Buying pre-earnings on a pocket pivot

Ok, I’ve learned two lessons so far on buying these types of entries:

  1. from EFOI: don’t buy it if the price has been wedging up with volume falling, AND/OR if the candle before earnings finishes in the bottom half of its range.
  2. From GIII: only build a small position before earnings comes out, half or less of what you would normally buy. GIII’s pattern looked good and the PP day was solid looking. In fact the day before was another solid looking PP day. However, price still gapped down heavily after the earnings release.

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