What to look out for breakout ?????
Now that you know three tactical approaches to trading the breakout, lets look at how to recognize which OR breakouts are the best to trade. a quick checklist for evaluating a stocks 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 stocks 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
Now that you know three tactical approaches to trading the breakout, lets look at how to recognize which OR breakouts are the best to trade. a quick checklist for evaluating a stocks 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 stocks 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