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Recognizing strong up trend days

Strong trend days offer excellent trading opportunities, as pullbacks generally occur at higher lows, offering entry points for short-term trades through the day (as well as opportunities to hold positions through the day). There are few signs which could be useful to identify trending days:-

(1) If there is a gap open it should not be too large. ‘Too large’ is rather subjective, but 30-40 points is fine, I suppose.

(2) Lopsided ratio of advancing to declining stocks, suggesting broad market strength.

(3) Average or above average trading volume, with volume expanding on moves higher.

(4) Lows of the day hold. Either a pattern of higher lows is evident, or a breakout after an initial consolidation.

(5) An early thrust above upside price targets: previous day’s high, R1/R2, so that these targets are hit early in the trading session.

(6) Dominance of bullish trading themes, such as sector strength among growth-oriented stocks, or gains in Asian markets.

I am in hope that we could visit many trending days as it is start of bull market, so these rules could be useful to traders.

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