Focus on stocks with strong trends with pullback entries
With the broader market bullish, now is an ideal time to trade trending stocks using pullback entries. Companies such as Nvidia, AMD and Microsoft are in strong uptrends, which provides good turning opportunities. The best setup is a three-bar pullback to the EMA21 or VWAP area on the 1-hour chart.
Entry, volume and risk management
Wait for a bullish reversal light before entering. Confirm the move with increasing volume – this acts as a green light. Place the stop-loss just below the previous day’s low or large moving average.
For smaller setups, focus on overextended small caps with low volume. Use Relative Volume (RVOL) and ATR to select risk-adjusted trades. Avoid chasing green candles – let the setup come to you. July remains volatile, so prioritize quality over quantity and always protect your capital.