What to look out for breakout ?

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  #1  
Old 25th January 2008, 07:14 PM
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akgandhi is on a distinguished road
Default What to look out for breakout ?



What to look out for breakout ?????
Now that you know three tactical approaches to trading the breakout, let’s look at how to recognize which OR breakouts are the best to trade. a quick checklist for evaluating a stock’s price and volume action. Remember these criteria are used not only to find stocks that are likely to lead to a successful breakout, but also to define good risk points based on the stock’s price and volume action.
1. Good consolidation before the breakout
2. High relative volume at the breakout
3. A clean breakout followed by bullish price action
4. A bullish big picture

N.B : Knowledgable persons should only mock on the abv points if they want to help and share their knowledge

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  #2  
Old 25th January 2008, 10:41 PM
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Join Date: Jul 2004
Posts: 5,311
Saint will become famous soon enough
Default Re: What to look out for breakout ?

Quote:
Originally Posted by akgandhi View Post
What to look out for breakout ?????
Now that you know three tactical approaches to trading the breakout, let’s look at how to recognize which OR breakouts are the best to trade. a quick checklist for evaluating a stock’s price and volume action. Remember these criteria are used not only to find stocks that are likely to lead to a successful breakout, but also to define good risk points based on the stock’s price and volume action.
1. Good consolidation before the breakout
2. High relative volume at the breakout
3. A clean breakout followed by bullish price action
4. A bullish big picture

N.B : Knowledgable persons should only mock on the abv points if they want to help and share their knowledge
Nice post,AKG.....great stuff.

Saint

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  #3  
Old 26th January 2008, 05:06 PM
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shivaraja is on a distinguished road
Default Re: What to look out for breakout ?

I look at rising OBV with stock price consolidating....to screen stocks which are about to breakout...i do see peoeple recommending narrow bollinger bands and breakout of upper band with volumes as a way to identify breakout.

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  #4  
Old 28th January 2008, 10:56 AM
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biyasc is on a distinguished road
Default Re: What to look out for breakout ?

Quote:
Originally Posted by akgandhi View Post
What to look out for breakout ?????
Now that you know three tactical approaches to trading the breakout, let’s look at how to recognize which OR breakouts are the best to trade. a quick checklist for evaluating a stock’s price and volume action. Remember these criteria are used not only to find stocks that are likely to lead to a successful breakout, but also to define good risk points based on the stock’s price and volume action.
1. Good consolidation before the breakout
2. High relative volume at the breakout
3. A clean breakout followed by bullish price action
4. A bullish big picture

N.B : Knowledgable persons should only mock on the abv points if they want to help and share their knowledge
are you talking about opening range breakout?

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