Many traders ask me how to trade volume breakout stocks profitably. Not all breakouts succeed in the Stock Market. So, how does one get into good breakout stocks? Here’s a thread explaining how I filter out good stocks with reference to RCF thatI posted on Twitter on 23rd Nov 2022 (up...
I always established a stop before making the trade. Another reason for buying on the Pivotal Point is that it always gave me a clear point of reference. If it was a Pivotal Point on the top or the bottom of a move or a breakout to a new high Pivotal Point or if it was a breakou...
With breakout trades, the goal is to enter the market right when the price makes a breakout and then continue to ride the trade untilvolatilitydies down. Volatility, Not Volume You’ll notice that, unlike trading stocks or futures, there is no way for you to see the volume of trades made...
I tried to restrict any serious pyramiding to the beginning of the move. I found it not wise to enter a pyramiding action if the stock was far from the base-better to wait for the Continuation Pivotal Point of the breakout from a new high. Always remember there are no ironclad rules to...
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The narrow range and improving technical indications make the stock a good risk/reward long candidate at its current level, using an initial stop under the channel bottom, and the trading strategy is to book any quick gain from a volatile breakout or take a quick loss if the set-up fails....
it lags price development. This makes sense because a security at an all-time high should generate widespread interest that translates into enthusiastic buying pressure. When it doesn't, the trend needs to pause and find missing sponsorship or gravity can take control, unraveling the breakout. ...
Recognize and utilize day trade consolidation and breakout patterns Recognize price/volume spikes and drops to effectively trade consolidations and breakout Learn to use moving average to your advantage Understand how price action occurs and how to day trade breakouts Learn to find moving stocks to...
The same is true of range-bound trade setups. Everyone has their own levels they ascribe some importance to, and certain parameters a stock has to meet to be tradable, but they’re all trying to fade a stock that deviates from its range, or play a range expansion like a breakout setup...
Volume is often viewed as an indicator of liquidity because stocks or markets with the most volume are the most liquid and are considered the best for short-term trading. There are many buyers and sellers ready to trade at various prices. Three Volume Indicators Volume indicators are mathematic...