Potential & Breakout trading--Technical tips and tricks

[tech/a]

Bugga had this massive response typed out and I lost it.
Sorry Charts will have to suffice with notes.
BMN and UXC featured.
Bugga some really meaty stuff in there and I haven't got time to re type it!
Briefly UXC in a range breakout of immediate down trend possible but not a classic breakout as most know. Ranging highly likely as shown with Volume support boxes I made back in May.
BMN is wait and see.

 

[It's Snake Pliskin]

Would love to participate but don't know how to use Vista to post a chart on here.

Are we to show hindsight or in advance charts?

 

[Sean K]

Would love to participate but don't know how to use Vista to post a chart on here.

Are we to show hindsight or in advance charts?

Only The Chartist did hindsight trades here.

Until he started to do live trades under scrutiny and then he quit.

I reckon tech would probably approve any example of how to manage a breakout trade.

 

[It's Snake Pliskin]

I reckon tech would probably approve any example of how to manage a breakout trade.

To show tips and tricks some hindsight element is important. I hope we can all learn something from the thread.

I was looking at LEI - at around $8-8.50 range of recent and past highs. Huge volume a week ago has eaten up a probe lower. Chart anyone?

As per your suggestion charts and explanations are compulsory.

Could that be charts or explanations Joe?

 

[tech/a]

Would love to participate but don't know how to use Vista to post a chart on here.

Are we to show hindsight or in advance charts?

I agree Snake hind site will show a great deal. It "indicates" future possible results.I prefer R/T as it sharpens the skills and you see BOTH that which pans out and that which gets you.

More importantly how people handle both the positive and negative of trading.

 

[white_crane]

I've just noticed that my chart for UXC is different to the one tech/a posted. On my chart, the bar on April 12 (the first volume support box in April on tech/a's chart) is only about half the size. Strange

I'm using Incredible Charts by the way.

 

[Huitzii]

Hi tech, I've been playing with this chart and its toying with my head lol.
Anyhow it looks primed to shoot for the stars (from my eyes).
the only thing that really concerns me is the moderately high volume today seeing it come back into its opening price of .0395 (I expected a good gain on this volume)
This stock has been pushing hard to break out from this level for a week or so and hasn't succeeded, so from here is it more likely to head south?
I would like you opinion on how the volume relates to the price action.
From how i see it today saw 2 to 3 times its normal recent volume which appeared to be from a strong early buyers list which saw some short selling in the afternoon.
I don't hold this stock im just trying to learn how to interpret the volume.
Anyhow the chart is HIG (HIGHLANDS PACIFIC)

 

[satanoperca]

Hi Huitzii,

No expert here, but extreme volume with a wide bar ending where it started the day indicates to me weakness, an upthrust. This is a trade I would not enter at this stage, the next few bars might confirm a reversal. I would also look for divergence in the coming days on your choice of indicator, for me a stoch or rsi for further confirmation.

A big THANKS to Tech/A for his contribution to this thread.


Cheers

 

[tech/a]

satanoperca
Is quite correct.This bar currently indicates selling coming in.
However
It looks very suspect with previous high volume bars moving forward in the last consolidation area.
so while it looks like this may well reverse off resistance it could (but unlikely in my view) turn out to be a test---continuing on in a few sessions time.

Chart is from Tradeguider VSA software.Not all commentary about the bar is shown.

Click to expand

 

[Joe Blow]

Could that be charts or explanations Joe?

Hi Snake,

I think charts really help to illustrate ideas and concepts and it would be preferable to have both if possible.

What sort of problem are you having posting charts? There are plenty of free image editing applications such as Irfanview that work fine with Vista.

 

[Huitzii]

satanoperca
Is quite correct.This bar currently indicates selling coming in.
However
It looks very suspect with previous high volume bars moving forward in the last consolidation area.
so while it looks like this may well reverse off resistance it could (but unlikely in my view) turn out to be a test---continuing on in a few sessions time.

Chart is from Tradeguider VSA software.Not all commentary about the bar is shown.

Hi Huitzii,

No expert here, but extreme volume with a wide bar ending where it started the day indicates to me weakness, an upthrust. This is a trade I would not enter at this stage, the next few bars might confirm a reversal. I would also look for divergence in the coming days on your choice of indicator, for me a stoch or rsi for further confirmation.

A big THANKS to Tech/A for his contribution to this thread.


Cheers

Thanks for your replies guys I can clearly see that now and it gives me a definite indicator to look out for in other trades as to where my stop loss will be placed on a high volume day.
Cheers

 

[Boggo]

This is an example of where the a stop should be triggered (in this case mine yesterday).

