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The breakout day is a range expansion day after the consolidation phase that happens after one leg up in the trend. This can be considered as a volatility contraction phase. I buy on the 4% breakout day as it happens but like I said not every 4% breakout is a buy candidate. Thats where the chart selection matters. My stops are always the low on the entry day, if it fails I am out. Just for fun, see the the top 25 or 30 performers on ASX and see when the sharp move happened. I can be sure that they all began with the 4% break out. It's easy to spot them based on the characteristics that I look for. It is shorter term swing trading but the momentum typically fades after 5 days and hence I use the term burst.

[QUOTE="tugga82, post: 1142735, member: 86822"] The breakout day is a range expansion day after the consolidation phase that happens after one leg up in the trend. This can be considered as a volatility contraction phase. I buy on the 4% breakout day as it happens but like I said not every 4% breakout is a buy candidate. Thats where the chart selection matters. My stops are always the low on the entry day, if it fails I am out. Just for fun, see the the top 25 or 30 performers on ASX and see when the sharp move happened. I can be sure that they all began with the 4% break out. It's easy to spot them based on the characteristics that I look for. It is shorter term swing trading but the momentum typically fades after 5 days and hence I use the term burst. [/QUOTE]

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