breakout levels for stocks

How to calculate the Break out/Break down levels & from that Entry price & S/L for individual stocks from the previous day's data,for day trading.
T/u

Well Where are the experts??

I think only Traderji can answer to this question.

Waiting for the reply........

Hi,

Maybe you should read Technical Analysis of Stock Trends by Robert D.Edwards & John Magee...

Regards,
Lucky trader

Technical Analysis of Stock Trends by Robert D.Edwards & John Magee...
http://rapidshare.com/files/1692071...nical_Analysis_Of_Stock_Trends_-_ENG.pdf.html

You can easily calculate the SL and RL for a stock based on the prev days closing,high and low price values.
but the market not always follow it esp during a volatile market condition.
Now our market is highly volatile.
Dont go for day trading
You may loose your money in minutes-if then- u ll have to wait for months and years to recover your loss.
Buy shares at dip and sell them when they rise. You ll earn a descent profit without any tension.
Still wanna learn how to calc SL & RL of shares?

For Day Trading you need to look at intra-day price charts and use the previous swing lows or swing highs as your stoploss and/or entry price.

For defination and analysis of swing high go to http://www.investopedia.com/terms/s/swinghigh.asp

For Swing Low go to -> http://www.investopedia.com/terms/s/swinglow.asp

Example: a intra-day close above the swing high in an uptrend would indicate and upside breakout and a BUY signal. One can then keep the previous swing low as your stoploss.

thank you traderji.I willcome back after going through the suggested sites.
What i had in mind was,the calculation of retracement levels after B.O/B.d ,to make entries ,either for long or short.Also the implication & reversal of trade in case the S/L is hit,ie whether trade could be reversed.

Stocks generally retrace anywhere between 1/3rd to 2/3rds of the previous move in a retracement. You will have to decide yourself the entry point in a retracement based on the current market action. There is no fixed set of rules that you can follow.

Hi Traderji
spot you after very long time......

Thanks for the solution

Regards,
Luckytrader

Fine Traderji.The site was very useful & informative in understanding ,esp where the s/l should be put.
but,what about Trend reversal.can we conclusively reverse the trade if s/l is hit & apply the 1/3 or 2/3 levels for tarjet.I take the s/l points slightly below the swing high for long & viz versa for short.is there any other factor other than price to be taken into account for trade reversal.