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EPs Analysis August 2023

EPs Analysis August 2023

Hi,

here is the data collected during an analysis of the Episodic Pivot setups which happened in August 2023.

The study was bullish biased- the focus was to evaluate what is the highest momentum level that an EP can achieve after the open. For the EPs that closed below the open, just the first day % was measured.

Here are some key facts (click to expand):

Here is the EP Map for August (click to expand):

Daily chart + intraday 5-min data + catalyst can be downloaded below:

Breakouts and EPs Monthly Review - Google Drive
Google Drive

For the tickers of interest, I suggest you study the catalyst in more detail. As 87% of EPs happen after an earning call, there are more details than just earnings that can serve as a catalyst.

Personal opinion/no financial advice:

  • This time, when studying the EPs I saw, based on the 5-minute chart that sometimes momentum comes in a channeled way, and the stock goes up step-by-step, very often showing an open range breakout. I called these EPs tradable. And there are EPs where the price action is very erratic, it's very hard to achieve a good entry and not get stopped. I called these EPs non-tradable (they can show a profit by the end of the day but it's almost impossible to have a good risk management).
  • Another takeaway from the analysis that can be seen very well from the map is that at the peak of the earning season, there are a lot of non-tradable EPs that distract the trader and make it difficult to enter profitable tradable EPs. This becomes a big challenge when trading the setup.
  • The price at the open can serve as a good reference for risk management. The % change from the open was also measured to evaluate a potential stop-loss distance.  Make sure to review those numbers.

Used software: TradingView (charts), SeekingAlpha (catalyst) Snagit (print screens) (no affiliation).

The study was made possible due to the support of ActiveSetups subscribers and people who downloaded the dataset from the store. Thank you guys!

Best of luck! @flow

If you want to learn more about EPs I suggest you check the page below:

Episodic Pivot | Classification | Catalyst Analysis | Trading Strategy
Episodic Pivot is a highly profitable setup popularised by Pradeep Bonde and Kristjan Kullamagi.
mastertradingflowflow

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