The ideal set-up is a stock emerging from a constructive consolidation with strong accelerating earnings and sales.
optimal position size should be based on their own risk/reward and risk tolerance. For instance, if you’re a 2:1 trader, your optimal position size is 25%.
The research shows that EVERY bull market in history has had an accumulation day (also referred to as a “Follow Through Day”, or FTD) as a prerequisite. So, there is little reason to look for a new bull market without first having the FTD occur. Trying to pick the bottom turning point is a fruitless exercise, so we wait for the market to prove to us that a bottom may be in place.
