Since many folks are worrying about stocks going too high too fast, want to share one technical indicator which I have used for years. Like all TA signals, there is no sure bet, but this one has pretty high reliability. You could combine this with other smoving average signals shared by 均线大哥 and 猫大。
The question here is: When should I start worrying about a stock in mid-term --- mid-term is not about daily move, not even 2-3 days, but typically in 2-3 weeks window.
1: First of all, if you are not familiar with Tom Demark sequential indicator, please look it up.
2: Next, after your stock has at least 6 positive TD marks on the daily chat, you normally do not have to worry about this stock until you see top divergency pattern (顶分型）。
What is 顶分型？Basically, it is a 3 candle pattern where the middle candle has higher high and high low than the candle before and after it.
In vast majority of case, stock will keep its uptrend unless 顶分型 pattern shows up (again, this is best reflected in situation where stock has 6 positive TD marks already).
3: Lastly, just because 顶分型 is detected, does not mean stock will for sure go down from there. It should be used as a safety check. If you dont see 顶分型，you should normally feel safe with your stock.
Below is AVGO's daily chart, you can see that 顶分型 showing up for the first time since 8/5 rally (the downwards red arrow). Again, this does not mean AVGO will for sure go down, but to remind us we should start pay attention to it (there are ways to verify if it really goes down, but that is a long story and maybe we can talk about it later).
NVDA， QQQ， SP500，DOW, none of them showing 顶分型 since 8/5 and all of them have 9 TD marks.
You can easily ask chatGPT to write a code to detect this pattern for you on your tradingView chart
