Potential & Breakout trading--Technical tips and tricks

[tech/a]

Yes.
Both VSA and Candlesticks (while in some ways similar) are individual technical charting methods.
In fact true VSA charts dont show OPEN in their bars as its not considered important.

 

[Frank D]

BTA

Coming down from April's highs @ 1.49, and support failing to hold @ 1.31

Based on the current pattern, my view is that Price is moving back
down into 1.18.

There are two patterns at play....

#A) finds support @ 1.18 and then continues higher in MAY (above 1.31)

#B) same pattern as the first Quarter, finds support @ 1.18, but then struggles
to rise higher than 1.31 and moves back down towards the lows.

 

[Frank D]

BTA:-

Trend bias has continued down into 1.17/18

And as we can see below, there has been a lack of buying over the past
2-days to help get it back above 1.28, by next week's open.

Just by looking at the price action... there's more reason for BTA to
move lower (#B)...than move upwards, if it begins trading below 1.21

Note:- if it's below the weekly lows @ 1.12, then treat it as
a break and extend pattern towards the following
Weekly lows (unkown as yet)

 

[Synergy]

This caught my eye as being slightly interesting...

GGP, broke out of a pretty solid channel from around its all time lows and now has fallen back and bounced off both the top of the channel and the rising trend line. It's come down on low volume, and I'm watching closely to see if it's got a bit of a rebound in it from here.

 

[tinytim1]

YRR looks promising from here, nice volume build.

 

[patchau]

For sometime I have followed Frank's methodology, applying the system to long trades using ASX stocks.

The difficult part was finding stocks, breaking out, as their closing price crossed and closed above the weekly or monthly 50% level.

Finally, using a MetaStock exploration I believe I have a way around this problem.

Attached is an Excel file containing today's selection. (week ending 6/5/2011)

Close= closing price

Wk Val=weekly 50% level

Mth Val=monthly 50% level

Weekly & Monthly columns containing "1" = closing price crossed above the 50% level

 

[pavilion103]

Will crank this up again in the coming days.
But some initial food for thought.

ALL trends START with a breakout.

NOT ALL breakouts are EQUAL

There are breakouts everyday so how do we find those with greatest potential.

There are also many types of breakouts.

PRICE
VOLUME
TREND
PATTERN
SUPPORT
RESISTANCE

How often do we limit ourselves to opportunity?

This is what I am most interested in. I don't think the breakouts I've been trading in my sim are all that fantastic and this insight would be sensationsl!

 

[Frank D]

BTA

BTA has moved into a 3-week consolidating pattern, without dropping lower than
the Weekly lows @ 1.14

current price action (Support 1.17), suggests the next week will move back
towards the monthly 50% level @ 1.27, matched with the Weekly highs

1.27 is seen as resistance during MAY, however, it will shift at the start of June

 

[white_crane]

Haven't been any posts in here for awhile, so here's one for everyone to view and comment on.

Note
(1) The very high volume when it bottoms (20/06) and the downtrend in volume that follows with no penetration below the low of that bar, and
(2) The wide ranging bar on very high volume (04/07), following by rapid downtrend in volume with a tight bar on very low volume 3 days later.

 

[tech/a]

While it's a good short term trade I feel it's almost over.
I read this as a pullback in a 5 wave down trend
Most of these patterns become triangles before finishing off the wave 5 pattern
Currently forming wave 4 in my view.
You've identified an exhaustion in the wave 3 this is typical in a reversal of trend
Even for a temporary reversal.

 

[white_crane]

While it's a good short term trade I feel it's almost over.
I read this as a pullback in a 5 wave down trend
Most of these patterns become triangles before finishing off the wave 5 pattern
Currently forming wave 4 in my view.
You've identified an exhaustion in the wave 3 this is typical in a reversal of trend
Even for a temporary reversal.

I too thought it was coming to and end - based on the high volume bars over the last two days coming immediately after the short pullback.

 

[tech/a]

Some further notations and comments along the lines of "tips and tricks" with regard to NDO.

CLICK TO EXPAND

 

[bailx]

I read and hear a lot of people, talking about and trading breakouts as though they can predict when the breakout will happen. I think its more of a high probability, low risk scenario. To know when and how to trade a breakout you need a good strategy.
I understand that best way to trade for breakouts is through a trending channel. The stock becomes more receptacle for a breakouts to happen. use your indicators, watch for the trending patterns.

 

[Boggo]

Some further notations and comments along the lines of "tips and tricks" with regard to NDO.

CLICK TO EXPAND

View attachment 43636

You were spot on there tech/a

 

[boff]

Potential short on Spot Silver.

Apologies in advance if this should be in the Commodities thread but it seemed more appropriate here.

This looks to me like a descending triangle. Using the 30 minute chart I have already traded in and out of this pattern once in the last 24 hours (with profit) and have just entered again, but this time hoping for a breakout down to $27.

 

[explod]

Potential short on Spot Silver.

Apologies in advance if this should be in the Commodities thread but it seemed more appropriate here.

This looks to me like a descending triangle. Using the 30 minute chart I have already traded in and out of this pattern once in the last 24 hours (with profit) and have just entered again, but this time hoping for a breakout down to $27.

View attachment 45712

Untill it actually breaks out of the pennant I fail to see where there is any potential either way.

On my reading it could just as well go against you, and currently it is.

 

[boff]

Untill it actually breaks out of the pennant I fail to see where there is any potential either way.

On my reading it could just as well go against you, and currently it is.

Thank you for the feedback. I closed out the position this morning for a tiny profit. On my reading of the chart I had seen the price action oscillating between horizontal and descending trend lines for a few hours and it felt like a good punt to take when the price was up near the descending trend line.
When I went to bed last night it had broken the horizontal and I was hoping to wake up to a nice drop. C'est la vie.

 

[freddysa]

WEC - White Energy Company is waking up!

 

[ProverbialPaul]

Thanks to everyone for their input here.

To say I'm on a steep learnnig curve is an understatement! lol

 

[garthstar]

Recognia Scan - SVL breakout

hello,
just started using the recognia software that now is supplied with belldirect.
so finally i have a stock scanner, its scanning for breakouts sub $1 long, most days over the last week, ive been getting emailed 1-3 potential trades a day.

was hoping some of you guys on here more experienced could also give your opinion of the charts, im looking to add extra criteria, and cherry pick the really good signals from the many im getting emailed daily.

would like to know in particular, this one has a selloff day on the the high vol bar preceding the breakout, which is itself on lower volume. does this matter or not?

thanks for your time all contributors, im learning a gret deal from this thread