A Pocket Pivot is a price/volume accumulation pattern. A Pocket Pivot occurs when price moves up with volume higher than the maximum down volume registered in the previous 10 days.
The basic premise of the Pocket Pivot: Institutional Buying creates new-high base breakouts, but we also know that institutional buying occurs within consolidations and during uptrends. This buying within consolidations and uptrends in most cases leaves price/volume "footprints". The pocket pivot describes that "footprint," and provides a clear, buyable "pivot point," or "pocket pivot buy point." Pocket pivots also provide a tool for buying leading stocks as they progress higher within uptrends, extended from a prior base or price consolidation. https://www.virtueofselfishinvesting.com/pocket-pivot
Tips on Using Pocket Pivots Not every pocket pivot point in a stock is a buy. Always check fundamentals / stories and market context behind the ticker. Always double check for possible earnings / news releases before buying any stock! Mind the volume and volatility. We advise at least >1 million volume traded per day. Use a good and sound fundamental list to limit down trading candidates. You can use the StockTwits50- list or the famous IBD-lists from investors.com https://www.chartmill.com/documentation.php/indicators/Pocket-Pivot-(Chris-Kacher)?a=5&title=&cat=2 Finding Pocket Pivots with Chartmill Scan for pocket pivots today in strong stocks
Lets delve a little deeper and look at both sides of the volume/price of the pocket pivot equation. As was stated in the first post rising price and increased volume are both needed, but what happens when a stock open above the previous days close but the falls below the open to finish as a negative bar yet it still closed above the previous day? Here's an example...