Karim Rahemtulla, Head Fundamental Tactician, Monument Traders Alliance Dear Reader, If you're a beginner trader trying to capture massive gains without risking your shirt, you'll want to understand how price channels affect stock patterns. Take "pop stocks," for example. Pop stocks are a specific group of companies that react strongly to the upside or downside depending on a catalyst. They jump on fast news, hype and momentum... often fizzling out just as quickly. Some of the catalysts that affect pop stock price include... - Earnings beats
- FDA approval (for biotech drugs)
- Partnerships and buyout rumors
- Big insider buys
- Unusual options activity
- Social media hype (Reddit, X)
While these catalysts can cause a stock to move 10%... 50%... even 100% in a day - they're also volatile, liquid and driven by emotion. If you don't manage risk, you could be left holding a balloon right after someone stops blowing into it. However, if you can identify a specific price channel, then all you have to do is play these price channels over and over again for consistent profits. Example of Price Channels in Specific Stocks We've Traded If you look at pop stocks we've traded in the past – like Recursion Pharmaceuticals (RXRX) and Absci Corp. (ABSI), both of these plays have a specific price channel. In the example below, we identified a $4 top price channel on ABSI. When it gets to $4 or $5, the pattern shows that's the top. Same thing with RXRX below. But instead of $4, it shows a top pattern of around $6-7 and then goes back down. As a trader, imagine how you could play these channels over and over once you identify them. Whenever a catalyst is upcoming on RXRX or ABSI, we take note in Catalyst Cashouts. These catalysts, combined with a clear price channel, are how to trade for consistent gains over and over on the same ticker. | 
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