In this article, I will show you how to spot stocks that are poised to have explosive moves by looking for certain clues in their price action. This article will also reveal how to use these stock price action clues for you to determine whether or not a stock is going to have an explosive move to the upside which you can you use stock option trading techniques to purchase call options and put yourself in the most advantageous position to gain several hundred percent gains in return. There are four trend qualifying clues within a stock's price action and they are gaps, laps, strong closes, and the slope of the price action.

A gap in price happens when a stock opens higher than the prior day's high. When a stock gaps higher than the previous day's high in the direction of the prevailing trend it reveals a strong demand for the stock as investors start bidding up the price of the stock before the market opens for trading. And when the lows of the gap are even higher than the previous day's high it shows even more demand and reveals an even greater strength in the direction of the prevailing trend to the upside.

A price lap happens when a stock opens higher then the prior day's close but less than the prior day's high. While a price gap is stronger the price lap in the direction to the upside can let you know that there is serious momentum and strength to the upside. That momentum and strength in price can be exploited with stock option trading for serious profits. Especially, if there is consecutive laps in price to the upside which reveal even greater strength and can show the potential for a long term bull run.

Thrusts in price movement also reveal strength in an impending uptrend. A thrust is a daily chart bar that is almost or greater than the average daily price action than the previous five days. These thrusts reveal a frenzy of buying and often occur during price base breakouts as a stock gets ready to take off on a big bull run.

The slope of the trend is also an important indicator of momentum to the upside and whether that momentum will continue to gain strength. A price slope of 90 degrees roughly shows a healthy amount of relative strength so if price declines slightly or if a stock begins to form another base then an alert trader can plan determine the health of the uptrend for trading call options. However, if the price slope goes to 45 degrees or higher, the skilled option trader knows that these accelerated moves often spike higher before crashing and adjust their option trading strategy.

These price patterns of gap, lap, slope, and thrusts are but four of the clues to help you spot stocks that have the potential for huge moves. By studying price action for these price patterns you can trade stock options as they make new highs or during pullbacks for huge profits as you leverage there explosive profit potential. Watch how many times these price patterns occur during a three to four week period on a stock and it will help you determine which stock has the highest probability to go on make historic runs in share price.