Trading breakouts

Discussion in 'Strategy Building' started by gifropan, Jan 12, 2010.

  1. GG1972

    GG1972

    How s this ?
     
    #21     Mar 1, 2010
  2. don't know much about trading breakouts but sounds interesting. thank you for explaining,
     
    #22     Mar 2, 2010
  3. spd

    spd

    But what if the QR9 breaks through the NF5? Do you go long when WI pulls back to trapezoid*6? What if your stochastics havent made a full RollOverUpToLeftReversal to the DNHS dashed line? Classic Y8TG situation no?
     
    #23     Mar 2, 2010
  4. GG1972

    GG1972

    just a humble request -please dont copy and paste Jack hershey's posts Puhhhhhhhleeease
    you can use "quote" and then type blah blah blah--same effect
     
    #24     Mar 2, 2010
  5. You are an idiot.
    Stop confusing and misleading newbies.
     
    #25     Mar 2, 2010
  6. GG1972

    GG1972

    to OP
    good strategy is to take overall market into consideration, even though Breakouts are occuring now-look at BIDU PSA BDK and some on charts I posted, this is after the overall market has run up quite a bit so increased chance of false breakout or breakout failure. Sometimes it might seem counter intuitive but when market pulled back recently and didnt really crumble like 2008 that when you start looking for breakouts so that when overall market has updays your breakout can go up and stay away from your worrypoint.

    The better the base the better the breakout imo. If breakout starts meandering right after breaking out high chance of failure. If it consolidates after a significant move then its possible it will continue. After all that its all still random :D :D :D Isnt that easy ?
    Best thing is to take 1/2 off where you think its stalling and let rest ride with breakeven stop and more it moves in your favor keep moving stop. You can goto Davelandry.com and checkout some of his videos. That should get you started somewhere.

    Checkout LMT above $80
     
    #26     Mar 2, 2010
  7. dont buy 80, thats a suckers play. wait for the retrace. Everyone knows newbs buy at the breakout highs..wait for a pullback.
     
    #27     Mar 2, 2010
  8. GG1972

    GG1972

    here
     
    #28     Mar 2, 2010
  9. I like to buy half my position on a breakout, and half on the retrace, if there is one. If you don't enter at 80 you take the risk that there won't be a pullback. I've been burned too many times waiting for that pullback that doesn't retrace anywhere near the breakout price.
     
    #29     Mar 2, 2010
  10. yes, but out of 10 stocks, how many are strong enough to rocket up after a break out?..not many. When you have a breakout from the downside, you have a lot of people that are looking to get short on your "breakout"..this is why so many fail...and thats why i wait for the retrace. Not only is it a safer play, but you also buy cheaper, and your stops generally tigher as well.
     
    #30     Mar 2, 2010