Today however, trading halt and then up 18% on the re-open.

Got to have rules, very easy to say I should still be in it and have those feelings of missing out on profit. It could just as easily have gone down by 18%.

Stick to your procedure regardless and don't be influenced by these one off occurrences.

(click to expand)

 

[skc]

This is an example of where the a stop should be triggered (in this case mine yesterday).

Today however, trading halt and then up 18% on the re-open.

Got to have rules, very easy to say I should still be in it and have those feelings of missing out on profit. It could just as easily have gone down by 18%.

Stick to your procedure regardless and don't be influenced by these one off occurrences.

(click to expand)

IIF actually made an announcement a few weeks back regarding an approach from GMG. So a takeover was in the works.

Sorry to talk fundamental in the technical thread. But perhaps a quick glance of recent announcements might be of help this time.

 

[Boggo]

IIF actually made an announcement a few weeks back regarding an approach from GMG. So a takeover was in the works.

Sorry to talk fundamental in the technical thread. But perhaps a quick glance of recent announcements might be of help this time.

Saw that skc, you still have to protect yourself though from sudden down turns in price movement which are a factor when you buy any stock.

Its not a case of fundamentals vs technical. One of the best methods of entry is capturing a breakout, most times it works as this did when it broke in the low 40's. When a stock runs up and then starts to wane it is then time to put a stop in a position that captures the majority of the profit if it has an out of character move.

On other stocks such as IAU or JML etc you can stay further away from the action and below where others are likely to have their stops, give the stock room to take a breather prior to their next run up but when you suspect that things are changing the you need to alter your setup.

I could probably put up a chart such as CPL (where the IIF funds now are) on a daily basis but it would be of no benefit to anyone and would probably border on ramping anyway.

If tech/a reads this he will correct me I am sure but I think his idea for this thread was to put up the good and the bad, ie the winners and the losers and if possible why a candidate became either.

IIF and CPL charts below

(click to expand)

 

[tech/a]

If tech/a reads this he will correct me I am sure but I think his idea for this thread was to put up the good and the bad, ie the winners and the losers and if possible why a candidate became either.

Yes
Commentary on why a breakout trade worked/why one failed or did nothing.
What we can do as traders to spot in advance technical conditions which enhance or detract from a trade.

Better still a platform where traders can post charts realtime and discuss/demonstrate or simply practice on analysis.

Perhaps even designing a breakout set of rules to develop a system---Mind you I already have a few of these systems.---but for those who dont----.

IIF
How about the Double top?

 

[Synergy]

Posted a chart of BAU a couple of days ago....

Looks as though the low volume pullback after the initial break has worked wonders and it put on 20% today.

Volume suggests it isn't over stretched and it traded above 30c all afternoon so positive signs looking forward .

The 1 year chart suggests this has further to go, but another couple of consolidation days above 30c would not be a surprise.

 

[tech/a]

Great chart Synergy and terrific insight.
For those who perhaps didn't see it clearly.
Worth having a scan to find these. Could be worth finding a few to follow.

CLICK TO EXPAND

 

[It's Snake Pliskin]

Hi Snake,

I think charts really help to illustrate ideas and concepts and it would be preferable to have both if possible.

What sort of problem are you having posting charts? There are plenty of free image editing applications such as Irfanview that work fine with Vista.

Hi Joe,

Thanks for the advice. The problem is I don't know Vista well, totally useless with computer action and forget how to do things if not done regularly. I'll explore Vista and explore the other sites that I didn't know existed and use them to edit. It will take some time, though. Thanks for the link.

Cheers...

 

[$20shoes]

Hi Joe,

Thanks for the advice. The problem is I don't know Vista well, totally useless with computer action and forget how to do things if not done regularly.
Cheers...

Vista and windows 7 have their own image capture utility - Snipping Tool.

Open Snipping Tool by clicking the Start button

, clicking All Programs, clicking Accessories, and then clicking Snipping Tool.

More detail here:

http://windows.microsoft.com/en-US/windows-vista/Use-Snipping-Tool-to-capture-screen-shots

That's the hard bit done, Snake. Now there's no excuse

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will contribute when i have some patterns to show. Interesting thread.

 

[Boggo]

A follow up from the chart here https://www.aussiestockforums.com/forums/showpost.php?p=588151&postcount=17
Its had its little breather over the last few days, now on its merry way today.

Looks like there are a few others that have been mentioned here taking a rest today and testing short term support.

GXY example below

(click to expand)