Dont buy breakouts on impulse-just wait and--

[sudoku1]

Gents
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Rider
read about precaution before using the strategy.

Remember
Neal Hughes is basically daytrader trading 60minute and 5 minute time frames etc. Now What about using his tactics on a long term basis specially when you trade long term on darvas box theory momentum trading?
The concept can still be applied. but you need to look at breakouts on weekly charts of the stock in question and then drop down to daily chart
to implement pullback buying as dilineated in the examples.
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If you want perfect trades, perfect your trading plan. Neal Hughes
"FibMaster
Thanks to an excellent video from NEAL-IT opens doors to new thinking.
Re-think breakout strategy.
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Generally breakout occurs and just above the breakout people place their buy orders, and short sellers place their sell orders.others have their covering orders.
So the breakout area is a high activity zone.More of a danger zone.
and by observation you will see most breakouts fail fast and the buyers get stuck. THis happens to the Darvas box theory followers more often.
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Small example
Look at what happened to breakout buyers on 29th or 30th october2006

As an example you may see the iNDIACEMENTS stock which made a breakout over 221 and reached 222+, (false breakout,then faded down all the way on 31october to 214.70

Look at what happened to clever buyers who bought after breakout failed.

BUT IF YOU LOOK AT THE PEOPLE WHO WAITED FOR THE BREAKOUT TO FAIL
they bought Indiacements at 214 to 216 rupees price.
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But we have a rescue mission here for those people failing in false breakouts.
Hint buy on pullback at fibonacci support

Want to know about it?
Why not!!!!!!!!!!!!!!!
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see the video

http://207.6.227.129:8080/lessons/Trading_Breakouts/introduction.html

http://207.6.227.129:8080/lessons/Trading_Breakouts/breakout_trading1.html


and


http://207.6.227.129:8080/lessons/Trading_Breakouts/breakout_trading2.html

what to do?

Normally over70% of breakouts fail and pullback
BECAUSE YOU HAVE FALSE BREAKOUTS.

You can filter out false breakouts using fibonacci techniques

DONT enter blindly on a breakout on impulsive thinking

Instead wait for beakout to prove itself
drop down to a lower timeframe
enter only on a pullback at a fibonacci support.

YOUR CHANCES OF FAILURE MAY GREATLY REDUCE.

rvlv
rethink your old action style!!!!!!!!!

Note
Trading Breakouts.
Breakouts can be highly rewarding, because they often indicate the start of a major move. However, most breakouts fail.
This Trader Tip will teach you how to avoid the losers, and bank the winners!

:thumb:...................

 

[trump]

DONT enter blindly on a breakout on impulsive thinking

Instead wait for beakout to prove itself
drop down to a lower timeframe

Prove means, followup , right?
well, there are other criteria for Breakouts also, like to analyse the builtup to breakout.It needs lot of price action setups before a valid break out occurs, else we will have breakout traps.
By the way why switching to lower tf? Breakout on my trading frame is sufficient to analyse, why go down? instead I should look for S/R zones on my present tf.
I always prefer failed failure for B/O entries.