I try and learn from what happened last time. Last trade I bought the highs, then got stopped out on a pullback, lol. I try to "buy high and sell higher" if I'm bullish...maybe this is the wrong view to take?.. Like I said, I had a stop at 30.26..I wanted to buy into the strength, IF the stock was moving up Something about buying a stock when its falling seems like a contradiction...... but worth a try. cm
I buy high and sell higher as well. Volume helps me to decide if I should enter this way or not. But not eveery trade will win. It is ok to have a losing trade as long as you stick to your plan. And get out at your stop you will be ok. Just keep a good look out for the next level of support or resistance and make sure that it will have enough room to work and give you enough profit before the S/R level. I hope that makes sense...
Unless a breakout chart patttern is driven by news, breakouts are no longer a reliable chart pattern when the benchmark SPX index is in an intermediate term downtrend. When the SPX was above the rising 50 day moving average, from late July 2006 to late February 2007, we had an intermediate term uptrend. There is a higher probabiltiy of success for breakout chart patterns to succeed in an intermediate term uptrend. We are now in an intermediate term downtrend (SPX is below a declining 50dma and the 20dma is bearishly crossed under the 50dma). Your odds of a successful breakout are even worse if the stock you are trading is in a downtrend (declining 20dma and 50dma), because then you are betting on a continuation of a stock that has rallied into its declining moving average resistance, in a general market (SPX) that is downtrending. Jeff
CSGP From a TA point of view, I dont know why this breakout didn't work. There was more than enough volume, and all other indicators were positive.
DNA I have one question. Why is it a breakout on CSGP fails on huge volume, but a stock like DNA makes higher highs each day, on what seems to be average volume ?. I've noticed this same thing on CAT a while back.