Potential & Breakout trading--Technical tips and tricks

[tech/a]

Both are and I have 2 full positions in the trade.

 

[tech/a]

Thought Id post a common dilemma Breakout traders face.
this is how I handle it.
I'm using a current trade as an example WHC
Click to expand.

 

[Huitzii]

Firstly I would like to thank everyone for their contributions to this thread with special thanks to tech/a.
I love reading this thread....it has opened my eyes so much in the last few weeks.
Here is a chart of a trade im currently in, KGL
If this sees a drop tomorrow to 19.5 I may top up....just wait and see
This one has gone sideways in the last week after a rise last Monday.
I have a STOP @ 18.5.
Im expecting a rise tomorrow considering its volume in the last week was significantly up from the previous week and holding ground, suggesting a drying up of sellers.
Any input or discussion is welcome.
Cheers Huitzii

 

[tech/a]

Fridays bar was a test.
How it unfolds will determine your next move---if any.
All looks pretty standard for a continuation.
Very low volume on reversals.
Your right 19.5c should act now as support.

 

[Huitzii]

Thanks for your reply tech/a.
Here is another chart that im watching closely.
I think that today will be the test to see if REY has what it will take to go on with the job.
A rise on highish volume will put it in my buy list.
Open for discussion as per usual

 

[tech/a]

Some interesting trading today with profit taking starting at around 2pm
My portfolio dropped like a stone from a very pleasing increase to a moderate one.
BRM has been outstanding and its chart is similar to many today so comments on this one similar to a lot of charts.
KGL crashed through support so if you waited you'd be pleased.Still within its trend so worth being on the watchlist.
REY still cooking.
DML had a huge aggressive reversal but still within the trade.

 

[Huitzii]

BRM looked like it was going to head for the stars this morning but as tech said it had a moderate pullback this afternoon but still looks the goods.
KGL had a quite large retracement today, I removed my stop loss to see what happens on open tomorrow....any drop and I will be out of this trade.
The new stop is 18.0 which should also be the new support.

 

[tech/a]

I removed my stop loss to see what happens on open tomorrow....any drop and I will be out of this trade.

If you had a stop at 18.5 then you should now be out of the trade.
If you move a stop its not a stop.
Fear of loss often up grades in these instances to the reality of a larger loss.
Get used to losses as you'll have plenty but at all costs minimise them.

Id like to know when you entered and why you chose 18.5c as your stop.
How you position sized.
Only as an exercise on managing a trade like this.
I'm being harsh but the market will leave me for dead!!

Dont know where your getting your data from but my chart is very different to yours.
Logical stop (now) is 15.0c

 

[Huitzii]

If you had a stop at 18.5 then you should now be out of the trade.
If you move a stop its not a stop.
Fear of loss often up grades in these instances to the reality of a larger loss.
Get used to losses as you'll have plenty but at all costs minimise them.

Id like to know when you entered and why you chose 18.5c as your stop.
How you position sized.
Only as an exercise on managing a trade like this.
I'm being harsh but the market will leave me for dead!!

I removed the "stop" because it was late in the day and I can still sell early tomorrow at the same loss.
i work all trades on a 10% risk/loss ...i entered at .205, so a .02 drop will be my stop.
If tomorrows open sees a .05 drop i will be out.

 

[Huitzii]

i just noticed that there are some days missing from my data....14th/10 to 26th/10 hmmmmmm
time to check it out.
my data comes from netquote "end of day data"

 

[tech/a]

I removed the "stop" because it was late in the day and I can still sell early tomorrow at the same loss.
i work all trades on a 10% risk/loss ...i entered at .205, so a .02 drop will be my stop.
If tomorrows open sees a .05 drop i will be out.

Not if it gaps down.
Ok
I wouldn't trade smalls in that way but if you've tested it and your happy with your R/R --- then its not for me to say.

 

[Boggo]

Just a bit of an update on some previous charts/setups.

First is CAH, its still hanging in there as nice swing trade setup and it has also popped up in my Metastock scan as a 'look at me' pattern.
(Note to self - remind tech/a when it breaks out )
https://www.aussiestockforums.com/forums/showpost.php?p=588911&postcount=42

Next was SAR, this was used as an example of my procedure, as predicted it is struggling around the 65 area but still looking positive.
https://www.aussiestockforums.com/forums/showpost.php?p=589671&postcount=52

Next is KZL, still having difficulty getting away from the former resistance but seems to be on the right side of the line.
https://www.aussiestockforums.com/forums/showpost.php?p=589734&postcount=56

In an earlier post I mentioned that I had sold out of IDL, basically it was going nowhere and that is still the case, it would have just continued to tie up funds that could be better used elsewhere.

A few new additions to the list are IAU (got stopped out recently after a great run), SRL, PXS and IPL.

Charts of CAH, SAR, KZL and IAU below.

(click to expand)

 

[tech/a]

These are my holdings on my breakout portfolio.
I started this in earnest after I came back from FIJI 3/10/10
I only had 2 held over before.
I post this just as a matter of interest.
Its constantly being added to and stops triggered as those which stay as keepers work their way into my held stock.
On a $75K account its currently with the open profit shown which varies.

 

[Synergy]

Keen to get some ideas on the RSL chart below...

Interesting chart actually. When is what looks like a low volume dip actually the start of a bigger move down? I don't mind that it has come back down and touched the double top highs of sep and oct, but are there any signs of the upwards trend continuing?

 

[Tekwrek]

Thanks for your reply tech/a.
Here is another chart that im watching closely.
I think that today will be the test to see if REY has what it will take to go on with the job.
A rise on highish volume will put it in my buy list.
Open for discussion as per usual
View attachment 39542

Breathtaking, THANKYOU!

 

[tech/a]

REY Jumped off the stove. Id expect an inside day
RSL has some life but needs to show that this support will hold.
Would like to see a solid rise.

 

[Huitzii]

Fortunately for me KGL saw an increase of 8.11% on open and saw me out of a scary trade @ .020
REY saw a nice rise of 28% and backed into 16% on close..tomorrow is a raffle, maybe its up but maybe some temperory retracement on the large tail today,the new day will tell....im partialy influenced to think that REY will continue for another reasonable day on medium volume.
Any input tech?
By the way tech i dont mind you scalding me at times, I do understand and respect your opinion, im just at an intermediate stage atm
just my

 

[Mickel]

Hi to all on this thread. I'm a long time holder of LNC. As you can see from the attached graph it has recently taken off with 5 consecutive days of increases of 4% +.

I'm wondering if anyone has had it on their watchlists and, if not, what are the criteria that it doesn't satisfy.

I mention that Mr Z posted on 15/9/10 and predicted that it would have a bottom of $1.70 and after reaching $1.95 it would rise to $2.50 with only slight resistance around $2.20. This has come to be spot on.

If anyone has a view on what it is likely to do over the next few months based on the charts, I'd like to hear it.

Thanks

Mickel




http://pco.paritech.com/paritech_ch...&exchange3=NASDAQ&DateTime1=119201011:28:47PM

 

[tech/a]

REY
I expect an inside day then look for developments after that---either way.
LNC
In the short term I feel its made its high.
looking now for a corrective move off the wave 5 high.
Weekly shows this as a wave 3 top so more to come on the upside in the future.
Click to expand
First chart is Daily and second weekly LNC

 

[tech/a]

REY and LNC behaved as expected.