liquid in the the best theme in the market
That's a cant miss criteria.
Study from these, and search for the next.
$VELO
Setting up at the top of the stage 1 base
Printing it highest volume week EVER
Transitioning into manufacturing core parts for aerospace defense...
Not one is really watching this name, which means it could make a massive move
$ASTS
Massive weekly breakout on high volume...
If the SpaceX IPO Valuation continues to go higher into the IPO then this name is going to absolutely explode...
Targeting: $128+
$INFQ
Setting up in a massive weekly IPO base
Highest weekly volume EVER printed last week off the back of a US government investment
This could be a massive mover...
$CIFR
Spent the last 8 months building a massive weekly base off the 50 week EMA
Datacenter stocks are starting to heat back up..
Setting for a big breakout into new all time highs through $23
$ZETA
Setting up in a massive monthly base
Broke out of a big IPO base, now setting back up right at the top of the previous breakout.
AI-powered marketing and customer data software company
Q1 2026 revenue accelerated ~50%, on strong enterprise AI adoption
Break over 20, gets it moving
If you spend all day focused on macro headlines instead of the actual price action in front of you...
you will suck at trading.
Everyone who was too busy analyzing the macro news, missed one of the best rallies in recent histories.
Instead of focusing on news, focus on what actually pays traders:
-price action
-volume
-relative strength
-market trends
-tight consolidations
-EMA support
-institutional accumulation
-leading sectors
Charts show where money is actually flowing.
My exit strategy looks like this:
1. Trim into strength after initial pop and move up stops to even
2. Use the moving averages to trail the rest of my position
The only time, I make an exception to the rule is if a stock starts to get extended from the key moving averages... specifically the 8 ema.
The rule of selling a small piece into extensions has saved me giving back a lot of profits when things start to pull in.
The rule is 3x ATR extension from the 8 ema
When a stock is trading 3x its ATR away from the 8 ema its usually time for it to slow down
This never means:
Sell the full position 🚫
BUT
Realizing some of the position and letting the rest move is how I like to manage extensions
This is how I managed $MU so far from the big base breakout👇
The right environment can truly make your whole year:
I've made more in the last 30 days than, I've made over the last 6 months combined...
Is this normal? Absolutely not
Am I going to take advantage of it until the party stops? Absolutely
Knowing when to press is KEY
By the time the trend is over, you can make account changing gains.
Don't know who needs to hear this but inspiration here
Its never too late to change your life...
No matter the situation you are in:
-Debt
-Depression
-Bad job
It is possible, I've seen it happen countless of times with my own eyes
The MOST important thing, is to never rush the process
Give yourself the chance to do things the right way, and you will see the progress you can make in just a short period of time...