Check the catalyst
Identify what caused the move: breaking news, earnings, filings, approvals, contracts, or unusual activity.
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Identify what caused the move: breaking news, earnings, filings, approvals, contracts, or unusual activity.
Compare current volume with the stock’s normal activity. Price movement without participation can fade quickly.
Note premarket highs, previous closes, support, resistance, VWAP, and areas where momentum changed.
Know where the idea is wrong before entering. Never let excitement make the risk decision for you.
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