Base breakout
Figure 22
8 Month Base Breakout Daily
Base breakouts are just what they suggest. A stock builds a
base, the duration of that base can be anywhere from hours to months or even
years. The longer the base and more powerful the break when it leaves that base
often equates to the duration and size of the run.
Range break
Figure 23
Range break 5 minute With Pennant and Bull Flag
Range breaks are when a stock trades within a range of price
and eventually take out that range. As it trades within a range it builds
energy until eventually the bulls or bears cause a significant move.
Unfortunately range breaks have a tendency to give false breakouts quite often
since everyone knows the range and it can easily be manipulated. Trading range
breaks requires patience and is best played once the break is confirmed with
high volume. If the stock falls back into the range it’s most likely a failed
range break.
Flat top Breakout
Figure 24 Flat top break out daily>
Notice the bull flag forming at the far right of
the chart
Flat top breakouts are again just what the name suggests.
The stock trades in a range for a period of time. The price of the stock
continues to test a specific price. Think of this setup as a game of PONG. For
you old timers like me that shouldn’t be a problem, for you youngsters Pong was
a game where you had a ball that you would bounce up into a brick wall and with
each hit you would weaken the wall until eventually you break through to the
other side. Flat top breakouts are the same concept each time the price hits
the wall it weakens. The more hits the wall takes and the longer the duration
it takes to break through the more powerful the break becomes. Just like in the
game pong the more hits the wall would take the faster the ball would move and
the energy would continue to build until its eventual release.
Stocks on my radar this morning
MBLY long Moving average bounce, YHOO follow trough on short, CRNT pr possible trendline break, ODP Cramer effect, MSON going parabolic very thin,
Plus the stocks in this week's Video
This weeks Video Link
Best of Success!
If you are interested in getting my trades entries and exits REAL TIME for both day trades and swing trades sent to you in email and in text . You can join me @ the Stock Aviator chat room. It is a paid site and if you use this link https://www.stockaviator.com/79-90-a-month-for-premium-membership your first 30 days will be at a discounted price of $79.90. After your initial 30 days it will be $99.00. I recommend trying out the free 14 day trial.
I encourage people to take their own trades with their own setups.
However, chat rooms are great for idea generation and learning the style and strategies of other traders. If you sign up say hello and let me know in the chat room. My handle is "Vegastrader66" I will walk you through how to get set up for my email alerts.
I encourage people to take their own trades with their own setups.
However, chat rooms are great for idea generation and learning the style and strategies of other traders. If you sign up say hello and let me know in the chat room. My handle is "Vegastrader66" I will walk you through how to get set up for my email alerts.
No comments:
Post a Comment