The monthly reports are a great tool to use to help start building out your spreadsheets.
There are three categories to place stocks in low float, mid cap, and large-cap, and these categories are just the beginning in understanding different patterns.
The first page of this report shows the parabolic short and is tracked using a maximum squeeze percentage. Make sure you calculate the maximum gain percentage after the short. Looking at this report as an example, you can see that the average return will be around 25%. If you go deeper into this metric, you can address the resistance. All of these pieces together help determine the max return for any ticker. This type of information creates efficiency in an ability to improve entry points and maximize profits.
The next part of the monthly report is resistance holding and support holding. These metrics will help determine max gain by helping create an exit level.
During this time, processing the maximum short squeeze percentage will help direct you. If a stock is getting squeezed, you can determine how much by looking at the market cap or float. From here, we can determine the average squeeze percentage because of these three categories; mid-cap, small-cap, and large-cap. This helps when you are shorting a parabolic short and want to figure out where the top might be.
Just like anything else, as you develop more and more knowledge, you can consistently start to see patterns and trends.
Another strategy to discuss is called open volume thesis.
Most volume gets traded in the morning, which means most people went long and short in the same place. However, if a candle gets filled, fear of losses will quickly impact traders. Using the OVT to buy, calculate the flow and the percentage amount the float holding.
If the percentages are high enough and the closing price is lower than the start of the day, it is called a pass. If the closing price is higher, that is was a fail. Understanding this dynamic can help you know when a stock will close lower than the opening price.