logo
Home Register FAQ Members List Calendar New Posts Search
  #1  
Old 12-27-2017,
AlenaKissMa AlenaKissMa is offline
Junior Member
 
Join Date: Sep 2017
Posts: 0
Default Breakout Alerts!

Hint: don't trade the breakout itself, but rather be positioned under it.

If you're looking for a specific pattern, then ascending triangle or something like price not being able to break through a round number with higher lows being made on each pullback would be great to look into.

The rationale is that the professional is positioned under the breakout so that when it shoots up, he sells into those chasing the move, and it ultimately fails. Ever wonder why they say breakouts often fail?
Reply With Quote
  #2  
Old 12-27-2017,
Alenkasgymn Alenkasgymn is offline
 
Join Date: Feb 2017
Posts: 0
Default

Not necessarily. You can tell a breakout is forming because a lot of sellers are coming in at the same level, so there isn't so much prediction going on here as there is simply watching what the market's doing.

So what you would do here is pick one of the pullbacks to go long and expecting the trade to either shoot for that number again, or fail and plunge. You need to watch for both occurrences.

The other way of doing it is observing the failure of the breakout, and getting in on that pullback.

Take ACFN there for example as it tried to break 5.5. The first time it attempted it, sellers came in hard and drove down price. Buyers then come in at 5 and the stock finds support. This is the pullback first mentioned above. But it touches 5.5 again and fail. It is your job as a trader to assess when this is happening and bail immediately, preserving profits (harder said than done! When you first do it, you'll bail when the breakout was imminent).
Reply With Quote
  #3  
Old 12-28-2017,
Alewoxagen Alewoxagen is offline
 
Join Date: Mar 2017
Posts: 0
Default

Anyway, larger failure to 4.5, then reversal right up to 5.5 again. If you have balls, then you were in at 4.5. If not, it's ok. You can develop them. Now it breaks 5.5, and you ride it up to 6.5. You notice momentum is dying, so bail into the market chasers who buy the top. The stock drops to 6. This is the second type of pullback mentioned above. It finds support, and goes on higher.

All that said, these pullbacks are very low-risk entries. You can use fairly tight stops and high stakes in these because it either goes your way or it doesn't. That's how I play e'm, anyway.

And there I just gave out sweet, sweet secrets to many-a profit-making venture. Use it well. And, of course, demo trade this stuff first.
Reply With Quote
  #4  
Old 12-29-2017,
AletheaHmy AletheaHmy is offline
 
Join Date: Sep 2017
Posts: 0
Default

I recommend you get into the habit of drawing your own trend-lines because finviz might not always be there to draw them for you :wink:. No disrespect to finviz but it's better to look at a chart in multiple time-frames and their free version doesn't allow trendlines in those.

Second, you must realize that just because trend broke the line, it doesn't necessarily mean it's a breakout. Is there large volume to support the breakout? How does the momentum look? These are questions you need to answer before you declare it's a breakout.
Reply With Quote
  #5  
Old 12-30-2017,
Alewoxagen Alewoxagen is offline
 
Join Date: Mar 2017
Posts: 0
Default

This is sometimes when experience comes in. You just have to get that gut feeling that its going higher because you have seen the same thing 1000 times or its going to be a fakeout, just because of lack of volume or that it has already broken out 3 times lately and this may be near the top, etc. Just takes practice.

Example was MOVE on Friday. Covered it in chat, but I missed the breakout and didn't chase it higher. That thing was wound up tight at 8.30 on the 3 minute chart and then went boom. I kept telling myself to get in, get in now, but no, I look away for a few minutes to check something else, and when I get back, she done did gone MOVE'd to the moon. I talk stupid cause that was a textbook set-up that made me feel stupid for not trading. On the other hand HERO needed to get through the 5 resistance, and kept bouncing off. So this is an example of waiting until if finally busts through to jump in. I bought 5.02. Watched it hit 5.20, moved my stop to even, and then got stopped out even, lol. Even though I suggested it as a swing idea, I should have just been patient. It closed up and is looking to go higher. Every situation is different. Just have to get the experience to see it, feel it, trade it.
Reply With Quote
  #6  
Old 01-02-2018,
admin admin is offline
Administrator
 
Join Date: Dec 2010
Posts: 978
Default

A friend and I have been playing FAST for a long time. In spite of it being way above earnings, it shows increased momentum in the past weeks. On Friday, it was one of the few that was going up while most everything else went down. Today, it had an amazing rise of $2.16. Most of the time it might rise 50 cents or 75 cents.
Reply With Quote
Reply

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off

Forum Jump


All times are GMT. The time now is .