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TraderLion

@TraderLion_

Mar 29 • 12 tweets • 2 min read • Read on X

Most traders miss the best opportunities because they can't recognize a new bull market early.

Here’s how to identify major turning points using:

• Breadth signals
• Historical case studies
• Moving average trends

🧵 Let’s break it down:

Before you can spot market turns, build a solid foundation:

• Technical analysis (charts, trends, breadth)
• Fundamental analysis (earnings, revenue, leadership)
• Macro context (inflation, GDP, Fed policy)

All 3 pillars must align.

You're in a confirmed uptrend when:

• 10-day EMA > 21-day EMA
• 21-day EMA > 50-day MA
• Price holds above 30-week MA for 2+ weeks
• New highs outpace new lows

This is your confirmation window.

@mwebster1971 “Power Trend” adds more edge:

• Price low > 21-day EMA for 10 straight days
• 21-day EMA > 50-day MA for 5+ days
• 50-day MA is rising

Shows strong institutional accumulation early.

1990 Bear Market Example:

• Breadth flipped before sentiment did
• AMGN, MSFT, COST led early
• Investors were bearish; the market disagreed

Always trust the internals, not the headlines.

1998 Mini-Bear Example:

• Breadth thrust hit in November
• IPOs like F5 and HLIT ran 5–10x
• Rally lasted 12+ months

Early leaders emerge just after breadth turns.

What happens after a bear market:

• % of stocks above 50/200 MA surges
• A/D line breaks out
• Triple-digit leaders emerge
• Pullbacks become buy zones

Don’t wait for perfect news. Watch the internals.

2020 Post-COVID Rally:

• Follow-through day triggered
• Breadth exploded
• DOCU, ZM, PTON and CRWD delivered huge gains

Fast markets reward prepared traders. Trust price and participation.

What happened in 2023–2024:

• Breakouts in NVDA, SMCI, CELH, PLTR
• Breadth and A/D lines turned positive
• Early-stage setups led to explosive gains

This is when true leadership revealed itself.

Here’s your playbook:

• Track breadth & MA alignment weekly
• Watch % of stocks above 50/200 MAs
• Identify stocks with triple-digit earnings/revenue
• Use templates (O’Neil, Weinstein, Minervini)
• Size progressively
• Sit through winners

Recap: How to identify a true market turning point ⬇️

• Confirm with breadth and trend
• Study prior launches: 1990, 1998, 2009, 2020
• Use historical setups and templates
• Track breakout leaders
• Scale in, sit tight

Compound your edge when the window opens.

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More from @TraderLion_

TraderLion

@TraderLion_

Mar 24

Struggling to find consistency as a trader?

Christian Flanders went from poker player to 2nd place in the U.S. Investing Championship with a 433% return.
Here's how he overcame setbacks, controlled risk, and mastered the markets: 🧵

🎯 Key Takeaways:
• The poker & trading mindset
• Progressive exposure: adjusting size dynamically
• Why episodic pivots outperform
• The #1 rule for reducing drawdowns
• How historical chart work gives you conviction Let’s break it all down:

🎯 Poker taught Christian the value of emotional control.

In poker, success = betting big when you have an edge.
In trading, it's the same, but you also fight uncertainty over days/weeks, not minutes.
Mastering your emotions is essential in both arenas.

Read 11 tweets

TraderLion

@TraderLion_

Mar 22

This gap up strategy has the ability to change your life — and we're not exaggerating.

It's the exact one that @Qullamaggie used to go from 5k to 100M...

Here's everything you need to know about the Episodic Pivot setup by @PradeepBonde (bookmark this):

@Qullamaggie @PradeepBonde Let's start by answering the question:

"What is an Episodic Pivot?"

Here's Pradeep's answer:

@Qullamaggie @PradeepBonde Now that you know what an EP is, there are the two types:

1) Growth company/category
2) Turnaround situation

Growth companies have repeat Q's of sales & EPS growth, & turnaround EPs go from negative to positive fundamentals quickly.

More ↓

Read 12 tweets

TraderLion

@TraderLion_

Mar 18

Trading is 95% mental (maybe even more).

That's why Mark Douglas' work was so transformative for traders of all markets — it's not just about TA. To be successful, you have to focus on the mental side of trading.

Here are 15 of his top quotes on trading psychology (save this):

1. "Good market analysis can certainly contribute to and play a supporting role in one’s success, but it doesn’t deserve the attention and importance most traders mistakenly attach to it."

Instead, you should be focused entirely on how your mind works.

2. "Confidence comes when you trust yourself to act in your best interest."

You know you make common, avoidable mistakes.

The only way to build true confidence is creating mental processes to stop you from making them in the first place.

Read 18 tweets

TraderLion

@TraderLion_

Mar 13

One of the best ways to identify a bottom in real-time is using US Investing Champ Oliver Kell's @oliverkell_ Price Cycle.

The key pattern you need to know: The Reversal Extension.

Here's what it is, how you can spot it on the charts, with examples:

What is a Reversal Extension?

A Reversal Extension is a large reversal bar in a stock or index that is already extended to the downside below the 10 and 20 EMA.

Look for heavy volume capitulation — showing that buyers start selling and sellers cover shorts.

More characteristics of Reversal Extensions:

→ Look for a defined support level on a higher timeframe.
→ Heavy volume capitulation on the reversal bar is a key ingredient.
→ After the reversal extension, expect volatility, then look for price to tighten

Read 9 tweets

TraderLion

@TraderLion_

Feb 19

One question we get a ton — does the 8% stop loss rule from William O'Neil still work?

While it depends on the exact scenario, we've heard a different type of strategy from other market wizards:

Here's more on the the 3-4-5 rule:

Traditional CANSLIM methodology taught an 8% stop loss from a proper buy point, but even those who traded with WON said his stops were much tighter.

And if you study great traders like @markminervini or @Upticken, you'll see they implement the 3-4-5 strategy (or something similar).

Here's what that means:

Instead of setting your stop 8% from a proper buy point (and not being able to size like a superperformer), split your stops up like this:

→ 3% stop loss: sell 1/3
→ 4% stop loss: sell another 1/3
→ 5% stop loss: sell the final 1/3

You've built in wiggle room for price while also being able to put upwards of 25% equity in a name without risking more than 1% of your capital.

Read 5 tweets

TraderLion

@TraderLion_

Feb 16

It takes the best traders 5-7 years to find a system that works for them to ultimately become profitable.

Here are 10 lessons (from market wizards & hundreds of top traders) that will shorten your learning curve significantly:

Lesson 1: Trading Takes Patience & Hard Work

There's no shortcut to success in the markets.

William O'Neil is a perfect example of this — he put in the time necessary to build a system that fit his personality (CANSLIM).

Study the greats, & you set yourself up to be one.

Lesson 2: Stay Positive, Focused, & Disciplined

@Upticken is a great example of always staying positive no matter what.

Use the minor setbacks as lessons, always focused on improving and becoming the best trader/person you can be.