Registered: Dec 2009
Posts: 71

Upward channel and downward channels will be analyzed to trade the breakout or the failed breakout aka the fakeout.

Confirmation of a breakout = increased volume and increase volatility

To trade the fakeout I will be using the Wolfe Wave theory to determine exit points to take a profit. I will also use the Wolfe Wave theory to determine exit points to take a profit for confirmed breakouts as well.

http://i.investopedia.com/inv/dicti...ms/AT-wolfe.gif

I'm looking into diversifying my speculation by following a momentum and swing based trading strategy. The momentum trading strategy will look to take profits all throughout the day while exiting all positions by the end of the day. The swing based trading strategy will look to enter on the confirmed breakout/fakeout and hold it for longer than a day to capture bigger moves in the stocks price.

How will I find stocks to trade this strategy with?

I was thinking about looking into sectors that have been performing poorly or excellently for 1-4 week time span to narrow down the choices of stocks to trade with. I will use www.finviz.com free stock screener to find upward and downward channels. I will rank them with the highest probability of a successful outcome by the greater the volume, the greater the volatility, the greater the touches on the trend line and the use of some technical indicators.

Now onto the technical indicators I haven't researched or looked into technical indicators that would aid me in my decision support for making these types of trades. I'm going to research past data of breakouts/fakeout stocks to see what multiple technical indicators were saying and try to find a common similarity between them to find a useable technical indicator that can help me with my decision support.

Anyways I just listed my basic idea, I know more works needs to be done to make this trading strategy better than it already is. If anyone can recommend anything or give criticism that would be great. Thanks everyone and happy trading!!

Registered: Jul 2011
Posts: 1479

breakouts are for retail losers...........

here is a trip top breakout to get the long pendings
then crank it back and blow all the long stops.

the last push up ticked it past by a few on the top to get the last of retail in.

it took 6 hours to set this trap up.

then the clean n' jerk.

cheers,

s

trip top away from the money bare chart.gif
This has been downloaded 215 time(s).

Registered: Jul 2011
Posts: 1479

now lets look at how it should be played..........

trip top fully diverged at the moneyline.

zero lag cross

puke south to a db slingshot setup and the fib 5.76 shopster full pull.

db slingshot , fully diverged on the zero lag
back to the money line

cheers,

s

trip top away from the money.gif
This has been downloaded 171 time(s).

Registered: Jul 2011
Posts: 1479

now long from the diverged db slingshot .

a full 5.7 pull back to the .86 retrace of the original move down.

exit door, go to lunch.

cheers,

s

.86 retrace full pull sling.gif
This has been downloaded 130 time(s).

Registered: Dec 2009
Posts: 71

---

Quote from shopster:

breakouts are for retail losers...........

here is a trip top breakout to get the long pendings
then crank it back and blow all the long stops.

the last push up ticked it past by a few on the top to get the last of retail in.

it took 6 hours to set this trap up.

then the clean n' jerk.

cheers,

s

---

Registered: Jul 2011
Posts: 1479

session boxes.

blow the top off the euro session in ny
grab the long pendings and run it back down.

...............................

blow the bottom off the euro box in ny
grab the short pendings and yank it up.

go down again
yank it back

bankers 3

breakout guys zip

same old.

get your heads wrapped around selling the top and buying the bottoms.
or not............
......................................


learn fib, learn diverge, and above all think different from the rest of retail.

cheers and seasons greetings,

s

pending blow out.gif
This has been downloaded 139 time(s).

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